3 Things You Must Know about Pradhan Mantri Awas Yojana

In June of 2015, Prime Minister of India launched a scheme called Pradhan Mantri Awas Yojana with the objective of providing “Housing for all” by the year 2022. If you are eligible to avail this scheme, not only can you buy a new home for your family, you can also renovate or extend your house and make it better than before. However, to be eligible and fully able to utilize the benefits of PMAY yojana, there are certain things that you must know about this scheme. Following are the points:

1. No Processing Fee

The objective of PMAY yojana is to provide housing for all, especially to people who are not financially strong enough to buy a house. There is no registration fee or any kind of fee involved anywhere in the process. The whole modus operandi of PMAY is transparent and no individual working in the scheme is allowed or has the authority to charge any kind of fees. The whole process is free, and for all applicants. No exceptions.

2. Tenure of the Loan

Under the PMAY, the stipulated tenure of the loan is 20 years. Yet, it is not a rigid number, only the maximum period in which one has to repay subsidized loan. If an individual can repay the loan in shorter amount of time and so as to reduce their interest, they are allowed to do that as they are comfortable.

3. Not all Banks are Part of PMAY

One of the common myths about PMAY Yojana people have is that all banks are part of it and they can get subsidized home loan from any bank. That is not true. Only some banks are associated with PMAY. Similarly, not all real estate developers are associated with PMAY either. To know the list of banks and real estate developers associated with the project, visit the official PMAY website.

Since its launch PMAY has been gradually reaching towards its goal to provide housing for all. And the rate at which it is currently working, it will. So, if you want to avail the benefits under PMAY, you have must know the aforementioned things about it.

Some Noteworthy Benefits of PMAY

What is Pradhan Mantri Awas Yojana?

As we all know that having a house is a basic necessity for everyone, but it involves a significant amount of money, making it difficult for the people who fall in the category of Low Income Group (LIG), Medium Income Group (MIG), and Economically Weaker Section (EWS). Launched in June 2015, PMAY Yojana is an attempt by Indian Government to build affordable ‘pucca’ house with round-the-clock water and electricity supply along with sanitation facility for everyone.

Here are a few benefits of PMAY Yojana.

1. Housing for Everyone: According to PMAY Yojana, government will build around 2 crores houses across the entire country. Many states like Tamil Nadu, Maharashtra, Bengal, Jharkhand, and others have been covered under this scheme. The prime objective of this scheme is to provide affordable housing for urban poor and rural poor.

2. Special Advantages for Women: Women who fall under low income group can avail special benefits from PMAY Yojana. Few banks also provide special housing loan rates to women homebuyers. These rates vary according to the profession of the women homebuyer as well as the amount of finance borrowed by them. Women will also get special concession on the interest rates by banks. This concession is around 0.05 per cent as compared to the male counterparts.

3. Benefits for Senior Citizens and Transgender: Under PMAY, benefits will be given to transgender and senior citizens. The houses for elderly people will be provided on the ground floor for physical comfort.

4. Subsidized Loans: Another major benefit of PMAY Yojana is the subsidized home loans. In today’s time, the interest rate of housing loan is around 10 per cent. But, in PMAY Yojana, 6.5 per cent of subsidy will be given to every individual. This implies the huge reduction in EMIs.

With all the benefits provided by PMAY Yojana, it is clear that it is not just helpful for the general public of the country, but will also play a key role in the development of the nation. Further, it will empower Indian citizens to buy a home of their own, and at the same time provide an extreme level of comfort, especially for the people residing in rural areas of the country.