Pradhan Mantri Awas Yojana: Benefits of PMAY 2021
Pradhan Mantri Awas Yojana or PMAY was an initiative taken by the Central Government in 2015 to offer “Housing for all”. The Government aims to offer interest rates subsidies to the lower-income group, middle-income group and economically weaker sections of the society so that they can conveniently afford home loans.
In the Union Budget of 2021, Indian Government has proposed an extension to this scheme as well as revised tax exemptions. Resultantly, prospective borrowers can avail the benefits of this scheme for a prolonged period.
An insight into the benefits of PMAY
1. Subsidy
One of the biggest benefits of PMAY is the credit linked subsidy scheme available on home loans to purchase new properties. The Government offers this scheme based on the annual income of respective households as given below:
● EWS group: Applicants with an annual family income of less than Rs.3 lakh can get subsidy of up to 6.5% against a loan amount of up to Rs.6 lakh.
● Lower Income Group: The Indian Government offers a home loan interest rate subsidy of 6.5% to the Lower Income Group on a tenor of 20 years against a loan amount of up to Rs.20 lakh. The annual household income here must not exceed Rs.6 lakh.
● Middle Income Group 1: The Government offers an interest subsidy of 4% to the MIG 1 with an annual income between Rs.6 to 12 lakh on a maximum loan quantum of Rs.9 lakh.
● Middle Income Group 2: Indian Government extends a subsidy of 3% to the MIG 2, having annual income between Rs.12 lakh to Rs.18 lakh on a maximum loan amount of 12 lakh for 20 years.
2. Housing for all sections of the society
Pradhan Mantri Awas Yojana for home loan scheme is divided into two categories, Urban and Rural. While Government offers CLSS scheme for home loan borrowers in urban location, it aims to construct pucca houses for India’s rural population with all basic amenities. Under PMAY-R, beneficiaries can avail home loans up to Rs.70,000 with an interest rate subsidy of 3%. Also, the cost of housing will be shared by the Central and State Government at 60: 40 ratio in plain areas and 90: 10 ratio in north-eastern states and UTs.
3. Added benefits for women and senior citizens
Of all other key benefits of the Pradhan Mantri Awas Yojana, mandatory female ownership of the property is highly advantageous for the women of Indian society. As per the clause, a house should be registered under a woman’s name or she must be mentioned as a co-owner of that property, even if she is not buying it.
Read Also: Check Pradhan Mantri Awas Yojana Beneficiary List for 2020–21
This will help applicants to get approval for this scheme without any challenges. Moreover, in case you avail PMAY home loan as a senior citizen, you can assuredly enjoy the benefit of ground floor accommodation as it is one of the provisions under the PMAY scheme.
Individuals who are planning to apply for a home loan under PMAY can contact a financial assistance that extends pre-approved offers. These offers streamline the loan application process and saves time. They are available on financial products like home loans, loan against property, etc. Borrowers can check their pre-approved offer by entering their name and contact number.
The PMAY offers lucrative benefits and makes availing home loans easy. However, to further enjoy the benefits of a home loan, it is also essential for the borrowers to go through the PMAY eligibility criteria thoroughly.
With detailed information, prospective home loan borrowers can maximise the benefits of the PMAY scheme and conveniently reduce their overall burden.