The Pradhan Mantri Awas Yojana was started by the Indian government with the aim to provide affordable houses with all the basic facilities to those who cannot afford to buy or build one. The PMAY beneficiaries are people from the Economically Weaker Sections (EWS), Low-Income Groups (LIG), and Mid-Income Groups (MIG) in the country. The benefits of this scheme include affordable housing, low-interest (subsidy) home loans from banks and other financial organizations, free financial assistance, and more.
Benefits of Pradhan Mantri Awas Yojana (PMAY)
Pradhan Mantri Awas Yojana is beneficial for the economically poor people, low-income families, and women who cannot afford their own houses. The government plans to build as many as 2 crores affordable pucca houses for the urban poor and slum dwellers by the year 2022.
The top advantages of the PMAY scheme are mentioned below.
Housing for all
Under the PMAY scheme, the government will make 2 crore affordable houses for the slum dwellers and low-income families living in the urban areas of the country. Many people have already been allotted affordable houses under this scheme. More than 50% of the total population living in the urban cities does not have their own houses. The government aims to provide houses to all of them. Instead of buying houses built by the government, a PMAY beneficiary can also choose to build his own house by taking a loan under the scheme.
The best benefit of the PMAY scheme is the subsidy on the loan interest rate. The normal interest rate for the home loan is around 10% but PMAY beneficiaries can get affordable housing loans at reduced interest rate of 6.5%. The remaining amount will be paid by the government. The subsidy will be granted on the home loans amounting up to 6 lakh for a term period of up to 15 years. This effectively reduces the monthly interest amount charged on the housing loans by the banks and other financial companies in India. This will greatly help poor people, especially the lower income class families who can now avail home loans at reduced interest rate.
House is one of the most important necessities for human existence. By owning a proper house, one can ensure proper development of himself and his family. Your house gives a roof for you and your family so that you have never to be afraid of being homeless. It leads to the development of the individuals, which in turn leads to the overall development of the nation. The development of so many houses under one project has also created a boost in the real estate and construction industry of the country.
The central government will grant a cash subsidy of up to Rs. 1 lakh to 2.3 lakh to people belonging to the EWS and LIG categories who want to build or repair their houses. The subsidy amount will be given only to those who are eligible under the PMAY scheme.
Benefits to Women and OBC candidates
Special preference will be given to women and other backward class applicants under the PMAY scheme. The basic aim is to increase women-empowerment by making every woman independent. This also makes it a pro-women scheme.
Eco-friendly and modern houses
The government has strictly instructed all the contractors and builders to employ eco-friendly construction technologies and equipment when building or remodeling a house under the PMAY scheme. All the houses are mandatory to have regular electricity and water connection and in-house toilet facilities.
Any EWS, LIG or MIG category citizen who already owns a house can also apply for a loan at reduced interest rate under the PMAY scheme for the renovation of the house or to add a kitchen, bathroom or more rooms to the house.
The central government in association with private developers is going to develop affordable houses using the slum land as a resource. This will help in the development of slum areas of the country and in improving the life status of slum dwellers.
India (In terms of growth) before PMAY and after PMAY
The Pradhan Mantri Awas Yojana was started with a positive thought of improving the life quality and status of the citizens in low-income classes of the country. The government wanted to reduce the poverty level of the country by providing affordable houses to the economically backward citizens. The scheme had the power to achieve everything that was promised by the government and it would have been a very successful project only if it was not backed by a lazy administration and reluctant audience.
The PMAY scheme was announced and officially inaugurated in mid-2015 but the actual work started only after a year. The progress rate of both the PMAY-rural and PMAY-urban schemes has been very slow since their inception. The PMAY rural (gramin) scheme had a delayed start in November 2016 and the authorities could only complete 885 houses by the financial year 2017. The actual target is to build 44 lakh houses by the end of 2017, which now seems almost impossible. The urban housing scheme (PMAY-U) is also progressing very slowly. Since the launch of PMAY-U in mid-2015, the government could only build 44,000 houses till March 2017, while the original target was to complete 16.3 houses till date.
The government is also far behind in the allocation of the promised budget for the scheme. This has effectively put a hold on the further growth of the scheme. The reluctance of the beneficiaries is another major reason for the slow growth of this scheme. Even if the government was doing everything to promote and implement the scheme, many of EWS and LIG category people do not show enough enthusiasm to participate in the process.
The Pradhan Mantri Awas Yojana was started with a positive aim and the Indian citizens still trust the government to fulfill its promises. No doubt, it is a great scheme and can do wonders for the growth of our country and its citizens. The PMAY scheme has already started improving the life quality and status of the thousands of low-income families by providing them affordable houses with the promise of a secure future. We hope that it only grows further now and benefit as many people as possible.