Pradhan Mantri Awas Yojana – Urban may get a Thrust
The Pradhan Mantri Awas Yojana or PMAY is one of government’s most ambitious projects to provide affordable housing to economically backward sections of both rural and urban India. The project has completed four years with over 26 Lakh houses built as a part of of affordable housing. However, it still falls short of the total target of houses constructed by quite a lot. That is why the PMAY scheme was deemed to get a thrust in Budget 2019.
Along with construction of new houses, the scheme also offers PMAY subsidy under which eligible candidates can avail housing loan at a subsidised rate of interest. Thus, with these components, the government aims to provide housing for all by March 2022.
Announcements at 2019 budget for PMAY
In the 2019 budget, PMAY received a boost to ensure that the projects undertaken are completed by 2022. Following are a few announcements made during the presentation of budget-
- In the coming years, there is a target to provide housing for 1.95 Crore individuals. Each house will be equipped with amenities like a toilet, LPG connections and electricity.
- Previously, time taken to construct homes was 314 days, which subsequently reduced to 114 days. That is why more emphasis will be put on increasing the infrastructure.
- There will be reforms to improve rental housing conditions. Since current rental housing laws do not address relationships between the lessor and lessee reasonably, the rental situation in the country needs improvement.
- Individuals can avail a subsidy of up to 6.5% on interest rates under PMAY subsidy scheme.
These are a few highlights from the 2019 budget, which can give the PMAY scheme a thrust.
Who can avail the Pradhan Mantri Awas Yojana 2019 scheme?
Before applying you should know the PMAY eligibility criteria. They are-
- Economically Weaker Section or EWS with an annual household income of less than Rs. 3 Lakh.
- Low Income Group or LIG with a yearly household income of Rs. 3 Lakh to Rs. 6 Lakh
- Mid Income Group I or MIG I with an annual household income of Rs. 6 Lakh to Rs. 12 Lakh.
- MIG II with an annual household income of Rs. 12 Lakh to Rs. 18 Lakh.
Apart from these, they should also comply with the following factors to satisfy the PMAY eligibility criteria-
- Individuals applying for the scheme should not have a brick and mortar house in their name or in the name of their family members anywhere in India.
- Individuals should not have availed the benefits of any other previous government housing schemes.
- Any property you purchase should be co-owned by a female member of the household.
- The property availed under the scheme should belong to any of the statutory towns under 2011 census.
Individuals complying with all the criteria above can avail the benefits of the Pradhan Mantri Awas Yojana loan.
What are the benefits under CLSS that individuals can avail in 2019?
One of the key benefits of the Pradhan Mantri Awas Yojana is the Credit Linked Subsidy Scheme or CLSS. It is a part of PMAY under which individuals can avail a subsidised home loan interest rate from various financial institutions in India. Under CLSS, individuals can avail the following subsidy rates on home loan:
- 6.5% for a loan amount of up to Rs. 6 Lakhs for individuals belonging to EWS and LIG.
- 4% on loan amount of up to Rs. 9 Lakhs for beneficiaries under MIG I.
- 3% on loan amount of up to Rs. 12 Lakhs for individuals belonging to MIG II.
Under PMAY, you can avail above mentioned subsidy from many listed financial institutions like Bajaj Finserv. Additionally, you can also avail pre-approved offers that can make availing loans faster and easier. These offers are available on several financial products, including secured loans like home loans and unsecured loans like personal loans, business loans, etc. You can check your pre-approved offer quickly by providing your name and phone number.
The benefits of PMAY subsidy remain unchanged after budget 2019. The government aims to increase the quantum of beneficiaries availing the subsidy in the upcoming years.