A complete guide to purchasing a property in India
When it comes to purchasing a property in India, one must be extremely careful and err on the cautious…Read More
The PMAY (Pradhan Mantri Awas Yojana) scheme, introduced in June 2015focuses on providing affordable housing for selected categories of the society by the year 2020. The scheme was introduced by Prime Minister Narendra Modi to provide affordable housing for the poor in the urban areas of the country.
PMAY scheme has four components including in-situ slum redevelopment, affordable housing through credit linked subsidy, affordable housing in partnership with private and public sector and beneficiary led house construction or enhancement.
Under the credit linked subsidy of the PMAY scheme, focus is placed on the Economic Weaker Section (EWS), Lower Income Group (LIG) and Middle Income Group (MIG-I) and Middle Income Group (MIG-II). Below is a brief description of the four categories:
There are a few more eligibility points one can keep in mind:
Housing finance companies provide data to the NHB periodically to raise the subsidy claim. Post this, the NHB (National Housing Bank) cross-checks the data on the basis of PMAY scheme norms, releases the subsidy in favour of the HFC (Housing finance company) which later gets transferred into the loan account of the customer and the EMIs get reduced.