How one can Own Their Dream House with PMAY

As the report suggests, the home loan market is expected to achieve a significant CAGR of around 22% to 2026. While the increasing disposable income and changing nature of the economy remained some key growth drivers, several Government schemes were another big advantage for the home loan market.

By looking at the present state of India’s real estate sector, it is evident how investing in it can benefit individuals looking for affordable housing. Amidst Government initiatives like Pradhan Mantri Awas Yojana, which solely focused on providing affordable housing facilities to the rural and urban population, one can turn their dreams into reality.

This ‘Housing for All’ mission, PMAY, is highly beneficial for individuals who are unable to afford high-value loans with immoderate interest rates. However, before availing, one should know the eligibility parameters and benefits associated with the scheme to make the most of it.

Pradhan Mantri Awas Yojana eligibility criteria

In order to get central assistance under this scheme, applicants should meet certain eligibility parameters. Whether you can apply for PMAY depends on the following eligibility factors -

• An applicant or anyone from the same family must not own a pucca house. Additionally, if any one of the family has availed other government housing schemes before, that household is not eligible for PMAY benefits.
• A borrower’s eligibility also depends on his/her income range. For instance, individuals falling under the economically weaker section should have an annual income of less than Rs.3 lakh. For LIG or low-income group, it should range from Rs.3-Rs.6 lakh, and for the MIG or middle-income group, the expected annual income is Rs.6–18 lakh.
• Women in the household need to own or co-own such properties if they belong to EWS or LIG. Female ownership is also desired for MIG-I and MIG-II beneficiaries.

Applicants meeting these parameters will be accepted by the financial institution and benefitted from the key advantages this scheme comes with.

Key benefits of PM Awas Yojana

Since the Pradhan Mantri Awas Yojana scheme’s main purpose has been to help individuals coming from low salary bunches build their dream houses, the facilities are quite remarkable. Following are some significant features of this scheme:

• PMAY subsidy: The Central Government announced that the beneficiaries would be receiving a credit-linked interest subsidy on their availed home loan where the subsidy percentage differs based on your income range.
• Beneficial for women and senior citizens: As the Pradhan Mantri Awas Yojana eligibility criteria states, co-ownership by a woman applicant from the same family is mandatory for LIG and EWS category. Having home ownership eventually helps women to lead a secure and empowered life.

Also, for senior citizens, the Government has allotted certain advantages, including providing a ground for accommodation.

• Substantial interest subsidies: The beneficiaries who are part of the PMAY list can make a substantial amount depending on their income range. However, it is advisable to calculate the EMIs before taking the home loan in order to smoothly manage other financial liabilities.
• Eco-friendly construction: In order to tackle environmental issues, the Government has decided to use eco-friendly materials to construct the houses, which is another key advantage of PMAY.

In order to maximise these benefits, borrowers can also consider opting for the pre-approved offers housing finance institutions extend to their existing customers. Since these offers are mainly available on different financial products like home loans, loan against property, etc., one can easily get decent deals on their home loan. Individuals can simply provide contact details to check their pre-approved offer.

Pradhan Mantri Awas Yojana has been extremely beneficial for both the rural and urban population living below the poverty line. With subsidised interest rates and proper assistance under this scheme, they can now manage to build their dream house.