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A home is a dream as well as a necessity for many people. Also, To ensure that this basic necessity is available to all the poor people in the rural and urban areas. Thus, the Government of India has taken a very ambitious and serious step.

Thus, The step is Pradhan Mantri Awas Yojana whose main objective is to provide housing to all by 2022. The scheme was launch in the year 2015 with a mission of constructing more than two crore houses across the country within seven years time period.

The scheme initially focussed on the economically weaker sections and lower income groups of the society, but later on covered the middle-income groups as well.

This is a credit link subsidy scheme and a feasible Home Loan option for the poor. Thus, The features and eligibility criteria of the scheme make it clear that the scheme has been introduce for the benefit of the poor citizens of the country.

• Eligibility Criteria for Pradhan Mantri Awas Yojana (PMAY)

The PMAY eligibility criteria have been set keeping in mind the objective of the scheme. Following categories of people are eligible to avail the scheme –

1. Any individual/group who does not own a pucca house.
2. Individuals belonging to the Economically Weaker Section (EWS) of the society with income not exceeding Rs.3 lacs per annum.
3. Individuals belonging to the Lower Income Group (LIG) of the society with income not exceeding Rs.6 lacs per annum.
4. Women belonging to the EWS and LIG categories.
5. Individuals/households belonging to Scheduled Castes, Scheduled Tribes, and Other Backward Class.

• Components of Pradhan Mantri Awas Yojana (PMAY)

The scheme of PMAY is operative in 4 different components. The components are as follows-

1. Credit Linked Subsidy – Under this component, a subsidy is given on housing loans
2. a) To the weaker economic sections of the society.
3. b) For new construction or new additions.
4. c) For amounts up to Rs.12 Lacs.
5. Beneficiary led individual house construction or enhancement

An assistance of Rs. 1.5 lacs is give under this component. So, This assistance is offering to eligible families belonging to the economically weaker sections of the society,

3. Transformation of Slum Areas-

This component deals with rehabilitation of slum dwellers with the help of private developers using land as a resource. Also, A slum rehabilitation grant of Rs.1 lac per house allows for all houses build for eligible slum dwellers in all such projects.

4. Affordable housing in partnership-

Under this component. Thus, financial assistance is give to the economically weaker sections for houses build with different partnerships by States/Union Territories/Cities.

• How does PMAY help the poor?

The government has taken several measures through this scheme to promote and encourage poor families for owning houses according to their financial capacity. The scheme is beneficial to the people in the following ways –

1. Easy Access to Housing Loans – The scheme provides easy access to Home Loans for the poor people.
2. Interest Subsidy– Interest subsidy of 6.5% on housing loans is granted to the beneficiaries for a period of 15 years from the start of the loan.
3. Eco-friendly Technology – The construction of houses under PMAY is carried out using eco-friendly technology.
4. Tax Incentive – The Home Loans under this scheme are eligible for tax benefits.
5. Integrated Land Information System– The Government has allocated a budget of Rs.150 crores for setting up an Integrated Land Information System. Thus, This would resolve the land rights problems faced by the poor people in the rural areas.

The Bottom Line

Thus, The main objective of the Pradhan Mantri Awas Yojana revolves around the economically weak and poor sections of the society. The scheme is undoubtedly a feasible Home Loan option for the poor people of our country.