How to Apply to Pradhan Mantri Awas Yojana
Food, clothes and shelter This is a basic requirement for every human being to live their lives And out of this one requirement, that is shelter, or homes. So that every person can have their own house To fulfil this, our government launched a scheme Pradhan Mantri Awas Yojana.
This scheme was launched some time back In which there are a lot of provisions Which people think are very complex So in this blog today we are going to talk about Pradhan Mantri Awas Yojana And in great detail we will talk about what this is How you can get the benefit of this Are you eligible for this or not And how successful this scheme has been until now.
How this scheme impacts the economy
If I talk about the Pradhan Mantri Awas Yojana it mainly works in two different categories in two different ways Like if I talk about the first category then that is of urban areas like, cities Second, is in Gramin areas.
So it works in different ways in both these places In different places you are eligible for this in different ways And both were started at different times So you have understood that this has two categories. So first I will tell you three things about the Pradhan Mantri Awas Yojana When this scheme was started? What its overall objective was? And if I talk about its stats currently How much have they been able to meet their objective or not?
We will talk about that If I talk about when this scheme was started So, friends, Pradhan Mantri Awas Yojana, for urban people Was started in June 2015, for the first time But apart from this. if I talk about Gramin people So in the Gramin sector a different scheme used to operate with a different name Changing which In March 2016, it was brought under this scheme Because of which the Pradhan Mantri Awas Yojana currently operates in two regions Urban and Rural.
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Now if I talk about what the objective was to bring about the Pradhan Mantri Awas Yojana, then it had only one objective That in India, every person should have their own house To buy their own house Your minimum requirement.
How can the government help you with that?
So that by 2022, every person in India can have their own house Now you must be thinking why India chose 2022 as their target? If I talk about 2022, it is very important for us Indians And this is important for two reasons If I talk about the first reason Mahatma Gandhi’s birth anniversary In 2022, it will be his 150th birth anniversary.
Because of which this becomes an important year If I talk about the second reason, then you already know that India became independent in 1947 And in 2022, India will have been independent for 75 years Because of which 2022 becomes very important for India And that is why the government chose 2022 as their target.
That they will try to ensure That by 2022, which is a very special year By then, every person should have their own house Now let us talk about stats About how this scheme has performed until now.
How many houses have been built under this scheme and how many are going to be built As you can see on my screen, we have taken this data from the government website. Which tells us how this scheme has performed until now And what their achievements have been until now.
If I tell you about the cutoff date We have these numbers until December 2019. As you can see The housing demand, the demand to make houses was 112 lakhs But out of that, until now 103 lakh houses have been sanctioned Which means that out of the demand of 112 lakhs, 103 houses For them, there was already a subsidy for loans That has been sanctioned until now.
If I talk about how many houses out of these have been built until now So 32 lakh houses have been made and delivered when people raised the demand for this And now there are 60 lakh houses that are under construction Now let us talk about the houses that have been built until now.
The houses that have been sanctioned, in which state is it the most? So if I talk about the state in which these houses have been built the most then that state is Andhra Pradesh In it, until now 20% of the houses have been built under this scheme And after Andhra Pradesh comes Uttar Pradesh In which this percentage is around 15% Now let us come to the most important question
Who all are eligible under this scheme?
Which means that if you have to apply for this scheme What is their eligibility and what are the eligibility criteria? So if I talk about eligibility then the first eligibility criteria is until now you should not have any house in India If you have a house of your own You cannot apply under this scheme Second, if you are a married couple Neither of you should have a house of your own Which means that it cannot happen that you are newly married.
You don’t have a house in your name But there is a house in your wife’s name So in that case as well you cannot enjoy the benefits of this scheme Third, if under any other scheme, like the government has come out with many scheme That come under housing.
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So if you want to take benefit under this scheme you should not be registered under any of the housing schemes you should not have taken the benefit from any other scheme so if you clear these three things, then you are eligible to apply for this scheme now i will come to the further criteria that if you fulfil these criteria what are the further criteria if you want to apply.
so if i talk more about pradhan mantri awas yojana they have further divided this scheme in three categories depending upon the income of indian citizens so the three categories they have made are first, economically weak or lower income group second category is medium income group, type 1 and the third if medium income group type 2 now in all three categories there are different eligibility criteria.
if you have cleared the top level criteria after that you can get subsidy in different ways and you can get benefit in different ways now let us talk in detail that for all three categories.
what the eligibility is and what is the maximum benefit you can take let us talk in detail about the first category so in the first category, two types of people come first, ews, economically weaker section whose income is less than 3 lakhs and the second is low income group whose family’s income is between 3-6 lakhs so how can you get the benefit in this category.
if i explain this to you with a very simple example consider you take a loan to build a house consider of 12 lakhs and on that the interest the bank charges you is of 10% so the government says here that the people who come in this category out of their total loan amount they can claim a subsidy of 6 lakhs so here you have to get out of misconceptions here, you are not getting a benefit of 6 lakhs but out of the total loan amount, 6 lakhs you can take subsidy on the interest now comes the topic of how much subsidy you can take on the interest.
