In 2015, the Government of India launched the PMAY scheme under the “housing for all” project to help people avail their own homes instead of staying on rent. The scheme aims for housing for all by the year 2022 for the people in urban areas. For the rural areas, a different scheme has been launched for the people to build their own permanent houses. PMAY aims to increase the ownership of the women, thus also mandates the people amongst the EWS[Economically weaker sections] & the LIG[lower income group] to have their own houses along with the joint co-owner as female. The PMAY scheme aims to boost the ailing real estate sector by providing the subsidy on the scheme to the people on home loans. The individual can avail of a subsidy of Rs.2.67 lakh on the interest amount on the home loans. The home loans can be availed from the list of banks approved by the PMAY, which includes the public sector banks, private banks, & some of the cooperative banks. The banks have to apply for the home loan subsidy to PMAY, which, subject to approval, can help the individual avail subsidy.
The PMAY scheme has helped many people buy their dream homes under the PMAY scheme, thus helping people buy their own houses and enjoy permanent ownership. The claims for PMAY can be rejected if the applicant already owns any of the property across India, submits inappropriate or incomplete documents, or else applies under the wrong income group. There are thousands of beneficiaries under the scheme who have availed of loans and subsidies under PMAY. This scheme, along with benefitting the real estate sector, has also benefitted the home finance sector as taking loans to avail subsidy is mandatory. The loans can be availed for any of the duration which is suitable & eligible for the lender. After the approval of the subsidy by PMAY, the subsidy is credited into the applicant’s bank account to repay it to the bank. The PMAY scheme has helped create employment for millions under the scheme as the housing sector has got a great boost. Also, the real estate sector benefits largely the construction contractors, construction material suppliers, architect firms, and RCC agencies. Etc. Also, the real estate sector helps generate a huge source of revenue in the form of taxes to the government.
PMAY effect on the housing sector
The PMAY scheme has largely benefitted thousands of people to buy their homes and enjoy ownership of the property. Many homeless people in the urban areas the target of housing for all still lacks behind. Though the scheme has helped many own their permanent houses. Also, this scheme ensures that the houses should be built so that there should be proper water supply connection, gas connection, electricity connection & also proper toilets being available inside the house. Thus the quality of the housing also matters. The scheme has also helped in increasing the women-based ownership of the houses. The scheme tries to cover all the weaker sections of the society like the widows, scheduled castes, scheduled tribes, Other backward class category people, people amongst lower strata of the society in terms of income, and the transgender. Many underprivileged people are deprived of basic facilities like shelter; thus PMAY scheme helps in fulfilling their dreams of owning homes.
The government also sets many housing schemes in partnership with the state housing development board to built houses for the needy to help them provide permanent shelter. Across India, many low-cost housing scheme projects have been constructed to help people buy their own houses. The states of Tamil Nadu, Maharashtra, Delhi & Karnataka are the leading states which have constructed houses for the poor and the low-income group people to get the ownership of the house. Also, for the government housing projects, the flat buyer can take the subsidy on loan.
The PMAY scheme has had a profound impact on society as the scheme covers all the weaker sections of society and people with a low income. Thus the scheme has helped thousands of people avail subsidies for housing and also helped in increasing the ownership of the houses by the people. The PMAY scheme has largely helped increase the ownership of the homes by the people and has also benefitted the real estate sector.