The “Housing for All” scheme was earlier launched by the Government of India. Now, it has been reformed as the Pradhan Mantri Awas Yojana (PMAY) and is already active. It aims to provide housing to all Indian citizens by the year 2022. Under this scheme, more than two crore houses will be constructed. The scheme started in the year 2015 and will end in 2022. The primary targets of the initiatives are people, who are living under LIG and EWS categories in urban establishments, and the poor.
Phase 1 of the program was from April 2015 to March 2017. A total of 100 cities came under its purview. The Phase 2 will be from April 2017 to March 2019, where more than 200 cities will be covered and also developed. The last phase is from April 2019 to March 2022. Remaining cities will be covered in this phase. Beneficiaries covered under the program include women (irrespective of religion or caste), economically weaker sections of the society (EWS), LIG, MIG 1, MIG 2, schedule castes and schedule tribes.
The Indian Government will be providing subsidy of up to INR 2.30 lacs so that they can buy a home for themselves and their families. Primary features of “Housing for All 2022” include usage of eco-friendly technology for constructing houses under PMAY, allotting ground floors t the elderly and differently-abled, preference to female members during allotment and also female applicants and finally, provision of 6.5 percent interest subsidy on housing loans availed for a period of 15 years from the start of the loan.
The primary components of “Housing for All 2022” are;
An online application process for the scheme will be put in place to increase and fast-forward the number of application people make under the program. The homeless and urban poor families will greatly benefit from the online process. They can also apply for PMAY via CSC, which basically are common service centres in urban as well as rural areas. These centres are responsible for delivering various government services to Indian citizens. This will, in turn, help achieve the Digital India Mission.
Details about the online submission of PMAY are given below;
Of course, this leads to the obvious question of how to find the CSC centres in one’s city. This process is simple too. All one has to do is visit the site http://gis.csc.gov.in/locator/csc.aspx. Enter state, district and block names, and click on “Search.” This will provide the details of the nearest available CSC in one’s city, state or village. It is also possible to search a name in this scheme portal. This will help people know whether they are eligible for the PMAY or not. BPL certificate documents have to be submitted.
The bank will notify if someone is eligible or not. There is also a way online. For this, one has to visit http://pmaymis.gov.in/Search_Name.aspx. Here one will find a list of beneficiaries available within the site. This list is constantly updated. PMAY toll-free numbers are 800-11-6163, 1800-11-3388 and 1800-11-3377. Prime Minister Shri Narendra Modi has also stated that the government will extend the interest subsidy benefit to two new groups of homebuyers based no income criteria. These two new subsidy schemes are expected to have a tremendous positive impact on the real estate growth in the country.
The Government of India has announced that people having annual earnings of INR 18 lacs, will enjoy cheaper property rates on their first home purchase. However, the housing loan should have repayment tenure of 20 years. On meeting the conditions, the cost of the house will dip by INR 2.4 lacs. Currently, this subsidy scheme is available only for those who have annual earnings of not more than INR 6 lacs. The existing home loan tenure limit has been raised to 20 years from 15 years.
Whether it’s the old scheme or the two new schemes, in case the loan is taken for tenure of 20 years, the property purchased will be cheaper by INR 2.4 lacs. Moreover, the per-month instalments will see a reduction of approximately INR 2,200. If the person is in the income tax bracket of 30 percent, he will be eligible for tax benefits as well, which may run as high as INR 61,800 per year.