All You Wanted To Know About Pradhan Mantri Awas Yojana (PMAY)

What is PMAY?

The Pradhan Mantri Awas Yojana (PMAY) was launched in June 2015 with an aim to provide affordable housing with facilities of water, sanitation and electricity at all times.

Originally, the PMAY scheme was meant to provide housing help to only the Economically Weaker Section (EWS – with an annual income up to Rs 3 lakh) and the Low Income Group (LIG – with an annual income up to Rs 6 lakh).However, Budget 2017 revised the scheme by bringing in Middle Income Group (MIG – with an annual income up to Rs 12 lakh) under its cover as well.

The PMAY comprises four major aspects:

1. Collaborating with private real estate developers to transform slum areas by building homes for slum dwellers.
2. Providing credit-linked subsidy to weaker, low and mid income groups on home loans.
3. Government provided financial assistance for affordable housing projects created in partnership with the State/Union Territories for the EWS.
4. Offering direct financial assistance of Rs 1.5 lakh to the EWS.

Why is it important?

Indian real estate has often catered to the needs of affluent home buyers in big cities. There is an estimated need of 20 million housing units for the urban and rural poor within a budget of Rs 5 lakh to Rs 15 lakh. However, several unsold residences in metropolitan cities range from Rs 50 lakh onwards. The PMAY is addressing this gap between the need of low-income home buyers and the millions of unsold housing units.

Eligibility

1. A person applying under this scheme must not have a pucca house in any part of India under his/her name or under the name of a family member.
2. A person applying under this scheme must belong to the EWS, LIG or MIG groups.

Subsidised Interest

If you fall in the EWS and LIG category, you can avail a loan up to Rs 6 lakh with an interest subsidy of 6.5 per cent. For loans between Rs 6 lakh to Rs 12 lakh, MIGs will get an interest subsidy of 3 per cent to 6 per cent.

All loan tenures for all income slabs have been raised to 20 years as opposed to the earlier 15 years.

Signature Global is a reputed name in the real estate sector in India. Its recent projects on affordable housing in Gurugram are Roselia (Sector 95A) and Serenas (Sector 36). 

Apply online on:-  www.signatureglobal.in  with PMAY.