The Indian government has launched a number of housing schemes in recent years to ease up the process of purchasing a home. In case you are planning to buy a new affordable home, you must be interested in the central government schemes. 

While the PMAY scheme happens to be the most popular plan that the central government has come up with, property owners can also opt for other programs launched by the state and regional governments. 

Prioritizing the ambitious ‘Housing for All by 2022’ motto, the administrators have been easing up the property buying process.

In this post, you will get to know about Pradhan Mantri Awas Yojana, the best scheme of the central government for property owners.

Pradhan Mantri Awas Yojana (PMAY)

It was in June 2015, that the Indian government initiated the idea of ‘Housing for All’. The administrators focused on the financial strengths of the buying masses. Given that more than 90% of the property buyers in India belong to the lower middle class, it was obvious that they would need some kind of subsidy to purchase these homes. 

Eventually, the central government announced the Pradhan Mantri Awas Yojana (PMAY) scheme separately for property buyers in rural and urban areas. Besides, people can avail the benefits of this scheme in case they add rooms, kitchen or toilet to their existing homes.

Evidently, the PMAY scheme can be considered as a strategy that the government launched to achieve its mission to offer housing to all families in India by 2022. This scheme involves providing property buyers with a subsidy on the interest when they avail of a home loan. The Economically Weaker Sections (EWS), Lower Income Groups (LIG), and Middle Income Group (MIG) are already benefitting from this scheme. Considering its features, the PMAY is presently one of the most popular central government housing schemes in the country.

Who can avail the benefits of this scheme (urban)?

1. The following groups of homeowners are eligible for the PMAY scheme.
2. People from the EWS (Economically Weaker Sections), whose annual income is up to INR 3 lakhs.
3. Buyers from the LIG (Lower Income Group), with a household income ranging between INR 3 lakhs and INR 6 lakhs.
4. Property owners from the MIG 1 (Middle Income Group 1), with an annual income up to INR 12 lakhs. 
5. Homebuyers from the MIG 2 (Middle Income Group 2), whose annual income is between INR 12 lakhs to INR 18 lakhs.

Under this scheme, the maximum subsidy that a property owner can get is capped at INR 2.67 lakhs.

Percentage of subsidy available for different sections

1. The subsidy for interest on home loans for homeowners from the EWS and LIG is 6.40%.
2. For the MIG homebuyers, the subsidy is 4%.
3. For MIG 2, the subsidy percentage would be 3%.

There are certain criteria that you need to fulfill in order to avail the benefits of PMAY. The families may consist of a husband and wife, and if there are children, they need to be unmarried. Individuals also can apply for the scheme. For all income groups, the maximum tenure for these loans would be 20 years. 

The eligible amount of loan subsidy also varies from one income group to the next. Have a look at the structure of subsidies:

1. The subsidy can be up to INR 6 lakhs for property owners from EWS and LIG
2. The amount for MIG-1 would be INR 9 lakhs
3. For MIG-2, the amount would be INR 12 lakhs

Clauses of the Pradhan Mantri Awas Yojana (Rural)

Under the rural version of PMAY, the Gram Sabha chooses the beneficiaries of the scheme. In this context, the data is collected on the basis of national level caste and socio-economic census. The motto is to make a list of economically and socially backward families in the country and categorize the beneficiary list under the PMAY Rural program. In case the name of the applicant is present in the Gram Sabha list, the person can apply for a home loan under the mentioned scheme.

All the features mentioned in this post make the PMAY one of the best government affordable housing schemes in India. 

Other housing schemes that homeowners can choose from

 Here are some of the state government housing schemes in India, that property owners can choose from.

1. Haryana (HUDA ) Affordable Housing Scheme
2. Kerala Housing Board Housing Scheme
3. Suraksha Housing Scheme
4. The Maharashtra Housing and Area Development Authority Scheme
5. Delhi Development Authority (DDA) Housing Scheme
6. NTR Urban Housing Scheme

With a number of housing schemes in India to choose from, property owners have several options. Particularly, the PMAY scheme provides a lot of relief to the weaker sections of society when they purchase a property. If you are planning to buy a new home, you can apply for a home loan and enjoy a subsidy on the interest.