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Reading Outcome: At the end of this article, you will be able to clearly understand the the PMAY scheme is and how you can benefit if you act now

Buying a home? Have you claimed your PMAY cheque from the Government? If not, then its time for you to know the golden benefits of this scheme in fulfilling your home buying needs

What is the PMAY Scheme?
Commonly, known as the Pradhan Mantri Awas Yojana it is a unified scheme intended to make housing dreams come true for all. It is also a one of a kind financial aid system, which provides housing loan to economically disadvantaged people with reduced complication and hassle

How is the scheme beneficial?
For a lot of us, owning a property or a house of our dreams always remains a challenge. Needless to say, fluctuating economic trends, ever-rising commodity pricing and alarming construction charges make it even more challenging to achieve it! But, with PMAY scheme, addressing the above issues is simple and easy. Not alone that, the scheme also plays a key role in addressing issues like,
• Demand-supply in equilibrium.
• Slum rehabilitation and urban development.
• Affordable housing options for people belonging to lower income groups in a precise and comprehensive manner.

What are the salient features?
Unlike the other Government schemes, PMAY scheme has an integral approach it works through the following approach:

1. Categorization: Keeping in view of the housing needs of common people and to empower the nation in its overall economic development, the scheme as such lays out certain guidelines for an enhanced outcome.
A. Economically Weaker Section: Economically weaker section refers to the segment of people who receive an annual income of INR 3 Lakhs to INR 6 Lakhs as his or her overall income.
Conditions to apply under the Economically Weaker Section:
Any applicant applying under this segment must qualify the following conditions so as to become eligible for the subsidy:
•Applicant or any beneficiary should not own any pucca house while applying for the subsidiary.
•The maximum subsidy one can receive is 2.67 lakhs for an enhanced purchasing powerThe interest subsidy is fixed at 6.5%* for a tenure of 20 years or tenure of the loan or whichever is lower.
Besides that, the applicant is also required to co- own the house with one female member of the family at the time of nomination.
Table 1
Important Terms for Economic Weaker Sections
Serial No Element Condition
1 Female Ownership Though a mandate requirement, female property ownership is not required in cases of home renovation or any other up gradation activities
2 Family The term family refers to husband, wife, unmarried sons and/or unmarried daughters.
3 Carpet Area The carpet area of the house under these Schemes should up to 30 sq. mts. for EWS beneficiaries
4 Availability and Usage This scheme is valid for acquisition/construction of house and repair/extension of Kucha/Semi Pucca house.

B. Middle Income Group-1: Under the PMAY Middle Income Group are referred to the second segment of people who receive an annual income of INR 6 Lakhs to 12 Lakhs as their annual income.
Conditions to apply under the Middle Income Group:
• Applicant or beneficiary should not a pucca house either in his/her name or in the name of any member of his/her family in any part of India at the time of self-nomination.
• The property chosen should fall under all statutory towns as per 2011 census and or adjacent planning area (updated by government time to time).
• The credit linked subsidy @ 4% will be available for loan amount up to Rs.9 lakhs in case of MIG-I. However, the Banks can sanction Home Loans more than Rs.9 lakhs but the subsidy will be restricted to Rs. 9 lakhs only.
• Though the Loan tenure is 20 years, banks can sanction loans for a maximum tenor of 30 years but the loan has to be repaid before the borrower attains the age of 70 years.

Table -2
Important Terms for Middle Income Group- 1
Serial No Element Condition
1 Female Ownership Though female ownership is desirable, case of married couple, either of the spouses or both together in joint ownership will be eligible for a single house subject to income eligibility of the household under the scheme
2 Family Family refers to husband, wife, unmarried sons and/or unmarried daughters.
3 Carpet Area The carpet area of house under this Scheme should be up to 120 sq. mts. (1292 sq ft) for MIG-I beneficiaries.
4 Availability and Usage This scheme is valid for Repair and Renovation

C. Middle Income Group -2: Though the scheme was initially targeted towards the economically disadvantaged people, in recent times PMAY scheme has been extended to the third income group earning 12 lakhs per annum on the following grounds
• The applicant and his/her associated beneficiary should not be an owner of pucca house or any other home at the time of applying the subsidy.
• The applicant should not have availed any central/state assistance under any housing scheme from Government of India ever.
• The credit linked subsidy @3% for Rs 12 lacs in case of MIG-II. However, the Banks can sanction Home Loans more than Rs.12 lakhs but the subsidy will be restricted to Rs.12 lakhs only.
• Loan tenure is 20 years. However, Banks can sanction loans for a maximum tenor of 30 years but the loan has to be repaid before the borrower attains the age of 70 years.
Table-3
Important Terms for Middle Income Group- 2
Serial No Element Condition
1 Female Ownership Adult female membership ownership in property is desirable. An adult earning member (irrespective of marital status) can be treated as a separate household and can avail subsidy independently. In case of a married couple, either of the spouses or both together in joint ownership will be eligible for a single house subject to income eligibility of the household under the scheme.
2 Family Family means husband, wife, unmarried sons and/or unmarried daughters.
3 Carpet Area The carpet area of house under this Scheme up to 150 sq. mts. (1614 sq ft) for MIG-II beneficiaries.
4 Availability and Usage The scheme is applicable for repairs and renovation.
How to avail the scheme?
STEP 1: First book an apartment and apply for a home loan.
STEP 2: Upon submitting the document, the bank evaluates your claims and sanctions it accordingly.
STEP 3: Post the claims and loan sanctions, your housing agreement gets registered and procedures corresponding to it begins.
STEP 4: Your bank/ chosen finance company will submit the claim to National Housing Bank for processing and other documentation procedures.
STEP 5: NHB (National Housing Bank) will transfer the subsidy to your bank in a timely manner.
STEP 6: Bank will deposit the subsidy to your loan account in accordance with your strand and category.
STEP 7: Loan reduces to the level of subsidy received and the reduced EMI is set for paying them at your convenience.

India has seen enormous leaps in development in the past few decades; and while there is a luxurious mansion for the rich, the poor still do not have the means and access to a decent home To change this difference in a democracy, PMAY is scheduled to make the lives of rich and moderate people to balance in an even manner. This scheme has been so popular even in cities like Chennai where the real estate sector started to focus on affordable housing projects.