We all dream of our own address some place that we can call our home, and in order to empower the Indian people to get the dwelling they keep wondering about, Pradhan Mantri Awas Yojana was announced – ‘Housing For All’ in 2015. The country is estimated to have a deficiency of nearly 20 million accomodations for the rural and urban poor. Whereas there is a huge development going on in the real estate sector these seem out of reach for the said masses who need affordable housing at lower price points of Rs. 5 – 15 Lacs. Housing for All by 2022 is a mammoth task and the government has initiated Credit Linked Subsidy Scheme (CLSS) so that people can fulfil their dreams of owning a house. There are 4 broad categories of the CLSS scheme under PMAY. The categories, and the loan eligibility & subsidy across these categories have been explained in the table below. Rest is simple. Whoever is availing the PMAY subsidy under a particular category, gets the subsidy amount directly deducted from the overall loan amount. This reduces the overall EMI burden. The savings in terms of EMI has been highlighted in the table below. Conditions for PMAY: (a) Beneficiary max age 70 years, (b) EWS (Economic Weaker Section) annual income Less than Rupees 3 Lac and LIG (Lower Income Group) Annual Income 3,00,001 to 6,00,000 Lac INR as well as Mid Income group since Feb 2017, and (c) The beneficiary should not have an own dwelling unit on the name of any family member in any part of India. Who will benefit: For those in the lower and mid-income groups, the PMAY reduces the cost of acquiring a home by Rs. 1lakh to Rs. 2.3 lakh. The increase in the loan amount to Rs. 12 lakh and extension of the scheme to mid-income group may make more homes within the reach of the urban poor. Private contributors: IIFL Home Loans have been helping beneficiaries avail Credit linked Subsidy under Pradhan Mantri Awas Yojana across the country. Till 17 August 2017, the company has helped 4187 beneficiaries avail government subsidy ICICI Bank is giving subsidised home loans to the people eligible for this scheme. AU Housing Finance Limited is also doing subsidy based funding under this scheme. After Indira Awas Yojana and Rajiv Awas Yojana this is another big step residential settlement of the mass population, though it may look like humongous task to be undertaken and involves a lot of government funds, planning and efforts from various entreprises to make it a success. Hopefully we can and stand upto the challenge as a nation for its betterment.
