Subsidy in Pradhan Mantri Awas Yojana
The PM Awas Yojana aims in providing housing facilities to the Indian citizens, especially those who cannot afford to build a house of their own. This flagship scheme of housing development was started from April, 2015 by the Modi Govt. Under this scheme, the govt. will provide subsidy in housing loan interests to the beneficiaries. The credit linked subsidy will be given to the beneficiaries by providing them low interest rates on the home loans and to offer them easy EMI schemes so that they can repay their loan. The weaker sections of the society and women will be benefited the most through the subsidized housing loans by the central govt.
Subsidized interest rates to be applicable under the PM Awas Yojana
As per the scheme, the Govt. will provide housing loans to the weaker sections of the society by offering them low interest home loans and easy EMI options. Special subsidized rate of housing loan has been decided by the Housing Ministry of the central govt. so that every citizen can now make their dream of having their own house, come true. The subsidy rate decided under the P M Awas Yojana is 6.5 % per annum. This rate is quite low, compared to the present housing rates available in the market which ranges from 10 – 12 %.
Subsidy amount under the Awas Yojana
The Govt. has decided to provide subsidy to build houses under the Prime Minister Awas Yojana. The amount that can be subsidized ranges from Rs. 1 lakh, up to 2.5 lakh. This subsidy will be given only to the backward classes and weaker sections of the society, those who do not have necessary financial strength to build houses by their won. In an average, all the beneficiaries will get a subsidy of Rs. 1 lakh under this mass housing project. In addition to this subsidy, if the beneficiary resides in an urban city and is financially weaker, then they may be granted subsidy amount of Rs. 1.5 lakh for house building and renovating their old houses. Thus, maximum of Rs. 2.5 lakh can be availed as subsidy.
- Some information regarding the subsidy and other fields in the PM Awas Yojana
Name of scheme
Pradhan Mantri Awas Yojana
|Year of launch||April 2015|
|Year of completion||March 2022|
|Governing Body||Ministry of Housing and Urban Poverty Alleviation, Govt. of India|
|No. of phases for implementation||3 phases PMAY|
|Nature of beneficiary||Economically backward classes, citizens belonging to Scheduled Castes, Scheduled Tribes, Women, Senior citizens, Physically disabled, etc.|
|Subsidized Housing interest rate||6.5 %|
|Present interest rate in other housing schemes||10 – 12 %|
|Amount of subsidy to be provided||Rs. 1 lakh – Rs. 2.5 lakh|
|Span of housing loan||15 years|
|Financial institution involved||National Housing Bank|
|Maximum limit of property amount||6 lakh|
- Easy EMI structures under the PM Awas Yojana
After the loan is sanctioned under this scheme, the beneficiaries get 15 years time period to pay off the loan amount. The payment is done in easy monthly installments, set by the National Housing Bank. The interest charged is at 6.5 % which is very low compared to the other house loan interests.