The Government of India launched the Pradhan Mantri Awas Yojana under its ‘Housing for All’ mission. The initiative provides affordable housing units for the urban poor and subsidy on home loan interest rate. Read on to know more about its features and benefits.
Buying a home is a dream for many. A home gives you a sense of security and pride of being a homeowner, besides, providing a safe haven for your beloved family members. But, not all can afford to buy a home, especially the people belonging to the poor sections of the society. In India, a significant portion of the population is either homeless or lives in slums. To help these people get a permanent home, and encourage the people for low-income groups, the Government of India launched the PMAY or Pradhan Mantri Awas Yojana initiative.
Let us look at the features and benefits of PMAY
- Provides a pucca housing unit for all
The PMAY scheme is an ambitious affordable housing plan under which the government aims to provide housing for all Indian citizens by March 2022. Under the mission, the government is building more than two crore new affordable housing units in selected urban locations across India. The construction of these houses is already underway in several states, including West Bengal, Tamil Nadu, Maharashtra, etc. With these houses, the Government of India aims to eradicate poverty and uplift the living standards of the poor.
- Subsidy on home loan interest rate
The government provides subsidy on home loan interest rate under the CLSS (credit-linked subsidy scheme), which is an inherent part of the Pradhan Mantri Awas Yojana. The percentage of the subsidy differs based on the income category you belong.
- Slum rehabilitation
The PMAY is a meticulously planned scheme that benefits the citizens and the economy. The primary objective of the scheme is to eliminate the slums and replace them with pucca houses, especially in the urban locations that significantly contribute to the GDP of the country.
The government aims to collaborate with the several private builders to build affordable homes, and encourage the affordable housing segment in the country. The government is also providing exclusive benefits to affordable housing developers.
- Helps secure the financial future of women
Another significant feature of the Pradhan Mantri Awas Yojana is that it is touted as one of the most women-friendly government initiatives. As per the scheme mandate, if a married man applies for a home loan under the PMAY, then he must compulsorily include his spouse’ name as a co-applicant of the loan, irrespective of whether she contributes in repayment. This means the spouse becomes a co-owner of the home. This is done to ensure financial security to the women, especially when they grow old or become widowed.
- Preference for senior citizens, and minorities
The PMAY has special provisions for salaried women, transgender, widows, and people from the minority community. During the house allocation phase, women and people from minority groups will be given preference. Also, the houses on the ground will be allocated to senior-citizens and people who are differently-abled.
- Environment-friendly houses
The developers of the affordable houses are strictly instructed to use only eco-friendly construction materials and techniques. This is done to limit the damages caused to the environment around the construction area and reduce the pollution scale and debris.
Additionally, all homes constructed under the scheme will have basic amenities like supply for clean drinking water, 24×7 electricity, gas connection, and sanitation facilities to promote healthy and safe living.
Now that you are aware of the features and benefits of the PMAY scheme make sure that you know your eligibility and apply for a housing loan under the appropriate category to get interest subsidy. Getting a loan under the PMAY scheme is a great way to take your first step towards accomplishing your dream of becoming a homeowner.
