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Fri, 06 Dec 2019

Northeast Today

More than 80 Lakh Houses Sanctioned under PMAY Scheme in Urban Area

More than 80 Lakh Houses Sanctioned under PMAY Scheme in Urban Area
August 01
13:59 2019

NET Bureau

The real estate market in India is one of the fastest-growing and most diverse parts of the country’s economy. It is predicted to reach almost Rs. 70,000 Crore by the end of FY 2035, fuelled by a rapid change in the average income of the society and swift urbanisation. An increasing number of India’s younger population, as well as individuals from lower and middle-income groups,  are moving towards urban areas of the country to live near their workplace.

However, this rapid shift in localisation has put a severe strain on both the infrastructure of urban areas, as well as the financial conditions of the migrants. Most metropolitan areas of India already face severe housing crisis and price mark-ups, making it difficult for outstation individuals to find affordable yet quality living quarters.

To battle this unwanted situation, the Government of India initiated Pradhan Mantri Awas Yojana,a credit-linked subsidy scheme on home loans for the economically weaker, lower, and middle-income groups of the society. Initiated in June 2015, PMAY aims to provide affordable housing for the urban poor by the end of March 2022.

Progression of PMAY scheme

The Housing for All scheme has produced more than 47 Lakh new houses within the last four years, of which more than 24 Lakh units have been delivered to the beneficiaries. The Government of India has sanctioned more than 80 Lakh residential units for urban areas under this scheme, increasing the total to 4.82 Lakh Crore units till date. The administration aims to deliver approximately 1.95 Crore houses to eligible applicants in ready condition between FY 2020 and 2022.

Pradhan Mantri Awas Yojana loan beneficiaries will enjoy an interest subsidy of 6.5% for a period of 20 years, allowing them to avail a residential property without burdening them financially. The PMAY scheme has enlisted some of the leading financial institutions, including NBFCs, across the nation to provide home loans at a subsidized rate to eligible applicants. Such key benefits of the Pradhan Mantri Awas Yojana (PMAY) have boosted its popularity among its potential and current applicants.

Eligibility criteria for PMAY beneficiaries

Borrowers looking to avail a housing loan under PMAY scheme has to fulfill certain eligibility criteria to be considered for the credit-linked subsidy. These requirements are broadly based according to an applicant’s income and financial standing. Let’s take a look at the PMAY eligibility criteria here –

Eligibility requirement

The minimum requirement for PMAY beneficiaries somewhat differs from standard home loan eligibility criteria. Applicants are primarily categorised according to their household income. These categories include Economically Weaker Section (EWS), Lower Income Group (LIG), Middle Income Group 1 (MIG 1), and Middle Income Group 2 (MIG 2).

Applicants with an annual household income of less than Rs. 3 Lakh falls under the EWS category, whereas an annual household income of Rs. 3 Lakh to Rs. 6 Lakh will be categorised as LIG. Both categories will have to submit necessary income proof while applying to ascertain their claims.

Families with an annual household income below Rs. 12 Lakh will be considered under MIG 1 group. They will be eligible for loans up to Rs. 9 Lakh for residence. MIG 2 identifies applicants whose household income is between Rs. 12 to Rs. 18 Lakh per annum. They can avail home loans of up to Rs. 12 Lakh.

These credits will be available from enlisted financial institutions, including companies like Bajaj Finserv, who offer attractive home loan interest rate to eligible applicants. An online application process and instant loan disbursal make this financial product extremely convenient amongst prospective home buyers.

 

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They also provide pre-approved offers that make availing such credits hassle-free and time-saving. Pre-approved offers are available on several financial products, including secured credits like home loans and unsecured advances like personal loans. You can check your pre-approved offer by sharing your name and contact details online.

Also, an applicant or his or her family must not own any residential property in any part of the country, and should not have benefitted from any housing-related scheme offered by the Government of India.

Pradhan Mantri Awas Yojana is an ambitious project, aimed to tackle rapid urbanisation and provide affordable, high-quality accommodation to the urban poor of the nation. With nearly 50% of the project’s completion in the last four years, the scheme is likely to quench the increasing demand for housing across India’s urban and metropolitan areas.

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