Under the Central Government’s Pradhan Mantri Awas Yojana or Prime Minister’s Scheme for affordable housing, Indian citizens who have limited income sources can now avail a lower home loan interest rate and develop their own homes. It is one of India’s most pressing needs as over-population and slumming have become roadblocks in the country’s economic development.
There are two parts of the program: PMAY-U for urban areas and PMAY-G for rural areas. Together, these promise to provide affordable ‘housing for all’ by 2022. An estimated 65 lakh pucca or concrete houses have been sanctioned under the PMAY-U program. Of these, around 35.49 lakh houses are under construction. Moreover, 12 lakh homes are already occupied while another 12 lakh are waiting for their new owners to move in.
The plan is ambitious and the signs of success are evident. States like Gujarat and Madhya Pradesh are already showing a lower number of existing slums.
You can avail a home loan under the scheme from respected financial institutions provided you are eligible for it. You must also use a calculator to check yourself for PMAY eligibility before you apply for an advance.
Regardless of whether you live in an urban or rural area, you can avail the PMAY scheme provided you fulfil certain criteria. They are as follows:
- You are not covered under PMAY eligibility if you own a concrete house anywhere in the country at present.
- You will receive financial aid in constructing a new home if you are economically distressed and belong to the EWS section. To qualify as being economically weak, your household income must not exceed Rs 3 Lakh per annum. You will then fall under the Lower Income Group or LIG.
- Lastly, you will receive interest rate cuts if you fall in the MIG category. These are individuals who have incomes between Rs 3 and 6 Lakh (or MIG 1) and all those with household incomes between Rs 12 and 18 Lakhs (or MIG-2)
Besides, all these categories are also eligible for CLSS, where a direct subsidy is provided to the applicants. This form of direct transfer is promising because one of the fundamental promises of the PM Awas Yojana was to eradicate middlemen.
Note that taking a loan under the scheme does not mean that you do not have to repay the remaining amount in EMIs. It is best to use a home loan EMI calculator to determine how much you need to set aside each month.
After applying for the PMAY Scheme, you can check if your name is present in the PMAY List or not. This list will show the names of individuals whose applications have been accepted.
The overall reports that have been pouring in since 2017 are encouraging. Under the PMAY-G, around 60 Lakh houses stand completed. Most of them have also been occupied and the legal transfer of the property papers and other formalities are already over.
The Central and State Governments are now focusing on creating a sustainable and economical drainage and sewage treatment system in these rural areas. These are 2 major issues which villagers and suburban residents complain about.
This latter issue has been addressed by the respective State governments. There are several drought-prone states like Rajasthan which are yet to face the high standards set by Gujarat and MP, however.
If you live in urban areas and fulfil all PMAY eligibility conditions, the statistics indicate even better progress. The PMAY-U reports state that most female applicants have already received their new houses. Besides, most of the concrete houses already have their occupants.
Before applying, ensure you check your eligibility using the home loan eligibility calculator.