Pradhan Mantri Awas Yojana – The Things You Need to Know

Owning a home is a matter of great pride in India. However, many people with low income can never get to experience this pride due to the high eligibility criteria of lenders. Even the few that do match the eligibility criteria have to pay all of their life savings for this.

To avoid this, the Government of India has launched a scheme known as Pradhan Mantri Awas Yojana.

This is a credit-linked subsidy scheme. What this means is that once you get a loan for buying or constructing a house on a piece of property, you get a subsidy on the interest. What this essentially does is lower the interest rate on your loan. The idea behind the scheme is to provide affordable housing for all the people in India.

The Pradhan Mantri Awas Yojana offers the lowest home loan interest rates which purchase a property accessible to more people.

The scheme is broken down into two categories depending on the location of the property. The two categories are PMAY-U or PMAY-G. The U and G stand from Urban and Gramin respectively. The rules and benefits of both differ from each other.

Let’s have a look at the eligibility criteria of the scheme for a low interest rate.

1. The first criteria are that none of the family members who apply should own a pucca house in any part of India. This criterion is there to ensure that the scheme benefits only first-time house buyers.
2. People who have a household income of up to 18 Lakh per year can apply for a home loan under the scheme.
3. No one can apply for this loan to purchase an already built home. The scheme is only for constructing a home on a piece of property.
4. People who have already received any type of help from the Indian Government for building a house cannot apply for this scheme.

The benefits of the PMAY scheme are as follows:

1. If the home loan is up to 20 years, the rate of interest is fixed at 6.50% per annum. This is the lowest interest rate when it comes to home loans.
2. A 3-4% subsidy is provided on interest to people belonging to middle-income groups for the construction of a house.
3. A priority for ground floor homes is given to Senior Citizens and People with disabilities.
4. The construction of the houses is done using sustainable and eco-friendly materials.

Who are the people who have benefited from this scheme?

1. People who have an annual income of less than 3 Lakh per Annum (EWS).
2. People who have an annual income of 3-6 Lakh per Annum (LIG)
3. People who have an annual income of less than 12 Lakh Per Annum (MIG 1)
4. People who have an annual income of less than 18 Lakh Per Annum (MIG 2)
5. People who belong to a minority status according to the last consensus data.
6. Women who come under EWS and LIG.

PNB Housing is the leading low-interest-rate lender for home loans. You can apply to PNB for fast approval today.