What is PMAY? Know the Facts about its Subsidy

Data suggests that housing finance companies that focus solely on affordable housing have grown at 26% in 2020, which is significantly more than other HFCs. This indicates growing popularity among buyers for houses listed under the Pradhan Mantri Awas Yojaa. Apart from affordability, the beneficial features of the PMAY initiative also played a major role in popularising affordable homes.

PMAY Gramin falls under one of those Government launched schemes, which had the sole motive of providing affordable housing facilities to individuals living below the poverty line. In order to fulfil the ‘Housing for All by 2022’ mission, the Government of India promised to offer fully constructed pucca houses with all the basic amenities. And, under this particular scheme, financial institutions have been offering housing loans at subsidised interest rates to assist the rural population.

Important aspects to know about interest rate subsidy under PMAY G

Individuals planning to buy a home soon should acquire detailed information regarding how home loan interest rate subsidies work under this PMAY. Here are a few pointers to help individuals assess such benefits.

• Beneficiaries can avail home loans up to Rs.70,000 under this particular scheme from financial institutions. However, the subsidy of 3% on the interest rate is available on a maximum loan amount of up to Rs.2 lakh.
• Under this PMAY, the interest rates are lowered automatically. The maximum subsidy amount is limited to around Rs.38,500. In order to make the repayment process easier, borrowers generally look for ways to reduce home loan tenor and EMI. Interest subsidies can help lower EMI significantly. Also, the flexibility to choose a loan tenor of up to 20 years reduces repayment burden further.
• Even when the loan quantum is higher than Rs.2 lakh, the subsidised rate would be applicable to only this cut-off and not on the exceeding amount.

Even though the features and benefits are quite alluring, the Government has set a few eligibility parameters for this particular scheme. In order to avail all these benefits, know the PMAY eligibility criteria here:

• Individuals belonging to scheduled caste or tribe, and other minority categories will be benefitted from the features of PM Awas Yojana.
• Households with a disabled member will be eligible for this scheme benefits. If there is no male adult member aged between 19 and 59 years in the house or a literate adult aged at least 25 years, such a household is eligible to claim benefits.
• Individuals living in a kutcha house with two rooms will also be eligible for PMAY Gramin. However, if anyone from the same family owns a pucca house in any part of the country, they will not be able to make it to the PMAY list.
• In terms of income range criteria, those earning Rs.10,000 or more will not be eligible.

Individuals meeting all these parameters can avail funds to meet their necessary requirements and expect to utilise the benefits PMAY offers. The application procedure is also quite simple, where individuals can simply use the official website of Pradhan Mantri Awas Yojana — Gramin or contact their respective ward or Gram Panchayat.

Read Also: Pradhan Mantri Awas Yojana: Benefits of PMAY 2021

These days, financial institutions are coming with pre-approved offers to make financing a lot more hassle-free. These offers are generally available on financial products like home loan, loan against property, etc. Individuals can simply check their pre-approved offer by submitting name and contact details and get better deals on their home loans.

From financial assistance to construct a pucca house to eco-friendly housing facilities, PMAY Gramin comes with a lot of advantages for India’s rural population. The construction is also done by keeping socio-economic and geo-climatic factors in mind, which help beneficiaries to lead a comfortable life.