Several people who think of living in their own property may consider buying property or renting it. Nonetheless, the trend is to buy a property and invest in an asset that will eventually grow in value. Additionally, an approach of buyers of new homes is that, instead of renting out a property, they would rather use those funds to pay EMIs on home loans they take to purchase properties.
Owning Property and PMAY
Buying a new home is a top priority for most Indians today. If you have a home, you have an asset that is sure to appreciate with time. If you have more than one home, you can rent out other properties, acting as additional income sources. With the goal of promoting the sales of homes in India, the Pradhan Mantri Awas Yojana was established in 2015.
This is a government scheme that plans to provide housing for all needy Indians by 2022. Under this scheme, loans are provided at subsidized rates of interest, primarily to homeless individuals. This, the government believes, should prompt higher home sales for economically weaker sections and lower-income groups of society. To avail of this scheme, applicants must meet certain eligibility criteria, but first, it’s important to know its features and benefits.
Features and Benefits of PMAY
In order to avail the PMAY scheme, you should know its features and benefits:
- Applicants can avail this scheme if they want to buy/construct a property in a rural or urban area.
- Applicants should be from lower-income groups, middle-income groups or economically weaker segments of society.
- Incremental loans are provided in order to construct extensions to an existing accommodation too.
- Applicants can avail of the Pradhan Mantri Awas Yojana Scheme through leading banks like Axis Bank and HDFC Bank, or NBFCs like Bajaj Finserv.
- Under the scheme, there are two categories, the PMAY-G (for rural housing) and the PMAY-U (for urban housing).
Eligibility Criteria for PMAY
After you are aware of the benefits of the PMAY scheme, you should know whether you are eligible to apply for the same. The eligibility criteria for PMAY are as follows:
- Applicants should be between 23 to 62 years of age.
- The family who applies for loans under this scheme should not be owners of a pucca house.
- Either of the spouses in a family can avail this scheme, but one female member per family should be the sole owner or joint owner of the new property.
- A family who has previously applied for a government housing scheme is not eligible to apply for loans under the Pradhan Mantri Awas Yojana eligibility
Within different categories of loan applicants, there is income criteria that has to be met in order to avail loans in different categories under this scheme. With an easy application process, several urban and rural residents have benefitted from PMAY. Recently, in an extension of PMAY-U, the sanctioning committee in Tamil Nadu gave approval for five more housing projects.
When All is Said and Done…
The PMAY scheme is a ray of light for people who have only dreamt of owning a home. As the majority of India’s population comes from lower-income and economically weaker sections of society, PMAY is a way for families to become self-reliant and have a much-needed roof over their heads.