The PMAY or the Pradhan Mantri Awas Yojana is one of the most popular and ambitious housing initiatives launched by the government of India. The scheme was announced in June 2015 as part of the government’s ‘Housing for All’ mission.
One of the primary objectives of the mission was to provide a permanent residential unit to all eligible beneficiaries, especially from the lower income groups by the year 2022. It also aimed to end the slums in India and upgrade the standard of living of the people. To achieve its mission, the government has started building affordable housing units across various cities in India.
Apart from building new homes for the poor, under the CLSS (Credit Linked Subsidy Scheme), which is an integral part of the PMAY, the government aims to provide financial assistance to first-time home buyers. The assistance is given in the form of a subsidy on the home loan interest rate. To ensure that everyone gets the subsidy benefits, the government has collaborated with various financial institutions to roll out the benefits.
Since its launch in June 2015, the Pradhan Mantri Awas Yojana has benefitted several aspiring home buyers and home loan applicants. Many people have availed the subsidy and managed to purchase their dream home.
If you are looking to purchase a home, you can make your dream of being a homeowner alive by applying for a home loan under PMAY and get the subsidy benefits. However, you must meet specific eligibility requirements to get the subsidy, which are listed below.
One of the important criteria to get the interest subsidy on home loans under PMAY is that you or any other family must not have a permanent house registered in their name in any Indian city.
Apart from the PMAY housing scheme, which is a central government of India initiative, many state governments offer financial aid to the residents; they have their own affordable housing scheme. However, if you want to avail of a PMAY subsidy on home loan interest rate, you or any of your family must not have benefited from any other scheme.
If you are a married individual and want to apply for home loan subsidy benefits under PMAY, you can apply for a loan individually or you can apply for a joint home loan with your spouse. However, together you would be eligible to get a single subsidy.
Another important PMAY requirement you must fulfil to get the subsidy benefit is to register the property you want to buy in the name of a female family member either a sole owner or co-owner of the property. This criterion is mandatory if you apply for the benefit under EWS and LIG category. However, if you are applying for the loan under MIG category, it is optional.
One of the main reasons for this mandate is to empower the women in the family and secure their future in the event of their husband’s demise in the future.
You can get the PMAY subsidy benefits for buying, construction, extension, and renovation of your home.
The PMAY scheme is a major boon for all aspiring home buyers as it makes the repayment of the home loan easier. Know about the policy benefits and take advantage of the same in your home buying endeavour.