Fulfil your Dream of Owning a Home in 2019 with PMAY

by Atish Nair Consultant, writer

Buying a home of your own is one of the biggest achievements of life. But the rising cost of real estate in India, especially in urban cities, has made this an unachievable dream for most. To make this dream a reality for the masses, the government launched the Pradhan Mantri Awas Yojana in 2015.

This initiative by the government is aimed at making housing affordable for Indians. If you too have an unrealised dream of buying a home of your own, these are some of the benefits of the scheme that can help you become a homeowner as soon as the next year-

1. Interest Rate Subsidy

The only way how most Indians can afford to buy a home is through a home loan. The interest on home loans starts around 10%. However, with the help of the scheme, people from EWS/LIG category can get an interest rate subsidy of up to 6.5% on loan amount of up to Rs. 6 lakhs.

The same for MIG-I and MIG-II is 4%, and 3% on loan amounts up to Rs. 9 lakhs and 12 lakhs respectively. However, the subsidised interest rate would not be applicable on loan amounts higher than the maximum threshold under the scheme.

2. Interest Subsidy on Home Construction

Apart from buying your first home, the interest subsidy is also available for home construction for people from EWS, LIG, MIG I and MIG II category. However, the carpet area of the home can only be up to 30 sq. Meters in EWS category and up to 60 sq. Meter for LIG. For MIG I, the carpet area can be up to 90 sq. Meter and up to 110 sq. Meter for MIG II.

Even if you already own a home but want to extend or renovate it, you can take advantage of the interest subsidy under the scheme.

3. Preference to Female Owners

The Pradhan Mantri Awas Yojana is a pro-women scheme. Females are given preference in house allotment over males. Also, for EWS/LIG category, it is compulsory to have a women co-owner for the house. However, for MIG category, female ownership is not mandatory but preferred.

If the property is registered on a female name, there is also a concession on stamp duty. Many of banks also offer concession on the interest rate for women. All of this is done to encourage women to purchase houses.

4. Slum area Development

By teaming up with private developers and using land as a resource, the government is aiming to unlock the potential of land used for slums and offer houses to the eligible slum dwellers. This would also help bring slum dwellers under the ambit of urban settlement.

The government will give grants of up to Rs. 1 lakh per house to eligible slum dwellers for their rehabilitation.

5. Affordable Housing

As per the PMAY scheme, the government would also construct more than 2 crore affordable houses throughout the country. More than 50 lakh such houses were already approved until June 2018, and the government is planning to sanction 30 lakh more units until March 2019.

Private and public sector developers have united for the affordable housing program and the houses constructed under this scheme have all the basic amenities like electricity, gas, water, sanitation, road, and basic hygiene.


No matter if you belong to EWS, LIG, or MIG category, if this is the first time that you’re planning to buy a house, you are sure to benefit under the scheme. Look for a lender that is linked to the scheme to know more about the benefits in detail and accomplish your dream of buying a home.

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About Atish Nair Freshman   Consultant, writer

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Joined APSense since, August 2nd, 2017, From Mumbai, India.

Created on Nov 29th 2018 03:05. Viewed 728 times.


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