Pradhan MantriAwasYojana (PMAY) is a home loan scheme launched by our honourable Prime Minister Shri Narendra Modi. It’s a “Housing for All” Mission for the urban area will be implemented during 2015-2022. People who belong to the economically weaker section of society, low-income group, and middle-income group of the community will be eligible for home loan and PMAY subsidy on a purchase, construction and improvement of their house. It is a credit-linked subsidy scheme (CLSS). This Yojana involves the construction of around 2 Crore houses at an affordable price by March 31, 2022.
Eligible for the PMAY subsidy
Following are the three major points that define your eligibility for PMAY subsidy
- The available family should not own a pucca house in their name or the name of any member of the family in any part of India.
- The single subsidy will be given to the married couples, either of the spouse or both together in joint ownership will be eligible for a single grant.
- The beneficiary family should not avail any housing scheme from the Government of India or any benefit under any plan in PMAY.
Important Changes Made in Pradhan MantriAwasYojana:
For the individuals who were looking for a new house and opting to go for a home loan, the Pradhan MantriAwasYojana (PMAY) comes as a delight. PMAY is a Government led scheme by which a home loan borrower gets interest rate subsidy on his outgoing EMI amount, with a view that every Indian resident can afford their dream home. Some changes made by the Government in the PMAY scheme and this article provides information in that regard.
- The Government has approved a 33-per cent increase in carpet area of houses eligible for interest subsidy under its affordable housing scheme PMAY-Urban to attract more beneficiaries. Following are the sub-categorized carpet areas:
- a) In Middle Income Group I- The Union Cabinet has allowed for an increment in the allowance of carpet area from 120 sq meters to 160 sq meters.
- b) In Middle Income Group-II- It has also augmented the limit of carpet area from 150 sq meters to 200 sq meters.
- c) For Economically Weaker Section (EWS) and the Lower Income Group (LIG) – The 30 sq. Meters carpet area limit will apply to homes situated in the municipal boundaries of 4 metropolitan cities.
- The new rules were effective from January 1, 2017 – the date on which the scheme became effective. Under the CLSS, each beneficiary can avail funding up to Rs 2.35 Lac on buying of a house under this scheme.
- Four per cent interest subsidy is available on loans up to Rs 9 Lac for homebuyers with an annual income of Rs 6-12 Lac under MIG-I plan. Three per cent interest subsidy is given on mortgages up to Rs 12 Lac for homebuyers with income between Rs 12-18 Lac per annum.
- In the recent budget, a significant financial boost has given to Pradhan MantriAwasYojana. Rs. 6,853.26 Cr has allotted in 2019-20 interim budgets as against the Rs. 6,505 Cr allocated in the previous budget 2018-19. This positive move by the Union Cabinet will not only attract more home aspirants to opt for a home loan but will also benefit the real estate sector in terms of growth.
- Subsidy available for Loan up to INR 12 Lac Loan amount over and above INR 12 Lac will attract non-subsidized interest. Whether it is the old scheme or the two new schemes, if the Loan tenure is of 20 years, the purchased property will be cheaper by INR 2.4 Lac and instalments to be paid per month will see a reduction of INR 2,200 approximately.
Existing guidelines will tend the project to a little slower in progress. Still, the Union Cabinet Minister has to come up and make some essential changes which would help the PMAY scheme to accomplish in a faster and better way. Changes that have made on the basis that many more individuals will get the benefits of PMAY-U.