As a result of rapid urbanization in recent decades, there has been a significant rise in the housing demand in various metro cities across the country. However, due to the rising cost of real estate and a shortage of affordable housing, a large segment of the urban population lives in rented apartments. Purchasing a property in an urban area has become an expensive deal and hence the Government of India has launched a housing policy to make housing more affordable for all sections of the society.
On June 1st, 2015, the honorable Prime Minister of India, Narendra Modi introduced ‘The Pradhan Mantri Awas Yojana – Urban (PMAY-U)’. The PMAY urban Scheme is an initiative launched by the Government of India that aims at providing affordable housing to the urban poor by the year 2022.
The PMAY scheme will also be helpful in reducing the gap between housing demand and supply in India. As a part of the PMAY scheme, affordable houses will be built in selected cities and towns for the benefit of the urban population belonging to the financially weaker section. Moreover, under the Credit Linked Subsidy Scheme, beneficiaries under the PMAY scheme are eligible for interest subsidy if they avail a housing loan to purchase a house. It has also been announced that the GST rate applicable on home loans will be reduced from 12% to 8% for those who apply for a loan under the PMAY scheme.
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Investment commitments of Rs 1.5 lakh crore have been approved under the PMAY-U scheme. This is to ensure smooth construction of 2 crore affordable houses in prominent urban areas for the eligible beneficiaries. The construction of these homes has already begun in some of the states such as Maharashtra, West Bengal, Tamil Nadu, etc. With the help of PMAY scheme, the government will successfully be able to enhance the standard of living of many citizens across the country.
Another important aspect is that the developers have been instructed to construct houses using eco-friendly construction technology and materials. This will reduce the environmental damage in and around the construction sites and will also lower the pollution to a certain extent.
Now that you are well aware of the several benefits of the PMAY scheme, you should check the eligibility criteria to see whether you qualify as a beneficiary for this scheme. If you happen to satisfy the eligibility criteria, you can consider applying for a home loan to finance the purchase of your property under the PMAY scheme. Make sure that you compare various financial institutions and home loan offers before making the final decision. This will help you avail a home loan that best suits your needs.
Opting for Bajaj Finserv Home Loan comes with several benefits such as flexible repayment option, competitive interest rate, easy application process, instant approval and quick disbursal of the loan amount.
So, what are you waiting for? Avail a home loan and make the most of PMAY, the finest housing policy in India.
Read more about Government Housing Schemes
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