One of the most prestigious projects launched by the Government of India, the Pradhan Mantri Awas Yojana housing for all scheme has become the talk of the town since its inception in June 2015. The project is one of the most futuristic projects ever launched by the Indian government, with the mission to eradicate slums and provide people with a ‘pucca’ or cemented house, especially in the urban areas of every city in the country. Without further ado, let’s find out all the important things you need to know about the scheme.
Highlights of the scheme
Below are the main highlights of the PMAY scheme.
- Eco-friendly, sustainable technologies are to be used for constructing the houses
- The scheme provides beneficiaries with a subsidized interest rate of 6.5% on housing loan, with 15 years tenure.
- Senior citizens and differently abled individuals will be provided special preference when it comes to allocation of flats on the ground floors.
- All the urban areas within the country are covered in this scheme, including the 4041 statutory towns. The first priority will be extended to the 500 Class I cities. This is to be done in 3 phases.
- The credit linked subsidy scheme is to be implemented across the country in all the statutory towns, from the very first stage.
Objectives of the scheme
The main objective of the scheme is to make housing affordable for everyone by the year 2022
- The scheme especially aims at providing affordable housing to people belonging to the economically weaker sections of the society, women serving as bread-winners of the family and members belonging to scheduled castes, scheduled tribes and other backward classes.
- PMAY is also meant to benefit additional demographics such as widows, members of the transgender community and other members belonging to lower income groups, who are typically ignored.
- In order to benefit from the scheme, registrations are made mandatory by the government.
- The scheme is aimed at targeting urban areas within the states and union territories of the country.
Eligibility under the scheme
The following are the main beneficiaries under the Pradhan Mantri Awas Yojana Scheme
- Economically weaker sections (EWS): Individuals with an annual household income below ₹3 lakhs
- Light Income Groups: Individuals with an annual household income above ₹3 lakhs but below ₹6 lakhs
- Medium Income Groups 1 (MIG1): Individuals with an annual household income below ₹12 lakhs
- Medium Income Groups 2 (MIG2): Individuals with an annual household income above ₹12 lakhs but below ₹18 lakhs, looking to construct a house
- Minorities: Members of SC, ST and OBC groups who can provide caste certificates and relevant income documents
- Women: Women belonging to LIG or EWS categories
Home loan interest rates under the scheme
The current home loan interest rates offered by banks is of 9% per annum. However, with a 4% interest subsidy, on a loan of ₹9 lakhs, one can get an effective interest rate of 5% under the Pradhan Mantri home loan scheme.