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How To Get A Home Under Pradhan Mantri Awas Yojana?

Mr. C.S. Sudheer | Updated On Monday, January 09,2017, 06:58 PM
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How To Get A Home Under Pradhan Mantri Awas Yojana?

 

Every citizen of India has this dream….To own a home. Sure, the rich and the upper class can easily afford to buy their own home. But…what about the poor and the middle class? Will they ever own a home?

The Prime Minister on his New Year Speech says…. So many years have passed after Independence. Yet, the poor in our country, do not have their own home. Houses are out of reach of even the middle class. The Government wants the poor, middle class and the neo middle class, to have their own home.

The answer Pradhan Mantri Awas Yojana.  The aim of this scheme….Provide affordable housing to all citizens in India. This scheme was earlier known as the ‘Housing For All’ Scheme. The ‘Housing For All’ has been reformed and is now called Pradhan Mantri Awas Yojana. So how does Pradhan Mantri Awas Yojana give you a home?

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What is the eligibility for a house under Pradhan Mantri Awas Yojana?

You can apply for a house under Pradhan Mantri Awas Yojana, if you belong to the low income group (LIG) and the economically weaker sections of society (EWS):

  • You do not own a pucca house, either in your name or in the name of any member of your family. For those who don’t know, houses made of high quality material are called pucca houses.
  • Your family should comprise of you and spouse and unmarried children. (Husband + Wife + Unmarried children).
  • Households having an annual income up to INR 3 Lakhs, are the economically weaker section. Households having an annual income between INR 3 Lakhs and INR 6 Lakhs, are the low income group. If you belong to the low income group and economically weaker sections of society, you must show proof of income or make an affidavit.
  • Females would be given preference for houses under this scheme. This scheme is a pro-woman scheme.
  • Older citizens and the disabled, would be given preference over able-bodied citizens, while applying for a house on the ground floor.

 

How to buy a house under the Pradhan Mantri Awas Yojana?

You can buy or book a house, under the Pradhan Mantri Awas Yojana. The Government plans to build more than 2 crore houses under the scheme.  You can also book or buy a house under a private project, where 30% of houses may be booked for economically weaker sections.

You can avail a loan under this scheme and build your own house. Your house must be constructed in an eco- friendly manner. This house must have toilets.

If you have already bought a house under the Pradhan Mantri Awas Yojana, you cannot apply for a new house. You can avail a loan under the Pradhan Mantri Awas Yojana, for the repair and renovation of an existing house.

How to apply for a house under the Pradhan Mantri Awas Yojana?

  • If you meet the eligibility criteria under the Pradhan Mantri Awas Yojana or if you are a slum dweller, you can apply for a house. Just visit here
  • You simply click on Citizen Application.
  • You then click on ‘benefit under 3 components’ if you belong to the low income group or the economically weaker sections and submit the Format-B applications.
  • You then simply track your status by clicking on ‘track your application status’.

 

Want to find if your name is in the beneficiary list? Just click here.

How to get an interest subsidy under Pradhan Mantri Awas Yojana?

You can apply for a house under Pradhan Mantri Awas Yojana and if you are lucky, you may get it. You have got your home….But, you don’t have the money to buy it. The Government gives you an opportunity to avail a home loan under this scheme. You can apply for a home loan from Scheduled Commercial Banks, Housing Finance Companies or even Urban Cooperative banks.

If you avail a home loan up to INR 9 Lakhs, then you get a home loan interest rebate of 4%. If the current home loan interest rate, banks charge for home loans is 10%,  you are charged an interest rate of just 6%. You need to avail the home loan in 2017. If you avail a home loan up to INR 12 Lakhs, then you get a home loan interest rebate of 3%. You need to avail the home loan in 2017.

If the current home loan interest rate, banks charge for home loans is 10%, you are charged an interest rate of just 7%. If you avail a home loan under Pradhan Mantri Awas Yojana more than the limit of INR 12 Lakhs, you are charged interest at market rates.

So, why are you waiting? The Prime Minister has given you this one chance to own a home. Grab it with both hands. Be Wise, Get Rich.

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Article Author

Mr. C.S. Sudheer

Mr C.S.Sudheer is a management graduate. He started his career with ICICI Prudential Life Insurance and later on worked with Howden India. After his brief stint in Howden India, he moved on and incorporated Suvision Holdings Pvt Ltd which is the sole promoter of IndianMoney.com. He aims to build a nation that is financially literate with investment savvy citizens.

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