Top 3 Benefits of the Pradhan Mantri Awas Yojana for First Time Home Buyers

Having a home falls under the list of basic necessities of human beings, after food and water. Every individual needs a house they can call their own.

But, as the price of India’s land and houses keep on rising, this necessity is becoming an unachievable dream for many.

The PMAY or Pradhan Mantri Awas Yojana is a practical approach to making housing more affordable for different sections of society. People, who wish to buy property in Kolkata or anywhere in the country, can benefit immensely from this government scheme; which enables any individual to become homeowners in a few simple steps.

The government also recently announced that the GST for home loans would be reduced to 8% for buyers who have applied for a loan through the Pradhan Mantri Awas Yojna scheme. It is extremely advantageous for first time urban home investors who are looking to buy flats in Kolkata and other parts of the country.

Benefits of PMAY Scheme

1. Every Citizen is Offered A Large Subsidy

The most significant benefit of purchasing a new property through the PMAY scheme is the government subsidy that is offered with the scheme. A credit-linked sponsorship based on the prospective buyer’s income will be offered by the government, starting from EWS/LIG to MIG 1 and MIG 2.

• People from the EWS/LIG category are eligible for getting a subsidized home loan interest of 6.5% with a tenor of 20 years.
• Citizens enlisted in the Mid-level MIG category can obtain a home loan interest reduced by 4% for a 20 years tenor period. The maximum loan amount in this category is 9 lakh.
• With a tenor of 20 years, the loan interest would be subsidized by 3%, allocating up to 12 lakh loan amount for citizens who come under the MIG 2 category.

It should be noted that the scheme is entirely focused on first-time homeowners. People who already have homes are not eligible for this subsidy.

2. Housing for all Levels of the Society

Property for sale will be more accessible to buyers in Kolkata and other cities. The Government has set in motion a plan to build up to two crore houses in major urban areas. Work has already been initiated in many states, including West Bengal, Maharashtra, Tamil Nadu, etc.

These houses are expected to improve the standard of living of many citizens all over the country.

3. Advantages for Women and minorities

Homeownership of women is a mandatory clause in PMAY. The home needs to be registered in the woman’s name.

This clause is also compulsory in cases where women aren’t buying it on their own. Widows, salaried women, transgender people, minorities, disabled individuals and seniors will also get preference in availing the Pradhan Mantri Awas Yojana.

Senior citizens purchasing homes through PMAY are entitled to get ground floor accommodation, as it is another mandatory clause in the scheme to ensure senior citizens are provided with more comfort.

4. A Scheme Spanning the Entire Country

The PMAY scheme’s offerings are not only limited to urban areas of the country, but it is equally focused on developing low-middle income groups of rural areas.

Along with improving the standard of living of low-income groups, the PMAY schemes are also responsible for developing the rural real estate sector and industries connected to it.