Everyone dreams of owning a house of their own but fulfilling it is a financially tough decision. This is truer for a country like India where a large chunk of the population is still not able to afford basic amenities, let alone a roof over their head. This was one of the major reasons that prompted the Government of India to launch the Pradhan Mantri Awas Yojana housing initiative in 2015.

What is PMAY?

The Government of India introduced the Pradhan Mantri Awas Yojana (PMAY) initiative to provide affordable housing for all by 31 March 2022.This initiative has two parts – Pradhan Mantri Awas Yojana (PMAY-U) for urban areas and Pradhan Mantri Awaas Yojana (Gramin) (PMAY-G) for rural areas.

A housing scheme that serves the population comprising of different social-economic sections is not an easy feat. The scheme targets three major groups –

  • Economically Weaker Sections (EWS)
  • Lower Income Groups (LIG)
  • Middle Income Groups (MIG)

The four primary components of this initiative are –  

  • In-situ Slum Rehabilitation
  • Beneficiary Led Construction
  • Affordable Housing in Partnership
  • Credit Linked Subsidy Scheme (CLSS)

PMAY’s Effect On the Housing Sector

PMAY has been in existence for some time now, and has benefited a large number of citizens. Even though the initial plan to provide housing for all sections hasn’t been achieved yet, the initiative has certainly taken the right course of action. The government ensures that the homes designed under the scheme are not only well constructed but also have provisions such as a working toilet, LPG gas connection, electricity connection, access to fresh drinking water, etc. To ensure transparency, the government also has set up an online platform where you can see the construction of the homes with complete details of beneficiaries and the payments.

The four components of the PMAY take into consideration different areas and needs. The Credit Linked Subsidy Scheme offers subsidies on home loan interest rates to all three groups. Under CLSS, home loans have a maximum tenure of 20 years.

Under this scheme, EWS, LIG, and MIG sections can opt for home loans for either the construction of a new house or the enhancement of an already existing property. In the EWS category, preference is given to manual scavengers, women (especially widows), individuals belonging to scheduled castes or scheduled tribes or other backward classes, minorities, individuals with disabilities and transgenders.

Affordable Housing Loans at Tata Capital

At Tata Capital, we believe in this vision of the government that every individual in the country, irrespective of their financial background, deserves to turn their dream of owning their own house into reality. To make owning a home easy, we offer affordable housing loans at attractive home loan interest rates. Those with an annual income of up to Rs. 6 lakhs can avail a subsidy of up to 6.5% on home loans. With the help of our home loan EMI calculator, you can calculate your future payments and plan your finances better. Our EMI calculator for home loan also allows you to check your home loan eligibility. We are here to help you provide low-cost housing options with our home loans under the PMAY scheme. Visit us today for easy housing finance and check your eligibility with our home loan calculator.

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