Pradhan Mantri Awas Yojana or PMAY is a scheme designed to provide affordable housing to eligible applicants by 2022. Initiated by the government, it is especially for the providing housing to urban and rural poor.
There are several benefits of PM Awas Yojana scheme which are mentioned below -
- It includes 4 major categories - Economically Weaker Sections (EWS)/ Lower Income Group (LIG), Middle Income Group (MIG I) and Middle Income Group (MIG II).
- The Credit linked Subsidy Scheme or CLSS is designed to provide housing for all. This takes into account the Net Present Value or NPV of the interest subsidy at the rate of 9%. Where, for EWS/ LIG category interest subsidy is provided at the rate of 6.5% for a tenure of 20 years. While, for MIG I and MIG II categories the interest subsidy is available at 4% and 3% respective for the same tenure.
- For any ground-floor construction under the subsidy scheme the government gives preference to aged/ senior citizens and handicapped in allotment of the property.
- The scheme states that every application must have a mandatory women applicant. It thus, gives preference to women population and thereby helps in their upliftment and security.
- Government places preference on eco-friendly construction as well. This serves the dual purpose - of getting a roof built for the needy and safeguarding the environment in the process.
In addition, make sure to get registered with PMAY. By being updated in their database you will be able to avail subsidy on home loan and prioritize your application.