- PMAY scheme was launched on 25th June 2015
- Subsidized Home Loans for lower and middle-income group
- Annual income up to Rs.18 lakh to avail PMAY
- Apply for a Home Loan under PMAY
Recent surveys and government statistics have shown that there is a tremendous migration of people from rural to urban areas. Growing opportunities for earning a better livelihood and acquiring quality education have fueled this migration.
This rise in urban population has led to a space crunch and has also fueled the demand for housing. Both these factors have led to soaring real estate prices, putting the larger population at the risk of not getting affordable housing. To address this, the Pradhan Mantri Awas Yojana was launched.
The goal of the PM Awas Yojana is to provide affordable housing for all by 2022. As declared by the Prime Minister, 40% of the population live in cities and the PMAY scheme will ensure every urban citizen is empowered to own a house. Read more to know how the PMAY scheme could help you fulfill your dream of owning a house.
What is the Pradhan Mantri Awas Yojana?
Under the Pradhan Mantri Awas Yojana (PMAY) initiative, the government has extended the credit linked subsidy scheme on Home Loans for properties belonging to the Economically Weaker Section (EWS), Low Income Group (LIG) and Middle Income Group (MIG) 1 and 2. This subsidy on Home Loan interest rates can be availed for purchase of a newly constructed or resale homes, construction, or for improvement of your house.
Eligibility Criteria for PMAY
To avail the PMAY benefits, one needs to fulfill all the PMAY eligibility criteria such as One should be a first-time buyer of a house and the ownership has to be in the name of a woman or jointly with her husband to avail the scheme. You can avail PMAY for Home Loan up to Rs.9 lakh with an interest rate subsidy of 4% if your annual income lies between Rs.6-12 lakh for MIG 1 segment.
For MIG 2 segment, you can avail a Home Loan of up to Rs. 12 lakh with an interest rate subsidy of 3% if your annual income lies between Rs.12-18 lakh. It also needs to be noted that the carpet area of your house should not exceed 200 sq. meters to avail this subsidy on Home Loans.
How to Avail the Benefits of PMAY?
The Pradhan Mantri Awas Yojana has played a significant role in empowering people to realize their dream of owning a house. As per the data cited by the Housing and Urban Affairs Ministry, more than 1.65 lakh citizens have benefited from the Credit-Linked Subsidy Scheme with more than Rs.30,000 crore being funded by the government under the mission.
Once you avail a Home Loan under the PMAY scheme, the government will credit the subsidy amount directly to the beneficiary’s loan account with the help of nodal agencies. Hence, you can reduce your Home Loan EMIs to a significant extent with assistance from PMAY.
Apart from facilitating affordable purchase and construction of your house, a Home Loan also makes you eligible for certain tax benefits as per the prevailing regulations. According to the Income Tax Act of 1961, you can claim a deduction of up to Rs.2 lakh for the interest paid towards your Home Loan and Rs.1.5 lakh for the principal amount repaid in the same year.
With the government laying more emphasis on providing housing for the lower and medium sections of the society, it’s easier than ever before to own a house in your town.