Unlock the Door of Your Dream Home with PMAY
Not long ago, hundreds and thousands of people would work day in and day out, with the aim of saving enough money which could help them buy a modest home. While only a few of them could actually buy it, even they could only realise their dream at a fairly ripe age. The rest, most of which belonged to low-income groups, never saw their dream convert to reality. Thankfully for us, that time is well into the past, and the present looks much more promising.
Wondering how you can purchase a home when you don’t have a hefty income to boast of? Well, here is your answer – Pradhan Mantri Awas Yojana (Urban) or PMAY (Urban). Launched under the aegis of the current Prime Minister, Mr. Narendra Modi, this scheme is dedicated to helping the urban poor of the nation.
The scheme aims at offering as many as 2 Crores affordable houses for this segment of the society, by March 2022. In a bid to help the government in this well-intentioned scheme, a large number of leasing banks are now offering Home Loan under the PMAY Scheme.
Here is all you need to know about one of the Best Home Loan Provider in India, i.e., PMAY, which can help you unlock the door to your dream home.
Who is covered under PMAY(Urban)?
The scheme covers all people living in urban areas, belonging to the following sections:
Economically Weaker Sections (EWS): Wherein the annual income of the household is 3 LakhS or less. To qualify under this class the size of the proposed house must be 30 square metres or less.
Lower Income Group (LIG): Wherein the annual income of the household falls in the range of 3 Lakhs to 6 Lakhs. To qualify under this class the size of the proposed house must be between 30 to 60squaremetres.
Middle Income Group (MIG): This class has further been divided into two sub-sections, namely MIG I and MIG II.
To qualify under MIG I, the household income of the borrower must be in the range of 6 Lakhs to 12 Lakhs and the proposed house must be 160 square metres or less in size.
As far as MIG II is concerned, the borrower needs to have a household income in the range of 6 Lakhs to 12Lakhs. In this case, the house must be up to 200 square metres in size.
The PMAY Scheme dictates that all the people who reside in the urban areas, as per the 2001 census. Every family is eligible to avail one loan under this scheme. For the purpose of this scheme, Family has been defined as a Husband and Wife, with their Unmarried Sons and Unmarried Daughters. In order to be eligible for the loan, the borrower or any member of the borrower’s family must not be the owner of an existent pucca house in any part of the nation.
What are the benefits of the PMAY (Urban)?
PMAY is essentially a Credit-Linked Subsidy Scheme or CLSS, and therefore allows a subsidy in interest. As per this scheme:
Borrowers belonging EWS and LIG segments are eligible to avail an interest subsidy of 6.5%, subject to a maximum loan amount of 6 Lakhs.
On the other hand, borrowers belonging MIG I and MIG II segments can avail interest subsidy worth 4% and 3% respectively. For the former, the cap on the loan amount is 9 Lakhs, while for the latter; the maximum loan amount on which the subsidy can be availed is confined to 12 Lakhs.
The loan can be taken for a maximum of 20 years. What makes this scheme truly attractive and fairly beneficial is the fact that the subsidy payment is paid up front.
What can be done with the loan amount?
The PMAY is known for being rather flexible when it comes to allowing a wide array of uses with the disbursed loan amount. In general, the loan amount can be used towards:
- Construction or purchase of a new house
- Construction or purchase of a new flat
- Purchase of a plot of land
- Extension of the existing house
Even if an eligible borrower has constructed purchased or extended a house with their own money, they can seek reimbursement for the costs. Moreover, eligible bowers can avail the benefits of the PMAY scheme, even if they have already Avail a Home Loan from any other bank or housing finance company.
As is evident, all the guidelines of the PMAY clearly indicate the government’s sincerity towards helping the cause of low and middle-income groups. Above and beyond that, this scheme gives hopes the thousands and lakhs of people who never thought that having their own home could be as simple and as accessible as it has become today!
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