The Pradhan Mantri Awas Yojana is an initiative undertaken by the Government of India to provide required financial assistance to the weaker sections and income groups of society and help them build their own homes.
The scheme provides subsidies and loans to specific target groups so that their financial inability does not obstruct their shelter dreams. While on the one hand, the scheme helps the poor and the needy, it also boosts the country’s real estate sector by initiating new constructions and purchasing of houses.
Procedure of PMAY
The PMAY provides credit-linked subsidies to the economically weaker sections of society- India’s lower and middle-income groups. Suppose a person from a lower-income group wants to purchase a house.
After the mandatory down payment of the house, the rest of its worth is arranged through a loan. The individual needs to repay the loan amount and its interest within a stipulated period.
However, under the Pradhan Mantri Awas Yojana, an added subsidy of 6.5% is provided. Thus, this subsidy is deducted from the total loan amount.
As a result, the person now has to repay only the remaining balance after the subsidy. The grant reduces the overall financial burden on the person.
Benefits of PMAY
The Pradhan Mantri Awas Yojana aims to provide housing to all sections of people through a credit-linked subsidy scheme. Here are some of the most important benefits of the scheme:
Housing Opportunity for all
The PMAY scheme provides a housing opportunity to all. It offers several credit facilities to individuals and assists them in constructing their houses. However, there are quite a few regulations for accessing this subsidy.
For instance, the applicant should not own a concrete home and should not have an annual income exceeding 18 lakhs. The applicant also needs to fulfill several other criteria to be eligible under this scheme.
Rehabilitation of slum dwellers
The PMAY scheme divides its target population into several groups- the economically weaker sections of society, the lower-income group, the middle-income group, and the slum dwellers.
The scheme aims to rehabilitate people living in slums and help them lead a better lifestyle. The scheme’s efforts to provide slum dwellers with better infrastructure, drinking water, and sanitation facilities are evident.
The housing for all scheme under the PMAY has also removed slums and rehabilitated them in concrete houses.
Large loan repayment tenure
The PMAY has a more extended loan repayment tenure for the beneficiaries. Thus, they do not face any financial burden while repaying the loan.
Housing schemes for women
The Pradhan Mantri Awas Yojana has unique benefits for women and minorities. For instance, the scheme emphasizes registering the property under a woman’s name, even if she does not directly buy it.
Furthermore, several schemes, including the lowest home loan interest rates are provided to women and transgender. Senior citizens also get housing benefits from this scheme. For instance, they are granted accommodations on the ground floors and also receive additional subsidies.