Pradhan Mantri Awas Yojana - PMAY Home Loan

Detail about home loan under Pradhan Mantri Awas Yojana

What is The Pradhan Mantri Awas Yojana (PMAY)?

THE Pradhan Mantri Awas Yojana PMAY is an endeavour of the government of India that has the objective of providing affordable houses to the poor or urban areas. The scheme was begun in 2015 and had been continuing after that. The rate of interest for the project stands at 6.05 per cent per year. The loan tenure is of 20 years. The last date for availing of the scheme's benefits has been extended to March 2022. Till now, millions have benefitted from this scheme. It has slowly changed the housing landscape of India. The poor have begun seeing some rays of hope after the scheme's launch. The project is being executed by both the state and the central government. There is a central nodal agency that oversees the affairs of the scheme. It provides some guidelines from time to time. To be eligible for the project, one must fulfil specific criteria and have some documents in one's possession. 

Benefits of Pradhan Mantri Awas Yojana (PMAY) Scheme

The interest rate is 6 per cent per year on housing loans. The tenure is of 20 years for all the people who are beneficiaries. The ground floors will be given to differently-abled and senior citizens. Eco-friendly and sustainable technologies are being used to implement the scheme of constructing houses. The priority is given to 500 Class I cities. The project will be implemented in three phases. 

There is a credit-linked subsidy side of the scheme, and it will be implemented in all the statutory towns. 

Identification and Selection of Beneficiaries under Pradhan Mantri Awas Yojana (PMAY)

This Yojana caters to the requirement of houses by the poor. The scheme also provides homes to the slum dwellers who live in tiny areas with little or no infrastructure. There is poor sanitation and little potable drinking water. 

The beneficiaries have been classified into MIG AND LIG. Apart from that, another section is known as the economically weaker section or EWS. People from the economically weaker section will get complete assistance while MIG AND LIG poor will be given credit-linked subsidy schemes. To be eligible, the applicant has to submit an affidavit showing the income proof from the authority. 

Pradhan Mantri Awas Yojana Gramin was known as Indira Awas Yojana. The name was changed in 2016. The scheme's objective is to provide affordable houses to the beneficiaries who are eligible. The state and central governments bear the burden of implementing the program. 

Pradhan Mantri Awas Yojana Urban is for the urban areas. There are around 4000 towns now under the scanner of the scheme. The scheme is being implemented in phases. In the first phase, about 100 cities are targeted in different states. In phase 2, 200 more cities will be included. Under phase 3, the towns left out will be covered. 

Eligibility:

The family means husband, wife, and unmarried sons and daughters. An adult earning member will be treated as a separate entity. It will be treated as a particular household. For a married couple, either persons or jointly will be treated as an owner. They will be getting a single house depending on the income under the scheme. 

For ews and lig units, criteria are different. In these instances, a female member must be named as the beneficiary. If there is no female member in the family, the house will be called for the male member of the family. Any family member should not own a pucca home in their name. There should not be any assistance from the government before. The loan tenure is for 20 years. 

Features of HFL Home loan: 

An online home loan facility is given. There is the provision of quick sanction of loan. The documentation is simple. The maximum tenure here is 30 years or reaching the age of 60, whichever is earlier. The rate of interest charged will be one of the lowest in the market. There is no pre-payment penalty. One can construct a house or purchase a home from a private developer or a housing board. The loan can be used for repairs and renovation also.