Pradhan Mantri Awas Yojana: Benefits of PMAY Scheme

ByMohit Bansal

“Pradhan Mantri Awas Yojana is not just about merely building houses. This is a significant step in making the dreams of the poor come true”

– Narendra Modi, Prime Minister

Food, clothing, and home are often cited as the three most important things in life. However, as real estate rates continue to rise, most people find it difficult to buy a third necessity – protection. For this reason, the government led by Narendra Modi launched the Pradhan Mantri Awas Yojana (PMAY) program which offers affordable housing for all groups.

The honorary premiere offers a place to live for everyone, while the country celebrates 75 years of independence in 2022. To achieve this goal, the central government launched the comprehensive Pradhan Mantri Awas Yojana mission of “Housing for All (urban)“. The mission aims to meet the housing needs of the urban poor, including slum dwellers, through the following program areas:

  • On-site reconstruction of the carcass (ISSR)
  • Credit-Related Subsidy System (CLSS)
  • Affordable housing in partnership (AHP)
  • Individual structures/household improvements run by recipients (BLC-N / BLC-E)

Benefits of Pradhan Mantri Awas Yojana:

We all dream of owning a home. Whether it’s a small 1BHK or a bungalow, a home is the best financial security a person can have. It can provide a safe haven for you and your family, take care of your children’s financial future, and security for various types of loans when you need cash most. However, with house prices soaring, there are some segments of society who can’t even dream of owning a house. According to Prime Minister Narendra Modi, “Pradhan Mantri Awas Yojana is an important step towards realizing the dreams of the poor.” Let’s take a look at the benefits of Pradhan Mantri Awas Yojana – Home for All.

It is Aimed at Plum Rehabilitation:

The PMAY program is a well-developed program that will ultimately benefit the country and the economy. The main objective of the program is to eradicate housing in poor neighborhoods and replace them with “puka” or concrete houses, especially from urban cities in India, which significantly increase GDP. With this local slum settlement rehabilitation program, the government aims to encourage slum dwellers to choose formal urban settlements over residential neighborhoods and to use land that is wiped out because of the environment.

Housing For All:

One of the greatest advantages of Pradhan Mantri Awas Yojana is that it aims to provide permanent housing for everyone. As part of this program, the government intends to increase up to 2 kroner at an affordable price of 1 BHK in some of India’s most famous urban areas. Housing construction has started in the states of Maharashtra, Tamil Nadu, West Bengal, and other countries. The Indian government wants to improve the standard of living of the Indian people and eradicate poverty through these houses.

Affordable Housing for Everyone:

The Pradhan Mantri Awas Yojana program aims to provide affordable housing for all levels of society. This benefit applies to homeless applicants belonging to certain income groups and sectors of society. Applicants are divided into different groups eg. B. Weak socioeconomic class (EWS), low-income group (LIG), and middle-income group (MIG). The middle-income group is further divided into MIG 1 and MIG 2 based on income levels. This includes minorities such as members of the planned caste, planned ethnic groups, other underdeveloped classes, as well as female and adult candidates, widows, and members of the transgender community.

Accommodation at Subsidized Interest Rates:

The main advantage of the PMAY system is the credit-related subsidy system. To increase institutional credit inflows, the government has added a credit-related component to the PMAY system. This enables the eligible urban poor (EWS, LIG, MIG 1, and MIG 2 members) to obtain home loans to buy or build at much lower interest rates. Such borrowers can receive a significant reduction in interest payments. For example, if members of the above income group choose a home loan, they will be charged an interest rate of 8.40% per annum. For loans up to 600,000 yen, he receives an interest subsidy depending on his eligibility. Interest subsidies are paid in advance through the credit institution to the recipient’s credit account, resulting in a reduction in effective home loans and a balanced monthly interest rate (PMI). If someone chooses a home loan of 600,000 euros, they will have to pay a regular interest rate of over 600,000,000 euros.

It Secures Women’s Financial Futures:

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Another great benefit of Pradhan Mantri Awas Yojana is encouraging women to apply for loans and become homeowners. According to the system scheme, when a married man applies for a loan, he must register his wife as the applicant for the loan, even though she has no role in financing the purchase of the property. This is done to secure the financial future of women, especially if they are old and widowed.

The Advantage of Environmentally Friendly Living:

Developers and builders who are responsible for building houses under the Pradhan Mantri Awas Yojana program have been instructed to build houses using environmentally friendly building materials and technology. The purpose behind this is to ensure minimal environmental damage at the construction site, including damage from air and noise pollution. The houses are constructed from durable, high-quality materials to avoid remodeling or remodeling as long as possible.