Owning a home of their own is one of the biggest dreams in one’s life. After being displeased by living in rental apartments for years, people are now widening their objectives to buy a property. But this still remains a dream for most of the people as they are sick of paying monthly rents, bills, debts and managing daily expenses.
Being tied to this cycle of rental life for decades, an assumption of thousands of steps back from owning a property has imprinted in their minds for eternity. But this scenario has come to a stop after the Pradhan Mantri Awas Yojana scheme came into the act in India. This scheme ensures that the citizens nationwide get to own affordable houses within their financial affordability. But what does this scheme mean? What are the benefits of Pradhan Mantri Awas Yojana scheme actually providing the citizens of India?
What is Pradhan Mantri Awas Yojana?
Pradhan Mantri Awas Yojana is the scheme that ensures housing for all. The Indian Government that makes sure that it provides affordable housing for the urban poor within their financial means. In simple, PMAY Scheme is launched with the motive of “housing for all”.
Benefits of Pradhan Mantri Awas Yojana Scheme:
The PMAY scheme is launched with the liberal rate of interest as it is only applicable to the Economically Weaker Sections (EWS) and Low-Income Group (LIG) people of India. In this scheme, the Central Government would grant a subsidy for the people under these two categories. The funding support ranges from 1 and 2.3 lakhs which should be used only for the possession of the property under this scheme.
The rate of interest
The main advantage of the PMAY scheme is the subsidized rate of interest. The eligibility criteria for availing this scheme should be from either the LIG or the EWS segments. As this decrease in the rate of interest is extremely substantial in the PMAY scheme makes it easy for the borrowers to make the monthly instalment payments effortlessly.
For example, Mr.Chandru availed a loan amount of Rs. 6, 00, 000 lakhs to buy an affordable flat for sale in OMR for 6.5% of the rate of interest, whereas the market price was 10.5% at the time when he availed the loan. By availing loan under this scheme actually decreased the EMI amount he had to pay. The period of interest actually lasts up to 15 years from the date of his loan dispersed. If you would like to borrow above 6 lakhs, then you might be paying the normal rate of interest with the amount increased.
Females are no exception to this scheme
Preference is given to the female members as well under this PMAY scheme. Particularly, female applicants are given a bit more priority than the male applicants, which makes the scheme a pro-women one. Even applicants with no male members in the family can avail this scheme doubtlessly. This makes more advantageous in terms of a female who leads a family.
Preference for the aged and Disabled
This scheme covers the ground floor housings too. This means, given the preferences for both aged and physically disabled members like any other LIG & EWS members.
Renovation & extension is possible
A person from the LIG & EWS segments can also avail home loan for construction or renovation of the already existing property other than buying homes from the government’s affordable housing societies. In case of further extensions, the carpet area should be 30 sq metres for the EWS category and 60 sq metres for the LIG segment members. If these terms are not satisfied, then the loan would not be granted to the applicant.
Due to several financial constraints, people are a few steps back from owning their own property in the society. Out of many schemes in India, this proves worthy to put some light on their dreams to become true. This way, the slum areas are developed with the private contributions as well. People in India can now use this opportunity to own a property in Chennai, Bangalore, Hyderabad, and other major cities of India.