Key Benefits of Home Loan under the PM Awas Yojana

PMAY

The Pradhan Mantri Awas Yojana, in its mission to provide affordable housing to all in India by 2022, has not only reduced the cost of buying a home, but has also encouraged construction in India. Here’s an in-depth look at all the benefits it brings to homeowners in India.

You Get Credit to Buy a Home at a Subsidised Rate of Interest

One of the important highlights of the PMAY scheme is its mission to provide affordable housing loans through a credit linked interest subsidy. This reduces your overall repayment burden through reduced EMIs. This proves to be advantageous for those in the economic weaker section (EWS), low income group (LIG), and middle income group (MIG). This subsidized funding goes a long way in taking a home loan to build or buy a house. The total amount of savings vary between Rs.2.67 lakh and Rs.2.30 lakh.

You can do Much More than Build a New Home

The PMAY-linked home loans can be taken not only to build new homes but also to renovate your existing property. Those from the LIG or EWS categories as per PMAY eligibility can avail of a home loan for constructing additional rooms like a kitchen or a toilet in your existing home. If you want to add further extensions, the floor area is limited to 30 square metres for EWS category and 60 square metres for the LIG category.

Your Female Family Members get Preference to Become Homeowners

The PMAY scheme provides women a number of incentives when availing of home loans. Women are given priority as part of this scheme on the same lines as SC/ST groups and differently abled persons. For instance, if you want to avail of the benefits of the scheme by going for a home loan, it is mandatory that ownership of the house be registered in the name of a female family member under the LIG category. In addition to this, several state governments have offered to waive any additional stamp duty if the house is registered in a woman’s name, regardless of income. There are also a number of banks and lending institutions that offer discounted rates of interest to enable women become homeowners.

Slums are being Developed and Eco-friendly Construction is being Fostered

PMAY’s mission is not only to enable the weaker sections of society to live in affordable houses, but in also taking care of the environment surrounding these dwellings. The scheme has set specific instructions to develop all housing colonies with the latest environment-friendly construction technology. The scheme aims to pursue its objective of onsite redevelopment of slums by engaging both public sector and corporate partnership.

Find out more about the eligibility criteria and interest subsidy of PMAY, and get started on your journey to become a homeowner.

Richa Sharma is a freelance author and writes for a variety of online publications. She actively writes blogs and articles and very fond of writing content on different trendy topicss related to Education, training,resources,health and technology.