The number of people who own homes in India has soared considerably in the past few decades. But there is still a long way to go. In fact, just 32% of Indians live in self-owned houses, while 38% live in a house with their parents, according to a survey by India Mortgage Guarantee Corporation (IMGC), in association with Kantar IMRB.
With the aim of driving home ownership rates in India, the Pradhan Mantri Awas Yojana (PMAY) scheme was launched by the central government. The scheme has been created with the aim of helping the Economical Weaker Section (EWS), Lower Income Group (LIG) and Middle Income Group (MIG) to purchase property, as well as for construction and extension.
How Women Benefit from PMAY
The scheme also aims at empowering women. For this, there are certain advantages it offers specifically for women.
Preferential Allotment
Under the Pradhan Mantri Awas Yojana, only a limited number of applications are approved by the government each year. Women have a better chance of getting their application approved. This is because women come under the preferred class, when it comes to allotment.
Lower Interest Rates
Under this scheme, women are also eligible for interest rate concession on home loans taken under this scheme. This interest subsidy scheme is also called Credit Linked Subsidy Scheme or CLSS. Under this scheme, there are 4 sections: Economically Weaker Section (EWS), Low Income Group (LIG), Middle Income Group – 1 (MIG-I) and MIG-II.
Women who come under the LIG and EWS sections can get an interest subsidy of 6.5% on home loans of up to ₹6 lakhs. Normal interest rates would apply above this amount. For women who come under the MIG-I category, an interest subsidy of 4% can be availed for loans up to ₹9 lakhs. Those availing the scheme for MIG- II properties can get a subsidy of 3% on loans of up to ₹12 lakhs.
Necessary Registration
Under the Pradhan Mantri Awas Yojana, the government has also made it mandatory for every family to have at least one woman registered as the homeowner. This helps in increasing the home ownership among women.
Eligibility for PMAY
The following conditions must be satisfied for availing the benefits of this scheme:
- The family of the beneficiary should not be owning a pakka house in their name or in the name of any of the family members in any part of India.
- For married couples, either one of them or both as a couple would be eligible for only a single subsidy.
- The family of the beneficiary should not have taken assistance from a housing scheme of the government of India.
How to Apply for PMAY?
Any household with an annual income of up to ₹18 lakhs can avail this scheme. All you need to do is visit the PMAY website and log in. You then need to click on the “Citizen Assessment” option and choose “Benefit under the other 3 components.” Then, on the second page, you would have to fill your details and submit the application form.
Before you apply for PMAY, be sure to properly read all the terms and conditions on the official website.
