Jun 23, 2023

Importance of PMAY Urban for Home Buyers in Cities

by Godrej Properties Limited

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The Pradhan Mantri Awas Yojana envisions affordable housing for all. Launched in 2015, the program aims to provide financial assistance to Low-Income Groups (LIG), Middle-Income Groups (MIG), and Economically Weaker Sections (EWS) through interest and credit-linked subsidies. Under PMAY Urban, the Government of India seeks to provide affordable housing solutions for homebuyers in urban areas. Outlined below are the benefits of PMAY-U.

Understanding Pradhan Mantri Awas Yojana - Urban

Although PMAY envisioned housing for all by 2022, on 10th August 2022, the government extended the PMAY-U scheme till December 2024. While Pradhan Mantri Awas Yojana benefits homebuyers from all walks of life, PMAY-U is specifically for MIG and LIG categories. At the same time, EWS and BPL (Below the Poverty Line) are supported under PMAY-G (Gramin).

PMAY Benefits

1) Subsidised Interest Rates

PMAY-U offers subsidised interest rates on home loans for first-time homebuyers from MIG and LIG. Home loans have a maximum tenure of 20 years and can be utilised for purchasing or constructing a home. Below are the eligibility criteria for Pradhan Mantri Awas Yojana online application in 2022-23:
 

DetailsLIGMIG 1MIG 2
Annual Household IncomeRs. 3-6 LakhRs. 6-12 LakhRs. 12-18 Lakh
Eligible Home LoanRs. 6 LakhRs. 9 LakhRs. 12 Lakh
Interest Subsidy6.5% p.a.4% p.a.3% p.a.
Maximum Carpet Area (sq.m.)60160200

2) Better Access to Credit

Through PMAY the government collaborates with banks and finance companies across the country to provide home loans for first-time buyers. Thus, homebuyers have wider access to credit facilities at reduced interest rates and better repayment terms.

3) Social Inclusion and Empowerment

PMAY-U facilitates social inclusion and empowers citizens through homeownership. According to a PMAY clause, a woman’s name must mandatorily be included on the house registration documents purchased under the PMAY-U scheme, even if the woman is not buying the property. Thus, PMAY promotes women’s homeownership.
 

PM Awas Yojana benefits also extend to homebuyers who are salaried women, minorities, disabled, widows, and transgender. Under specific rehabilitation programs, the scheme also helps families move out of slums and live in dignified homes.

4) Better Quality of Life

By enabling citizens to buy homes at affordable rates, PMAY-U provides a better standard of living. People live stable, secure, and dignified lives when they live in their own homes with proper facilities and access to amenities. Thus, the overall quality of life is enhanced.
 

To conclude, from the pradhan mantri awas yojana benefits listed above we can see that PMAY-U is an important housing scheme that helps fulfill citizens’ dreams of buying their first home in India’s urban areas.
 

Frequently Asked Questions

1. What is PMAY's meaning or full form?

Answer: PMAY means Pradhan Mantri Awas Yojana.

2. What documents have to be submitted while applying for PMAY-U?

Answer: Provide address and ID proof with Aadhaar and PAN Card, proof of income, and property-related documents.

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