What is PMAY?
Faced with severe economic instability and lockdown in 2020, a huge portion of India's populace came to appreciate the necessity of property ownership. Others saw it as a viable investment due to the stability of real estate prices and competitive borrowing rates. Even so, not everyone can afford to buy a home. As a result, in June 2015, India's government introduced the Pradhan Mantri Awas Yojana, or PMAY, with their well-being in mind. This program aims to meet the housing needs of urban and rural residents who are members of economically disadvantaged communities. The motive behind this scheme is "Housing for all". PMAY list of beneficiaries are classified into four types based on their income they are as follows:
- Economically Weaker Sections (EWS)
- Lower Income Groups (LIG)
- Middle-Income Groups I (MIG I)
- Middle-Income Groups II (MIG II)
PMAY eligibility criteria
To take advantage of the benefits of PMAY, the applicant must be eligible for the program, which is why the Pradhan Mantri Awas Yojana eligibility criteria are listed below:
- Only those who do not possess a pucca house in their name or the name of a family member are eligible for such benefits.
- Individuals who have benefited from any other central government housing program are ineligible for PMAY subsidy
- This scheme is open to any household with an annual income of up to Rs.18 lakh.
- An adult female member of the family must own or co-own the property for EWS and LIG applicants. Only a male member can be the sole owner of PMAY residences if no such member exists.
There are various housing finance companies that provide the facility of PMAY loans. The subsidy that a person gets under PMAY is close to 6.5% per annum. These loans are easy to apply for and get approved in a very short span of time. Therefore, a first-time homebuyer should consider PMAY as a suitable option for fulfilling the dream of getting their first home.
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