Everyone wants their own home, but the problem in India is that the price of property is continuously increasing, due to which the cost of constructing a house also increases.
So
the government is coming forward with various teams related to housing loans.
One of which is Pradhan Mantri Awas Yojana (PMAY). In this scheme the
government has set the target of “Housing for all by 2022”.
What is Pradhan Mantri Awas Yojana (PMAY) scheme?
It
was launched in June 2015 and popularly known as “Housing for all by 2022”.
In
which the government has put a target of constructing houses for all
Indian needs by 2022. The government has set the budget and is desperately
working to achieve that.
Under
the scheme the government has targeted to construct more than 2 crore houses
for Indians.
Those
who want to construct houses under the scheme can take loan from
bank on interest subsidy.
It
means those who take loans under Pradhan Mantri Awas Yojana will get the
benefit of interest subsidy.
But
interest subsidy is given only to the persons covered under following sections:
- Economic weaker section (EWS)
- Lower income group (LIG)
- Middle income group (MIG)-I
- Middle income group (MIG)-II
What is a Credit- Linked Subsidy Scheme (CLSS)?
The
interest subsidy received under Pradhan Mantri Awas Yojana is also known as
credit linked subsidy scheme. For understanding interest subsidy, let us
take one example:
If
you want to construct a house it costs rupees 50 lakh. You want to take a
loan of rupees 40 lakh, and the interest rate is 9% per annum.
Suppose
interest subsidy on rupees 9 lakh at the rate 6%, then out of a loan
of rupees 40 lakh, you have to pay interest of 3% on 9 lakh only and all
remaining rupees 31 lakh interest is 9% so in this way you will get 6%
interest subsidy on rupees 9 lakh.
What is the income wise category of various economic groups?
For
availing interest subsidy under Pradhan Mantri Awas Yojana, you have to cover
under any of the following economic group:
|
Economic
Groups |
Annual
Family Income Range (In rupees) |
Eligible
Subsidy (%) |
|
Economic
weaker section(EWS)
Lower
income group (LIG)
Middle
income group (MIG)-I
Middle
income group (MIG)-II |
Upto 3
Lakh
3
Lakh to 6 Lakh
6
Lakh to 12 Lakh
12
Lakh to 18 Lakh |
6.5%
6.5%
4%
3% |
In
the above table it is concluded that whose income is greater than rupees 18
lakh is not eligible for taking interest subsidy. For calculating annual
income, income of the whole family is to be considered.
It
means before you apply for this scheme you should know that whether you are
covered under the range of income otherwise you will not get the benefit of
interest subsidy.
What are the
two types of housing scheme under Pradhan Mantri Awas Yojana (PMAY)?
There
are two type of housing scheme which is depending on the area wise:
Pradhan Mantri Awas Yojana - Urban (PMAY-U)
PMAY-U
targets the urban area for construction of houses for various economic groups.
PMAY-U covers various cities and towns in India.
The
government is continuously achieving the target of giving interest subsidies to
large people and fulfilling the target of “Housing for all by 2022”.
Pradhan Mantri Awas Yojana - Gramin (PMAY-G)
PMAY-G
targets the villages, slums and other rural areas so Pradhan Mantri Awas Yojana
not only targets the urban population but it also focuses on rural
areas.
Government
has given various advantages to rural areas.
Tables
show various features / offers given to rural and urban residences.
1. Economics Weaker Section & Lower Income Group
|
Features |
Economics
Weaker Section (EWS) (Amount
in rupees) |
Lower
Income Group (LIG) (Amount
in rupees) |
|
Family
Income Range
Eligible
Interest Subsidy
Loan
amount upto Interest Subsidy allow
Maximum
Loan repayment period
Maximum
amount of Interest subsidy
Maximum
dwelling unit carpet area |
Upto 3
Lakh
6.5%
p.a
6
Lakh
20
years
2.67
Lakh
30
sq. m |
3
Lakh to 6 Lakh
6.5%
p.a
6
Lakh
20
years
2.67
Lakh
60
sq. m |
2. Middle Income Group (MIG-I) and (MIG-II)
|
Features |
Middle
Income Group (MIG-I) (Amount
in rupees) |
Middle
Income Group (MIG-II) (Amount
in rupees) |
|
Family
Income Range
Eligible Interest Subsidy
Loan
amount upto Interest Subsidy allow
Maximum
Loan repayment period
Maximum
amount of Interest subsidy
Maximum
dwelling unit carpet area |
Between 6 Lakh
to 12Lakh
4%
p.a
9
Lakh
20
years
2.35
Lakh
160
sq. m |
Between 12 Lakh
to 18 Lakh
3%
p.a
12
Lakh
20
years
2.30
Lakh
200
sq. m |
Who is eligible for Pradhan Mantri Awas Yojana (PMAY)?
