PMAY: Housing for All boosts economy

Pradhan Mantri Awas Yojana(PMAY) has boosted the Real Estate sector. With the help of the government initiative many developers and builders who used to deliver luxury projects, now they have jumped to the affordable housing market. Several facts and figures revealed related to the PMAY scheme in an email interaction with Rajeev Kumar, Jain Additional Director General (M&C) who replied on behalf of Mr. Hardeep Singh Puri, the Union Minister of State with Independent Charge in the Ministry of Housing and Urban Affairs.

PMAY is one of the most successful schemes implemented by the Govt. The scheme “Housing for All 2022” is now left with four years. Considering the scheme, there are 4320 cities/towns are included in the mission with 51 lakhs houses sanctioned for the construction. Till date, 7.6 lakhs(approx.) houses have been constructed and are best properties in India to invest.

Till date, the total number of beneficiaries under the Credit-Linked Subsidy Scheme (CLSS) are 2,00215. CLSS is one of the components under the Pradhan Mantri Awas Yojana (PMAY) in which the Central Government offers interest subsidy to eligible customers who meet the criteria and want best properties to buy in India. The subsidy released is Rs. 4355.41 crores till date.

The increase in Carpet Area will result in more housing sales as more beneficiaries would qualify for PMAY (U) – CLSS subsidy that will also help in clearing some unsold stock. The enhancement will also improve the construction activity and will also take the housing sector forward. The increased construction activity in the housing sector has an impact on core sectors like cement, steel, machinery and other related sectors. More construction activity in the urban areas will create more jobs for both skilled and unskilled workers. This will give a boost to the economy.

Reserve Bank of India has revised the housing loan limits for Priority Sector lending (PSL)eligibility from existing Rs 28 lakhs to Rs 35 lakhs in metropolitan locations and from existing Rs 20 lakhs to Rs 25 lakhs in other centres, provided the overall cost of the dwelling unit in the metropolitan locations and at other centres does not exceed Rs 45 lakhs and Rs 30 lakhs, respectively.

How to avail the benefit of PMAY scheme?

An eligible beneficiary from Economically Weaker Section (EWS) may approach the concerned Urban Local Body and submit their form with the details for inclusion in the beneficiary list. For Credit Linked Subsidy Scheme (CLSS) they may directly approach Primary Lending Institutions (PLIs) for best property. Beneficiaries under Low-Income Group (LIG) and Middle-Income Group (MIG) who are eligible for CLSS may approach the PLIs directly.

An NRI is also eligible for the PMAY scheme if the applicant qualifies the eligibility requirements:

The income of the whole family should be less than Rs. 18 lakhs for a year, the applicant or any direct family member should not have availed for the PMAY scheme already and the applicant or the direct family member should not have a home anywhere in India.