Finance

Important Features of the Pradhan Mantri Awas Yojana (PMAY)

The rising costs of properties in India make it challenging for economically weaker sections of society to invest in real estate. However, the situation has been better with the launch of Government-backed schemes like Pradhan Mantri Awas Yojana that aims to cater to the housing needs of urban and rural populations.

The scheme was introduced in 2015, with the purpose of constructing 2 crore houses by 2022, mainly for the economically challenged section of society and low-income groups. It also enables them to get subsidised interest rates on their home loan. However, before moving forward, individuals must know about Pradhan Mantri Awas Yojana eligibility and features in-depth to make the most of it.

Features of PMAY scheme

Here is a list of all the salient features of this housing scheme:

  • Under this scheme, all the ‘kutcha’ houses that have been plaguing both the rural areas and metro cities will be replaced with permanent concrete houses by the Central Government.
  • Depending on the individual’s income, a credit-linked interest subsidy (CLSS) will be provided on every new house purchase. Beneficiaries from the PMAY list can opt for a home loan under this scheme and enjoy the subsidised interest rate of 6.50% for a term of 20 years.
  • The houses will be constructed with eco-friendly materials.
  • The scheme has made female homeownership a mandatory clause; therefore, the house must be registered under female heads of the family.
  • Under PMAY, senior citizens and differently-abled individuals meeting the Pradhan Mantri Awas Yojana eligibility criteria will be aided with compulsory ground floor housing accommodation.
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In order to reap the benefits of this scheme, individuals must meet the PMAY eligibility criteria. Note that the home loan sanctioning and disbursement process under this particular scheme is also linked with these eligibility parameters, set by the Central Government. To avoid loan application rejections, go through the following section containing all these parameters.

Eligibility criteria of PMAY

Following are the parameters one must meet to become a part of the PM Awas Yojana list:

  • The applicant should not receive any Central Government assistance related to a housing scheme.
  • Both the applicant and his/her family members must not own a pucca house in any part of the country.
  • The benefits of PMAY will be available only for households with an annual income of up to Rs.18 lakh.

Now that you are aware of PMAY eligibility parameters, here is a guide regarding the online application process for this scheme.

Step 1: Start by visiting the official site of PMAY.

Step 2: Open the ‘Citizen Assessment’ tab and choose a category as per your economic background.

Step 3: Next, you will be required to fill up a PMAY application form. Make sure to provide accurate personal and professional details, bank account information, etc.

Step 4: Here, you will have to enter the security captcha code and click on ‘save’.

Step 5: You will get an application number; make sure to save or print it for future reference.

Applying for housing loans under PMAY is beneficial for multiple reasons, and one of them includes the reduction of home loan interest rates.

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However, to reduce interest rates, you should also look for pre-approved offer provided by reputed financial institutions. These offers are available on several financial products, like home loans, loans against property, etc. To check your pre-approved offer, you just have to provide your name and contact details.

Becoming a homeowner has become easier with the availability of such housing schemes, and individuals can also make substantial savings while investing in residential properties. However, besides meeting Pradhan Mantri Awas Yojana eligibility, make sure to go through the terms and conditions of this scheme to avoid complications later.