Following
are the some factor which needs to be considered for checking that you are
eligible under the scheme or not:
- For taking benefit under the scheme you should under any other economic group i.e. Economic weaker section (EWS), Lower income group (LIG), Middle income group (MIG)-I and (MIG)-II.
- Those families whose income is exceeding rupees 18 lakh per year are not eligible for taking benefit of interest subsidy under the scheme.
- The applicant or any member of the family should not possess any other house property at the time of taking home loan. It means under the scheme he should not have any other houses.
- For availing loan under the scheme it is necessary to have a woman as owner or co-owner of such property. A woman's name should be there on the property register deed papers.
- If you want to take advantage of the scheme then it is necessary that you must not have any benefit under any other housing loan scheme, it is important that you should not be part of any housing loan scheme earlier for applying in Pradhan Mantri Awas Yojana.
- If a loan is taken for the purpose of renovations or extension of the already existing house then the said work must be completed within 36 months from receiving the first installment.
What is the
procedure for applying in Pradhan Mantri Awas Yojana (PMAY)?
- If you want to apply for the PMAY scheme then you have two options, you can either go for an online method or if online is not suitable for you then you can use an offline application.
- You can apply online by visiting the official Government website for Pradhan Mantri Awas Yojana. There you find a link of ‘Citizen Assessment’ and thereby entering the Aadhaar number and filling the other details like Income, personal detail etc.
- Then an application form will generate which you have to submit your bank from which you want to take a loan under this scheme.
- But if you want to apply offline then you can visit your bank and submit the required documentation, it is very easy to take a loan under Pradhan Mantri Awas Yojana.
What are the documents required for the PMAY scheme?
Following
are the document which is necessary to provide to bank for taking loan under
the scheme:
- PAN card, Aadhaar card, Voter card, driving license etc.
- Income tax return
- Six month bank statement
- Proof of residence
- Documents of property
- In case of self-employed address proof of business
All
the above points are common in all banks however banks may demand furthermore
documents as required.
What are the
advantages and disadvantages of Pradhan Mantri Awas Yojana?
Advantages of Pradhan Mantri Awas Yojana
Tax benefit
The
main feature of Pradhan Mantri Awas Yojana is that this scheme attracts the
buyer for tax benefit.
Individuals
have many tax benefits under the scheme like you can claim deduction under section 80c upto rupees 150000 per year on repayment (EMI) of Home loan.
And
you can take the benefit of section 24B under the head house property where you
can take deduction of up to rupees 200000 on home loan interest payment.
Interest subsidy
Next
important benefit is interest subsidy; those who apply in PMAY scheme can get
the interest subsidy if they cover under any of the following income categories
- Economic weaker sections income upto rupees 3 lakh
- Low income group income between rupees 3 lakh to rupees 6 lakh
- Middle income group income between rupees 6 Lakh to rupees 12 lakh
- Middle income group income between rupees 12 lakh to rupees 18 lakh
Priorities
In
this scheme, priority is given to women where the condition is that you can
apply under the scheme only when a woman is the owner or co-owner for such
property.
This
scheme also gives priority to the minority sector with low income.
Disadvantages of Pradhan Mantri Awas Yojana
Only benefits to Specified group of income
Under
this scheme individuals having income of up to rupees 18 lakh can get the
benefit of this scheme.
Those
whose income exceeds rupees 18 lakh are not eligible for taking benefit of
interest subsidy.
Existing Property
The
applicant or any member of the family should not have any other house property
at the time of taking home loan under the scheme.
If
a family has any other existing house property then they
become ineligible under the scheme so before applying in this scheme
they should not possess any house property.
Conclusion
The
government is focusing on the objective of “Housing for all by 2022”.
Government
wants everyone to have their own house which will save their present as well as
future and that is why the government has introduced Pradhan Mantri Awas Yojana
scheme which is beneficial for everyone as this scheme is a benefit of interest
subsidy which reduces the cost of borrowing and increases the affordability.
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