How to Apply to Pradhan Mantri Awas Yojana
i will explain this to you in detail with the same example in this case the bank told you that on the total loan amount they will charge you a 10% interest now the government says here that, no matter the loan amount out of that on an amount of 6 lakhs the government will give you a 6.4% subsidy so here the subsidy that you get and the benefits you enjoy that will be around 6.5% on an amount of 6 lakhs.
now you have understood that in your loan amount, on 6 lakhs you will have to give less interest now you must want to know how much benefit you will get on an absolute number.
so if you lie in this income group the maximum benefit you can get that can be only up to 2,67,000 but here, in the eligibility criteria. there was another very important thing. which we didn’t pay attention to about which i will tell you in detail now the government says that whenever you apply under this scheme among the owners, there has to be one woman which means that it can happen that there is another owner but the co-owner has to be a woman.
so if you have to apply to this scheme then in the ownership it is crucial to have a woman. now i will talk about the second category and the second category is middle income category category one even this is divided in two categories, category 1 and category 2 so in category 1 those people come, whose income is between 6 lakhs to 12 lakhs here, the subsidy you get on the total loan amount that amount here, increases from 6 lakhs and is 9 lakhs here, no matter what your loan amount is, consider that your loan amount is 30 lakhs out of that you will get a subsidy of 4% on an amount of 9 lakhs.
Pradhan Mantri Awas Yojana
Now i will explain in a little more detail consider that you went to the bank to get a loan and you meet all the criteria you took a loan of 30 lakhs and the bank told you that they will charge you an interest of 10% before you would have to pay a 10% on the entire 30 lakhs amount but under this scheme.
if i remove 9 lakhs separate from the 30 lakhs on that instead of 10% you would have to pay only 6% interest because the government has given you a 4% interest subsidy on 9 lakhs so here the maximum benefit you can get in terms of real money that can be 2,35,000.
Now i will talk about the third category middle income group type 2 those people whose income comes between 12 lakhs -18 lakhs here the subsidy that the government gives you they give only 3% but your loan amount can increase from 9 lakhs and become 12 lakhs which means that no matter the loan amount up to a loan amount of 12 lakhs.
you will get a subsidy of 3% same example, if the bank gives you an interest rate of 10% so only on an amount of 12 lakhs. you will have to pay an interest rate of 7% so here i want to tell you a small but very important thing the people who come in the middle income group type 1 and type 2 this scheme that they get this scheme will get over for them in march 2020 after that you can take the benefits under this.
if i talk about the first category in which economically weaker or low income group come this scheme will go on until march 2022. so if you come under the second and third category you can go and take the benefit of this if you are eligible for this.
now i will come to the most important question now if you feel that you are eligible under this category and you should apply in this if you are planning on building a house in the coming time now the question comes,
how should i apply?
Do i have to go to the government to apply, what is the way for this? So if you fall under any category in this scheme and are eligible you can go to any bank through which you want to take your housing loan you can go to that bank and tell them you want to take a loan under this scheme after that, the bank will work as an intermediary the bank will take all the documents from you, you will have to submit al the documents to them then the bank will try to give you the benefit of this scheme the subsidy you get will be ensured by the bank so you have to go to the bank and submit your documents to them and after that everything will be taken care of by the bank.
Now i will talk a little for the investors a lot of investors, try to know, in different ways what are the sectors that can benefit from this scheme? Because whenever the government brings out a scheme there are a lot of sectors that get involved in the scheme who have to get involved like if i tell you in simple terms then in pradhan mantri awas yojana first, banks are involved because they take care of the entire process and the interest rate that the banks get will be the same, that is consider 10%.
the subsidy which is the remaining amount the government will pay that to the bank which means that the bank has no loss in this but if houses are built then other sectors also get involved which directly or indirectly get some benefit as you can see on my screen.
these are the different sectors that work around the housing sector which means that if anything happens in the housing sector these things are directly or indirectly benefited a lot so this was to try to explain to you whenever you think of investing in the longer horizon you have to see the other sectors that get benefited from this according to that, you should look at your risk then you should decide where you have to invest so this article we got was only to make you understand what the government schemes are and one very important scheme out of that pradhan mantri awas yojana.