In June 2015 the PM of India launched a scheme to make 'housing for all' a reality. This is known as the Pradhan Mantri Awas Yojana or the PMAY.
As per this scheme people, who belong to the dealer section of the society and do not own a house will be able to build a new pucca house including electricity and sanitation as well as water supply facility.
In order to know the detailed advantages of this scheme let's talk about the necessary aspects of this scheme.
  • This PMAY scheme aims to change the slum area into a developed one.
  • This scheme will work with private developers.
  • Banks and NBFCs will be able to provide home loan to the weaker section or the middle-income group to build their house as per the CLSS or credit linked subsidy.
  • The interest of the subsidy will be between 3 to 6.5 percent of the home loan interest. The loan amount will range from 6 lakhs to 12 lakhs.
  • Economically weaker section, lower income group and the middle-income group are only eligible for this CLSS. Make sure you learn about the Pradhan Mantri Awas Yojana eligibility criteria before applying.
  • This scheme is applicable to both rural and urban areas.
  • One must always check all the factors that have to be met as per the Pradhan Mantri Awas Yojana eligibility criteria. Depending upon this, you can apply for a particular amount of loan.
  • Financial support will be also provided for the economically weaker section whose housing projects are affordable and are being constructed with State and Union Territory partnership.
To know more, talk to your home loan provider.