Food, clothing, and shelter constitute man’s most basic needs. Yet, the rising cost of housing has turned this basic human right to a privilege. To allow more people to own a home, the government has introduced the Pradhan Mantri Awas Yojana (PMAY) scheme that aims at providing 20 million individuals with affordable houses by the year 2020. Besides subsidized housing costs, the government has also reduced the GST rate applicable on housing loans from 12% to 8%. Let’s find out the several benefits of this scheme.
Perhaps one of the biggest benefits of home ownership under the PMAY scheme is the opportunity to avail huge subsidies. The Central Government will provide a subsidy ranging from Rs. 1,00,000 to Rs. 2,30,000 for all those belonging to the EWS (Economically Weaker Section) and LIG (Lower Income Group) segment of the society. The subsidy is, however, available only for purchasing houses that fall under the ambit of the PMAY scheme.
Not only that, if you’re funding your house purchase using a home loan, you can enjoy reduced interest rates. The applicable home loan interest rates under this scheme are as follows –
- Those belonging to EWS or LIG categories can apply for a home loan up to of Rs. 6,00,000 and get an interest rate of 6.5%, lower than the market, for a period of 20 years
- Those falling in the MIG 1 category can apply for a housing loan for a maximum amount of Rs. 9,00,000 and are eligible for a home loan interest rate subsidy of up to 4% for a period of 20 years
- If you belong to the MIG 2 segment, you can enjoy a home loan interest rate subsidized by 3% upto a maximum loan amount of Rs. 12,00,000 for a period of 20 years
Special Consideration for Women and Minority Groups
The PMAY scheme gives female applicants priority over their male counterparts. Such provisions exist not only for salaried women and widows but also for other groups such as minorities, transgender people, senior citizens, and differently abled citizens. For example – If you’re a senior citizen applying for home ownership under this scheme, you will be given accommodation on a ground floor for convenience.
The scheme instructs developers to strictly adhere to eco-friendly construction technology and construction materials. This will not only keep pollution levels under check but will also lower damage caused in and around the site of construction.
Now that you know the benefits the PMAY scheme can bring to you, check out the eligibility criteria to know if you can apply for home ownership under this scheme. And if yes, you can apply for a home loan with Tata Capital, India’s leading housing finance provider. Prapti Home Loan Solutions by Tata Capital allows people with an annual income of Rs. 6,00,000 and below to enjoy a subsidized interest rate of upto 6.5%. Check out the Praptihome loan eligibility criteria to apply for a home loan today!