The Pradhan Mantri Awas Yojana (PMAY) is an initiative that was launched in the year 2015 by the Government of India. The main objective of the PMAY scheme is to achieve “Housing for All” by the year 2022. At the forefront of the scheme is the rising population of the urban dwellers in the country that is bereft of suitable living conditions.
The Pradhan Mantri Awas Yojana eligibility is extended to the economically weaker sections of the society such as minorities, disabled citizens, women, etc. The PMAY Yojana’s various benefits are available to people belonging to these categories.
Here is a list of key benefits that can be availed under the Pradhan Mantri Awas Yojana.
1. Credit linked subsidy
Households with a total annual income between Rs. 6 lakhs and Rs. 18 lakhs can apply for a housing loan under the PMAY scheme. Eligible borrowers of economically weaker sections (EWS), LIG, and MIG income groups can avail the credit-linked Pradhan Mantri Awas Yojana subsidy on housing loans. All beneficiaries receive a 6.50% subsidised interest rate annually for home loans with a term of 20 years.
2. Provisions for women applicants
Women applicants, especially widows, from the EWS and LIG income groups are also eligible to apply for PMAY Yojana. Under this initiative, female candidates will be given preference for the allotment of houses. However, the women candidates must own the property to avail these benefits and there must not be another applicant from the same household.
3. Tax benefits
Homebuyers with loans sanctioned before the 31st March 2020 fall under Pradhan Mantri Awas Yojana eligibility for certain tax benefits on interest repayments. Under the section 80EEA of the IT Act, an additional income tax deduction of Rs. 1.5 lakhs can be availed under the scheme.
This benefit is given above a tax deduction of Rs. 2 lakhs on interest payments under section 24B. Under section 80C, first-time homebuyers with a property price less than Rs. 45 lakhs on stamp duty will receive a deduction of Rs. 1.5 lakhs on principal payment.
Additional Read:- How to Complete your Dream of Owning a House Using PMAY
4. Inclusive of all stratum
The benefits of PMAY schemes extend to a large demographic – transgender, SCs, STs, and other minorities all enjoy PMAY eligibility and can become homeowners. Special ground-floor accommodations are also to be provided to senior citizens and disabled people.
5. For home improvement
A home loan can be taken under the PMAY Yojana for the construction of a new property or a home renovation, provided the applicant is from a lower income group. Beneficiaries will also be able to get Pradhan Mantri Awas Yojana subsidy and tax benefits on their loan amount. This will assist them in enhancing their homes to an improved standard of living.
The PMAY Yojana has been benefitting citizens from several economically and socially challenged sections of society. Many have been able to afford a roof above their heads by using the various subsidies that are being offered under this initiative.
Additional Read:- How is PMAY Beneficial for You?
Are you also eligible for a Pradhan Mantri Awas Yojana subsidy? Get in touch with Tata Capital to avail a PMAY loan today.