Guide to PMAY scheme: Finance, eligibility, provisions & more:

The PMAY means Pradhan Mantri Awas Yojana is a housing for all scheme launched in 2015 to provide permanent houses for those who do not own any of the property in India. The Government of India aims to provide housing for all schemes by the year 2022. There is a lack of beneficiaries under the scheme who have benefitted from the scheme. A subsidy on home loans is given up to Rs.2.67 lakh for the scheme. The interest subsidy is credited into the flat buyer’s bank account when home loans are opted for purchasing the property. The Government allows availing of home loans from any of the borrowers for obtaining the loans. The banks like SBI, HDFC, ICICI & BANK OF BARODA are amongst the key lenders for the home loans, and thus the higher beneficiaries are from these top lending banks in India. The PMAY scheme has helped lakhs of beneficiaries across India to buy their own houses. The buyers have to submit all the relevant documents to the banks and also fill the subsidy form for home loans. The subsidy needs approval from the Government for clearance, and thus after the clearance, the home loans with the subsidy can be sanctioned subject to approval by the Government.

Also, the Government found out that the ownership of women in the properties is significantly less. Thus, the Government has made a mandated rule that while applying for the home loans, a women applicant should apply for the loans either in joint name or else independent representation. This can increase the ownership of women in properties. The urban region scheme is meant to buy flats, while the rural scheme is intended for the people to construct permanent houses made of concrete for the rural households. The Government of India has planned to provide subsidies to 2 crore beneficiaries to have their own homes. This scheme will also help boost the Real estate sector, which is running very slow and provides a boost to employment as many people are employed in the Real estate sector. The Government also provides a tax benefit to the beneficiaries under the income tax act 80C. The expenditure of the people in real estate also gives a boost to the economy as the amount which is invested in Real estate is very high.

Following are the features of the PMAY scheme:

• Subsidy scheme:

The subsidy scheme helps avail loans to the loan applicants at interest rates of 6.50% per annum. The home loan applicant can avail of the subsidy of Rs.2.67 lakh on the interest repayment to the bank. The eligible people for the scheme are:

• People belonging to economically weaker sections.
• Lower-income groups.
• Middle-income groups.
• Scheduled caste.
• Scheduled tribe.
• Other backward classes.

The people belonging to the lower strata of the society are given a higher preference for the approval of the subsidy scheme. Even the existing borrowers are eligible to avail of the subsidy on the project subject to eligibility.

• Eligibility for availing subsidy:

The home buyers should not own any of the property anywhere in the country in their name. The people belonging to economically weaker sections are given first preference compared to the ones belonging to higher strata of the society. The applicant should provide proper proof regarding the income and type of employment while providing the application. The applicant should also submit all necessary documents required for the home loans to get approval. The flat buyer should avail loans from the bank to avail subsidy. Without availing of the loans, the flat buyer cannot avail of the subsidy on the scheme.

• Benefits to women under PMAY:

Female ownership is mandatory while availing of the subsidy under the PMAY scheme in married applicants. The Government of India has made it compulsory to have female co-ownership in the EWS & LIG category. The Government of India felt a need to increase the ownership of the property of females as the property market in India is male-dominated. Thus, to increase women’s right in the property, the PMAY scheme aims to increase the ownership of women through the scheme.

Benefits through PMAY scheme to the economy:

• Employment opportunities in the real estate sector:

The PMAY scheme has given a significant boost to the real estate sector. Due to the PMAY scheme, 6.07 crore jobs have been created in the real estate sector. And there have been 6 lakh beneficiaries under the scheme till Jan 2020. The scheme aims to make people own their houses and become self-reliant.

• Boost to the home loans finance institutions:

Till now, 6 lakh people have benefitted from the PMAY scheme. In addition, the PMAY scheme has helped boost the home loan finance sector as the disbursement of the loans has increased.

• Overall benefit to the economy:

The overall economy has benefitted a lot as the investment in the Real estate sector is vast and has helped the struggling real estate sector grow and provides business opportunities to construction contractors and construction material suppliers.ETC. Due to the overall increase in the sale of flats in India. The top 500 cities in the municipal jurisdictions are given the highest preference to help avail benefit under the PMAY scheme.

Conclusion:

Thus the PMAY scheme helps avail subsidy for the home buyers against the loan applied if the applicant falls under the economically weaker section or the lower-income group. The flat buyer can save money by applying for the scheme. The PMAY scheme has also helped to increase the ownership of women under the scheme.