Features of PMAY in 2021

With an aim to achieve ‘Housing for All’ by the year 2022, the Pradhan Mantri Awas Yojana (PMAY) scheme works towards promoting affordable housing. It especially targets beneficiaries belonging to the metropolitan and rural parts of the country. The eligible individuals enjoy a subsidy on the home advance loan costs, thereby making the home purchase experience relatively affordable.

Flagged off on June 1, 2015, there have been several introductions made to the scheme each year. Read on to know more about the features of PMAY in 2021.

Features of PMAY in 2021

The PMAY scheme is extended to eligible persons belonging to the Middle-Income Group. The interest subsidy is offered on housing loans for the acquisition or construction of a home. Under the PMAY scheme, the interest subsidy is applied to the home loan principal amount. The interest subsidy is offered based on the income criteria and the category that a beneficiary falls under. 

Beneficiaries – Who can Avail the PMAY Scheme in 2021?

The PMAY scheme can be availed by the following beneficiaries of a given household:

• A husband, wife, unmarried son and/or unmarried daughter
• An adult earning member of the family – is treated as a separate household. The individual may be married or unmarried

PMAY – Urban and Gramin 2021

PMAY-Urban (PMAY-U) has about 4,331 towns and cities covered under the scheme. Until 2019, the scheme progressed through phase-1 and phase-2. The last phase, phase-3, is slated to be completed by the year 2022. As per a Ministry of Housing and Urban Affairs meeting held on January 20, 2021, 1.68 lakh houses have already been approved by the Central government under PMAY-U.

PMAY-Gramin (PMAY-G) targets the promotion of affordable housing among the people of rural India. It provides financial assistance and aids beneficiaries in constructing ‘pucca’ homes. Individuals who live in the plains can avail themselves a loan of up to Rs1.2 lakh in assistance. Similarly, beneficiaries belonging to hilly areas, Integrated Action Plans, and difficult areas can avail a loan of up to Rs1.3 lakh. As of 2021, a total of 1,03,01,107 houses have been already sanctioned in all states and union territories.

Cost-Sharing Between Central and State Government 

The costs involved in housing development through PMAY are shared between the central and state government. The costs are shared in the following ratio:

Low Awareness Among Home Buyers

Despite being such a lucrative government-offered scheme, a large section of homebuyers continue to be unaware of the PMAY scheme. Home loan awareness surveys point towards the inability of homebuyers in understanding the subsidy limit and loan tenure that can be availed. This awareness gap has to be addressed as the accurate understanding of the PMAY scheme will solve the woes of a large number of homebuyers.

PMAY is a notable scheme and new features are constantly added to it. From extensions on deadlines to additional benefits, visit Finserv MARKETS to stay updated on all news related to the PMAY scheme.