Own a Home with Pradhan Mantri Awas Yojana

The country’s 40 per cent population lives in cities and it is the responsibility of the government to uplift their standards of living. The country is estimated to have a shortage of nearly 20 million housing units needed by the rural and urban poor, at far lower price points of ₹5-15 lakh. Government of India is continuously working to ensure this dream come true for all home seekers in the country. To embark on their vision of Housing for All by 2022, Honourable Prime Minister Mr. Narendra Modi launched Pradhan Mantri Awas Yojana.

Pradhan Mantri Awas Yojna Scheme

This scheme comes with ‘credit linked subsidy scheme’(CLSS) which allows every house constructed, improved, build, purchased or even expanded under this scheme will be given an interest subsidy. With the increase in subsidised loan amount to ₹12 lakh, the scheme is expected to cover a higher proportion of the urban poor.

Under this scheme, the government will be financially assisting the Economically Weaker Section (EWS), Low Income Group (LIG) and Middle Income Group (MIG) in order to achieve its primary aim at providing home for all.

How CLSS works?

CLSS means that the government will happily cover the interest cost up to Rs. 2.67 Lac for an eligible candidate. There is no upper cap on the value of property Home Loan is taken on.

If one takes a Home Loan of Rs. 10 Lac and is supposedly eligible for a subsidy of Rs. 2.67 Lac, the subsidy amount (Rs. 2.67 Lac) would be reduced upfront from the Home Loan (i.e. the Loan amount would reduce to Rs. 7.33 Lac). The customer will have to pay EMIs on the reduced Home Loan amount of Rs. 7.33 Lac only.

Who is eligible for CLSS Scheme?

The family net income should be between 6 to 18 lakhs per year. This includes the combined income of husband and wife.

Every family buying their own home will receive a subsidy on the basis of their income.

Person having a household income of from 6 lakhs to 12 lakhs will get subsidy of 4% and a person having a household income from 6 lakhs to 18 lakhs will get a subsidy of 3%.

Features of PMAY

Since this housing scheme is aimed towards the needy, the following features will be implemented:

While allotting the houses on the ground floors, the differently abled and the senior citizens will be given a higher priority

All the applicants of this scheme must include the name of their mother and/or wife during the time of registration. This is done because the newly allotted house could be either allotted in the name of the matriarch of the family or in the name of jointly the male and female head of the family.

During the construction procedure, eco friendly and environmentally methods will be used to build the houses. This will be a bold step towards creating an environmentally safe household for the individuals.

The beneficiaries will be provided a 6.5% interest subsidy on the housing loans, for 15 years.

The subsidy ensures that the amount that a home owner would have to pay for his overall loan would be reduced significantly. Currently the loan amount on housing is at 9%. However, the government would grant a 6.5% interest on these loan amounts and therefore they would be reduced by at least 3%. This is a great relief a person would be able to save greatly at his loan interest repayment.

With PMAY scheme , homebuyers will now have a wider choice in developers' projects.

Must Read : Pradhan Mantri Awas Yojana - Credit Linked Subsidy Scheme