Buying a home is a dream that most people nurture, but making it a reality is something that many people struggle with. Right from finding the perfect abode to arranging the finances, the home buying/ process can be a bit overwhelming, to say the least. The government tries to ease this struggle with various home loan schemes, but there still lacks enough information on how you can avail of these schemes.
If you have recently forayed into the residential real estate and wish to buy a flat in Mumbai, the Pradhan Mantri Awas Yojana can help you make your dream come true. Let’s find out how.
What is the Pradhan Mantri Awas Yojana?
The Pradhan Mantri Awas Yojana was launched on 25th June 2015 by the Hon’ble Prime Minister of India, Mr. Narendra Modi. The scheme empowers women by enabling them to own a house in their name or under joint ownership. The scheme also gives preference to lower-income groups, single women, minorities, transgender, and scheduled castes and tribes by helping them own a house in their name.
The housing scheme was put in place to address the shortage of pucca housing among the eligible households in the EWS (Economically Weaker Section/LIG (Low Income Group) and MIG (Middle Income Groups) categories by 2022 on the 75th anniversary of India’s independence.
What Benefits Can You Expect from the Pradhan Mantri Awas Yojana?
The Pradhan Mantri Awas Yojana can offer you the following benefits:
- A subsidy interest rate of 6.50% p.a. on housing loans for a loan tenure of 20 years under the Pradhan Mantri Awas Yojana2.
- Ground floor residential units for senior citizens and differently-abled home buyers.
- Scheme to cover all urban areas, including 4041 legislative towns; priority to be given to 500 Class-I cities.
- Homes built with safe and environment-friendly technology.
How do You Know if you Qualify for the Pradhan Mantri Awas Yojana?
- If you fall in any of the following income groups, you can use the scheme to buy a home:
- Economically Weaker Section (EWS) – People in the Economically Weaker Section (EWS) earning up to ₹3 lakhs annually qualify for purchasing a house under the Pradhan Mantri Awas Yojana.
- Lower Income Group (LIG) – If your annual income is between ₹3 lakh and ₹6 lakh, you can avail of the scheme under the Lower Income Group (LIG) category.
- Middle-Income Group I (MIG I) – If your annual income is between ₹6 lakh and ₹12 lakh, you will come under the Middle-Income Group I (MIG I) and can avail of the scheme3.
- Middle-Income Group I (MIG II) – With an annual income between ₹12 lakh and ₹18 lakh, you will come under the MIG II and qualify for the PMAY.
Eligibility under the Pradhan Mantri Awas Yojana
- A family that includes the wife and husband along with any unmarried children, both sons and daughters, can be a beneficiary under the scheme.
- Only a family that does not own a pucca house in any part of the country can be a beneficiary under the scheme.
Some other Important Details that You Should Know
In addition to the information above, the following rules also apply:
- If a married couple wishes to avail of the scheme together, they can opt for a single as well as joint ownership. However, they will receive only one subsidy.
- The beneficiary family should not have availed of any other housing-related schemes of the Government of India.
The Illustration of the Pradhan Mantri Awas Yojana
If an individual from the Economically Weaker Section (EWS) category needs a housing loan from a bank or housing finance firm for purchasing a home, they can avail of a 6.5% interest on the loan amount of up to ₹6 lakhs. The same is applicable from the Lower Income Group (LIG) category.
If a beneficiary from the Middle-Income Group (MIG)-I wants to buy a house with a loan, they are eligible for a 4.0% interest on the loan amount of up to ₹9 lakhs. A beneficiary from the Middle-Income Group (MIG)-II avail of an interest of 3.0% on a loan amount of up to ₹12 lakhs.
It is important to note that while the beneficiary may choose to build a larger house than the designated sq.m carpet area under each of the categories, the interest subvention will be limited to first 6 lakhs4 only.
To Sum it Up
The Pradhan Mantri Awas Yojana can be of considerable help to buy a flat in Mumbai, a city where real estate can be an extremely costly undertaking. You can use this scheme and own the house of your dreams in a hassle-free way.
This article is based on the information publicly available for general use. We do not claim any responsibility regarding the genuineness of the same. The information provided herein does not, and is not intended to, constitute legal advice; instead, it is for general informational purposes only. We expressly disclaim any liability, which may arise due to any decision taken by any person/s basis the article hereof. Readers should obtain separate advice with respect to any particular information provided herein.