The Pradhan Mantri Awas Yojana (PMAY) is a flagship scheme of the Indian Government that aims to provide affordable housing to urban and rural poor by 2022. The scheme, which focuses on ‘Housing for all’, plays an influential role in ensuring women’s ownership of Pucca house.
In addition, the Government’s decision to mandate house registration in the name of women head of the family for ownership or co-ownership has further strengthened the initiative towards women empowerment.
PMAY: Empowering Women
The Pradhan Mantri Awas Yojana is a Credit Linked Subsidy Scheme (CLSS) that provides home loan interest rates subsidies. This government-backed scheme encourages homeownership in urban and rural/gramin areas through PMAY Urban and PMAY Gramin, respectively.
The benefits of PMAY are available in the basic income category, which is divided into four segments. These include,
- Economically weaker section (ESW): (with an annual income of Rs.3 lakh)
- Low-income group (LIG) (with an annual income of Rs.3 lakh – Rs.6 lakh)
- Middle Income Group- I (MIG-I) (with an annual income of Rs.6 lakh – Rs.12 lakh)
- Middle Income Group- I (MIG-II) (with an annual income of Rs.12 lakh to Rs.18 lakh)
According to the latest PMAY- U guidelines released in 2021, families applying for PMAY must include one woman as the property owner availed under the scheme. However, if the house lacks any adult female members, the ownership will be transferred to the male member.
The inclusion of the name of the female head is ensured through valid registration of title or sale deed or ownership of the property. This inclusion of name in the PMAY Urban scheme shall be continued even after 2022.
Benefits For Women
This government-backed scheme has empowered women, especially those from ESW and LIG households and provided affordable pucca houses and the provision of basic amenities. Also, this scheme ensures other benefits. These include,
The Government offers subsidies of up to Rs.2.67 lakh to women applicants. However, to avail this benefit under PMAY, women applicants must be and first-time home buyers.
Decreased Interest Rate
Female borrowers applying for a home loan under PMAY usually get concessional interest rates. There are several lenders that offer affordable home loan interest rates for women under PMAY.
Moreover, leading financers extend pre-approved offers to simplify the home loan application experience. These offers are also applicable to other financial products, including loans against property. Individuals can check their pre-approved offers by providing name and contact details.
PM Awas Yojana offers tax benefits, including a deduction of interest up to Rs.2 lakh per annum. Here, the owned house must be self-occupied. If the application is made jointly by husband and wife and if the wife has a separate source of income, both can apply for tax benefits. However, tax deductions will be calculated depending on the ownership of each co-owner.
Reduced Stamp Duty and Registration Charges
Several state governments have come up with the decision of partial waiver on stamp duty and registration charges. Further, the Government offers an exemption of these charges for women belonging to ESW and LIG sections under PMAY-U. Thus, women can benefit from taking home loans under the PMAY scheme.
Please note that women applicants who have applied for this scheme can check the PMAY list. In addition, the PMAY list has been published, which shows the selected applicants from 2021-22.
The benefits of PMAY are available for women irrespective of caste (SC and ST category), marital status (single, widow), physical ability or employment status. This is evident from the 2018 publication of ‘Transforming Urban Landscape- Empowering Women through PMAY’ by the Ministry of Housing and Urban Affairs (MoHUA). It showcases the stories of 35 women across the country who gained social security and dignity by shifting from their kutcha to pucca house under the PMAY scheme.