Buy Your Own Dream House Under Pradhan Mantri Awas Yojana

by Pradeep Kumar Digital Marketing

Every individual has the right to own a house. To fulfill the needs and dream of the Indian citizens, the government has launched the Pradhan Mantri awas yojana. After all the hassles of the day, a house is all you need to relax your mind, body and soul. The affordable housing scheme will allow every individual to own a house of their own within their financial capability. Launched by Prime Minister Narendra Modi on June 15, 2015, where the aim is to build 2 Crore houses within a time period of 7 years. The estimated completion of building houses is by 2022. Housing for all is the scheme where EWS and LIG, scheduled tribes and schedule caste will be availed with houses.

Economically Weaker section are the households with an average annual Income of up to Rs. 1,00,000/- and Lower Income segment are the households with an annual income of Rs. 1,00,001 to 2,00,000.

Target Segment:-

· Focusing mainly on Lower Income group and economically weaker section of the society.

· This is a pro women scheme. An application form in the name of women beneficiary will be given more privileged than Men’s.

Subsidy Scheme:-

· Subsidy will be given to Individuals on a Loan of Rs.6, 00,000/- on an interest rate of 6.5% for a period of 15 year.

· Loan amount cannot exceed Rs. 6, 00,000/-.

· Duration of subsidized interest rate i.e. 6.5% will be given to the beneficiary for 15 years.

· After 15 years, the interest rate will be charged as per the ongoing market rate.

For a better Understanding, Let us take this example:-

Ram wants to buy a house under the Affordable housing scheme Launched by Pradhan Mantri awas yojana and he goes to bank x to avail the loan. Now he applies for the loan of Rs. 6, 00,000/ for a period of 20 years. Now the bank will give ram a loan with an interest rate of 6.5% for a period of 15 years and after 15 years the interest rate will increase to the market rate for home loans.

Major Components:-

· A person can also avail the loan of Rs. 1.5 Lakhs if s/he wants to go for extension or renovation of house.

· It is not important to buy a house from the pool of units available under Pradhan Mantri awas yojana. A person can also build a house on his own by availing the loan.

Points to be kept in mind:-

· 35% of houses are reserved for economically weaker section of society.

· People availing loan for extension or renovation, the carpet area should not extend 30 square meters for EWS and 60 square meters for LIG.

· If a person avail loan for Rs.7, 00,000/- then for additional amount the interest will be charged as per the normal market rate.