ne of the most important needs of a person is a house. However, buying a house is very difficult. It is due to the rising prices of real estate. While home loans can help, people still find it a problem to pay such a high expense of buying a home. In order to help further people purchase a house, the government launched the Pradhan Mantri Awas Yojana (PMAY) scheme in 2015. The aim of the scheme is to offer houses to poor people living in urban localities. The PMAY scheme gives people subsidy in the loan. Pradhan Mantri Awas
Yojana’s aims at housing for all by 2022.
Credit Linked Subsidy Scheme (CLSS) under PMAY offers interest subsidy to the people. The government gives financial assistance to the citizens as per the CLSS. The scheme offers help to the poor people in urban localities.
Who does Pradhan Mantri Awas Yojana help–
- A beneficiary family consists of a husband, wife, unmarried daughters and sons.
- A beneficiary shouldn’t own a pucca house.
- The scheme offers financial assistance to poor citizens in cities.
- Beneficiaries of PMAY are Economically Weaker Section (EWS), Low Income Group (LIG), and Middle Income Groups (MIGs).
- The annual income for EWS is up to Rs. 3 Lakhs.
- It is between Rs. 3 Lakhs to Rs. 6 Lakhs for LIG.
- The annual income for MIG 1 is between Rs. 6 Lakhs to Rs. 12 Lakhs.
- The annual income for MIG 2 is between Rs. 12 Lakhs to Rs. 18 Lakhs.
One of the most important benefits that Pradhan Mantri Awas Yojana offers is the subsidy. However, it is different for EWS, LIG and MIGs. The EWS and LIG people can get an interest subsidy of 6.5% per annum. The interest subsidy for MIG 1 is 4% per annum. The people in MIG 2 can get interest subsidy of 3% per annum. However, the tenure of the loan can’t be more than 20 years. The EWS people can get a subsidy on the house with a carpet area up to 30 square metres. The subsidy for the LIG is on a home with a carpet area up to 60 square metres. The carpet area should not be more than 160 square metres for MIG 1 and 200 square metres for MIG 2.
- Benefits for Women
Pradhan Mantri Awas Yojana offers women benefits such as ownership of the house. It is important that a female head of the family must be the owner or co-owner of the house.
- Houses in Urban and Rural Areas
PMAY is not only for people in cities. It is also for people living in rural areas. Pradhan Mantri Awas Yojana (Gramin) is a scheme that offers financial help to citizens living in rural areas.
The scheme prefers the senior citizens and differently abled citizens for houses on ground floors. The house construction will be done with sustainable and eco-friendly technologies, and the scheme also offers good drinking and sanitisation facilities. The CLSS will get started in the first stage of the scheme. Pradhan Mantri Awas Yojana helps people get home by giving them a subsidy to reduce the financial burden.