The PMAY scheme is the Scheme launched, which is known as Pradhan Mantri Awas Yojana, which means housing for all Scheme. The PMAY scheme helps an individual to avail housing loan subsidy of Rs. 2.67 lakh while purchasing the flat. The Scheme is eligible only to those who do not own any of the property anywhere across India. The Scheme is also popularly known as the “Housing for all scheme.” The Scheme aims at providing houses for all by the year 2022. The Scheme was launched in the year 2015. The Scheme has helped many individuals buy their properties. And also, this Scheme targets the ownership of women. The property market in India is mostly male-dominated. Thus to increase the ownership of women in the properties, the Scheme makes it mandatory to have one co-owner as female for availing the subsidy. The Scheme has also given a boost for the real estate market, reeling under the stress with lakhs of beneficiaries availing the loans. The Scheme typically focuses on the urban areas for the purchase of the houses.
There is a large-scale migration in urban areas due to which the people without homes are many in numbers and are forced to stay on rental accommodation. Thus this Scheme helps people become owners from the tenants. The borrowers also get income tax exemption under the income tax act 80C. The loans can be availed from any of the banks to become eligible for the interest subsidy. The banks usually charge interest rates of 6-9% per annum on a compounded annual basis. The banks also get higher business through the Scheme as people become more optimistic about buying homes due to the subsidy provided by the government. There are multiple cities in India; thus, out of that top 500 cities under municipal jurisdiction are given preference for the benefit of the Scheme. The Metros are the major markets that are given preference for the Scheme. The Scheme for rural India is different to build the house, which is a separate scheme from PMAY. The applicant has to avail of PMAY while applying for a loan from the bank and has to give a separate application for the subsidy scheme. Then the authorities verify the documents and then approve the subsidy scheme. Thus availing of the subsidy is an easy process. Under the Scheme, the documents are verified, and then the sanction is approved by the government.
Eligibility criteria for the Scheme:
- The applicant or the co-owner should not own a permanent shelter anywhere across India.
- The applicant or the co-applicants income should not be up to Rs.18 lakh altogether. The income should not exceed that.
- The beneficiaries cannot avail of dual benefits if the applicant has already taken any benefit under the Central/State government scheme.
- All the towns under the municipal jurisdiction are eligible for the loans under the Scheme.
- The house should be constructed within 36 months from the date of the first installment.
- Having at least one woman as co-owner is necessary for availing subsidy under the PMAY scheme.
- The carpet area for the house should be 160 sq. meters for MIG-I and 200 sq. meters for MIG-II.
- The subsidy scheme is eligible for 20 years only as against the home loan tenure of 30 years.
- All the accounts should be linked to aadhar for availing subsidy.
- The Scheme majorly focuses on the EWS-Economically weaker sections, LIG-lower income groups, and the people belonging to the MIG- middle-income groups.
The loans can be availed under the subsidized Scheme under which the benefit of Rs.2.67 lakh can be availed, and the individual can buy their own house. The Scheme majorly targets urban households with middle or lower-income groups. The Scheme has helped lakhs of people benefit under the Scheme and thus has helped many households avail permanent & owned houses instead of staying on rent. The focus on major cities & metros is amongst the first preference from the government to avail the Scheme. The individual can avail of only one subsidy at a time while availing the benefit.