Buying a home is no more a luxury but a necessity. Considering the number of homeless people in India and their weak financial status, the Central government, under the direction of PM Narendra Modi, launched a communal welfare scheme Pradhan Mantri Awas Yojana, in 2015.
This scheme’s most significant aspect is offering home loans to the weaker segments of society at subsidised interest rates. These segments include EWS, the Economically Weaker Sections; MIG, the Middle-Income Groups; and LIG, the Low-Income Groups. Affordable housing is one of the key areas of focus of the current government, and all efforts are directed to motivate as many people as possible to take advantage of such schemes and own a house.
Here are some of the advantages of acquiring home loans under the pradhan mantri awas yojana benefits
Benefits of taking Home Loans under the Pradhan Mantri Awas Yojana (PMAY)
Here are some of the core advantages of PMAY home loan schemes:
Eco-friendly Homes
If you are looking for a home loan for construction houses, you can rest assured of the construction material and technology used to build homes. These materials are selected to reduce environmental damage, provide long-term durability and protection, and check pollution levels. It is one of the benefits of acquiring loans under PMAY.
Women Empowerment and Welfare of Senior Citizens
One of the key benefits of PMAY is that it is a woman-oriented scheme. If you opt for a home loan under Pradhan Mantri Awas Yojana, it is mandatory to name the house deeds in the woman’s name (wife/mother). This provision is extended to working women, transgender, widows, minorities, the disabled, and senior citizens.
Another provision under the scheme is to provide ground floor construction properties for senior citizens.
Upliftment of the Standard of Living
PMAY focuses on the weaker segments of society. All strata of people, all castes and creeds, and various sections of people belonging to different financial segments can apply for such home loans and get the advantage of affordable housing in prominent urban areas for those eligible for encumbrance certificates.
Subsidised Interest Rates
A generous amount of interest subsidies is available to all sections of society (for the eligible ones) under the government-initiated Pradhan Mantri Awas Yojana. You get a credit-linked subsidy that depends on the income that you earn. The primary considerations and benefits include the following:
- Rehabilitation of people living in the slums
- Collaborations that induce affordable housing
- CLSS scheme (Credit-Linked subsidy scheme)
- Home constructions
- Home Improvement
Sections of people that fall under PMAY (urban), CLSS of PMAY (Urban), and PMAY (rural) are covered.
Benefits of Pradhan Mantri Awas Yojana
Here are the benefits that different sections of people can enjoy under PMAY for home loans and home improvement loans:
MIG 1 (Middle-Income Groups)
The subsidised rate of interest can be as low as 4%, and the maximum subsidised interest amount can be Rs. 2.35 lakhs. The maximum home loan amount available on the subsidised rates is Rs. 9 lakhs. The maximum home loan tenure is 20 years. The maximum carpet area is 160 sq. m. For this, your annual household income should be between Rs. 6 lakhs – 12 lakhs
MIG 2 (Middle-Income Groups)
For this group, the interest rate can be as low as 3%, and the minimum household income requirement varies between Rs. 12 lakhs to 18 lakhs. The maximum subsidised interest amount can be Rs. 2.30 lakhs, with Rs. 12 lakhs as the maximum home loan amount available on the subsidised rates. The maximum carpet area is 200 sq. m.
LIG (Low-Income Groups)
To secure a home loan under this category, your annual household income should be Rs. 3 lakhs – 6 lakhs. The subsidised rate of interest is 6.5%, and the maximum subsidised interest amount can be Rs. 2.67 lakhs. The maximum carpet area is 60 sq. m. while the maximum home loan amount on the subsidised rates is Rs. 6 lakhs.
EWS (Economically Weaker Sections)
The advantages provided to the EWS group are more or less similar to the above-mentioned LIG group. The only points of difference are that annual household income should be up to Rs. 3 lakhs, and the maximum carpet area is 30 sq. m.
Conclusion
Considering the various benefits of Pradhan Mantri Awas Yojana, it has become a very popular scheme for Indians. Several people from different sections of society depend on such housing schemes to own their homes and lead a financially sound life.