Housing for All | “Sabke liye Ghar”

In the year 2017 for better regulation in the real estate industry, a series of reforms were made like for ensuring transparency in real estate sector RERA was introduced which made the developers to disclose their timelines for their building process. The other massive change was introducing the GST bill in the real estate sector which aimed to reform the tax structure by making it more uniform. But none of them were as impactful as Government’s Housing for All scheme. This will make it easier for the weaker section of the societies to acquire safe loans and invest in making their homes.

Pradhan Mantri Awas Yojana (PMAY) is an initiative by the government under the Prime Minister Narendra Modi under which housing will be provided to urban poor with a target of building 20 million houses by 31st March 2022. Under PMAY, it is planned to build 2 crore houses for urban poor including Economically Weaker Sections (EWS) and Low Income Groups (LIG) in urban areas by the year 2022 through a financial assistance of ₹2 trillion (US$30 billion) from central government.

It has two components:

  1. Pradhan Mantri Awas Yojana (Urban) (PMAY-U) which will target the urban poor.
  2. Pradhan Mantri Awas Yojana (Gramin) (PMAY-G) which will target the rural poor.

 

The feature of Pradhan Mantri Awas Yojana is that the government will provide an interest subsidy of 6.5% on housing loans availed by the beneficiaries for a period of 20 years under credit link subsidy scheme(CLSS) from the start of a loan. This scheme will comprise of other schemes that ensure that every house will have a toilet, electricity connection, LPG gas connection, drinking water accessibility, and many more. The houses under PMAY would be constructed through a technology that is eco-friendly and preference will be given to an older person and differently abled person for the allotment of the ground floor.

 

This scheme is comprised of three phases:

Phase 1 – (April 2015 to March 2017) to cover 100 cities.

Phase 2 – (April 2017 to March 2019) to cover additional 200 cities.

Phase 3 – (April 2019 to March 2022) to cover remaining cities.

 

Private contributors such IIFL home loans have been helping the beneficiaries to avail government subsidies. ICICI bank also giving subsidies to the eligible people for the scheme. AU Housing Finance Limited has also been giving subsidies under the scheme.

 

Conditions for PMAY:

  1. Maximum age limit is 70 years.
  2. Economically Weaker Sections (EWS) annual income should be less than 3 lakh
    Low Income Groups (LIG) annual income between 3 lakh – 6 lakh.
  3. The beneficiary should not have any dwelling unit on the name of any family members in any part of India.

Under this scheme, the houses will be owned by females or jointly by the males. This will help to increase the women empowerment in India.

Paarth Infrabuild, Real Estate Developers, Lucknow, Uttar Pradesh, India

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