The Government of India introduced the Pradhan Mantri Awas Yojana (PMAY) with the aim of facilitating affordable housing for the urban poor. The scheme was launched on 25th June 2015, under the flagship initiative of ‘Housing for all.’ Under the PMAY initiative, the government has set a target of providing 20 million houses at affordable rates by 31st March 2022. Building houses using eco-friendly equipment and construction methods is one of the distinct features of this scheme.
Individuals belonging to the Economically Weaker Section (EWS) or Lower Income Group (LWG) and qualify under the Pradhan Mantri Awas Yojana eligibility criteria can apply under this scheme to avail affordable houses. The Credit Linked Subsidy Scheme (CLSS) will also be applicable to a home loan availed by an applicant for constructing or renovating a house.
The PM Awas Yojana has been further linked with several other schemes to ensure the proper amenities and facilities required for a living. It has been converged with Saubhagya Yojana for electricity connection, Ujjwala Yojana for LPG gas connection, Jan Dhan scheme for banking facilities, and so on. The PMAY scheme functions in 2 categories, which are –
Pradhan Mantri Awas Yojana- Urban.
Pradhan Mantri Awas Yojana- Rural.
The data based on which the beneficiaries are classified in the above two categories is the Socio-Economic Caste Census of 2011.
Features of the Pradhan Mantri Awas Yojana scheme
The subsidy interest rate at which housing loans will be provided under the scheme stands at 6.50% per annum. The loan tenor for such loans will be 20 years.
Ground floors will mostly be allocated to elderly and specially-abled citizens.
Houses built under the PM Awas Yojana will be equipped with eco-friendly compliances.
The specific groups of citizens eligible for this housing scheme include –
Women.
Scheduled Caste.
Scheduled Tribe.
Economically Weaker Section.
Lower Income Group.
Medium Income Group-1.
Medium Income Group-2.
Only applicants who will meet the specified PMAY eligibility can qualify under the scheme to avail a loan.
Individuals who need funds for constructing their houses can rely on such government initiatives. However, they do need to focus on the details of such schemes and certain important things to know before applying for a home loan.
Pradhan Mantri Awas Yojana Eligibility Criteria
Beneficiaries under the PMAY scheme will be shortlisted based on the following eligibility criteria –
The applicant or any immediate member of the family must not own a pucca house in any part of India.
He/she should not have availed benefits from any other housing scheme backed by the state or central government.
The beneficiary family should not have availed the PMAY-CLSS scheme from any of the Primary Lending Institutions (PLI).
To verify if an individual qualifies under the Pradhan Mantri Awas Yojana eligibility, the authorities ask for certain documents. The documents required to apply under this scheme include –
Proof of identity (Aadhaar Card, Voter ID card, PAN card, passport, driving license, etc.)
Proof of address.
Proof of income.
Proof of purchase of property (if applicable.)
The documents which will be required for a loan application is one of the queries about home loan you must enquire about.
Individuals who fail to comply with the PMAY eligibility or are looking for affordable home loan interest rates can consider approaching a financial institution for funds. They can select the ideal lender and eventually look for ways to repay a home loan effectively.
The government is yet to achieve its target with the PMAY scheme. With more and more individuals shortlisted under the eligibility criteria for Pradhan Mantri Awas Yojana, the task becomes further challenging. An enlisted or eligible borrower can easily avail the loan by referring to a leading lender.
