Pradhan Mantri Awas Yojana For Affordable Housing

Affordable Rental Housing Complexes (ARHCs), introduced by the Ministry of Housing and Urban Affairs as a part of the Pradhan Mantri Awas Yojana-Urban (PMAY-U), seek to provide reasonably priced rental housing in close proximity to workplaces for urban migrants and economically vulnerable individuals in both the industrial sector and informal urban economy.

What is the Pradhan Mantri Awas Yojana?

Launched in June 2015, the Pradhan Mantri Awas Yojana (PMAY) by the Indian government aims to enhance housing affordability for economically weaker segments. The scheme provides eligible applicants with interest rate subsidies on home loans, aiding their first house purchase. Subsidy amounts vary across economic categories. The initiative is categorized into PMAY Urban, encompassing around 4,331 towns and cities, and PMAY Gramin, formerly Indira Gandhi Awas Yojana, targeting affordable housing in rural India, excluding Chandigarh and Delhi. The ambitious scheme’s objective is to construct nearly 20 million affordable houses by March 31, 2022.

Vital Components of Pradhan Mantri Awas Yojana

PMAY, the housing scheme initiated by the government, encompasses several key components aimed at providing affordable housing solutions to different segments of society. Here are the four main components of PMAY:

1. Credit-linked subsidy scheme (CLSS): Offers reduced EMIs on home loans through interest subsidies. Provides a maximum interest subsidy of 6.5% for individuals in EWS and LIG categories. Applicable if the loan amount remains below Rs. 6 lakh.
2. In-Situ slum redevelopment: Aims to rehabilitate slums and provide housing for lower-income families. Property prices are determined by the Central Government, with beneficiary contributions set by states or Union Territories.
3.  Affordable housing in partnership (AHP): The Central Government offers financial aid up to Rs. 1.5 lakh to EWS families to purchase a house.
4.  House construction or enhancement : Targets economically weaker sections who can’t benefit from other components. Provides up to Rs. 1.5 lakh in financial aid from the Central Government for house construction or renovation.

The Pradhan Mantri Awas Yojana (PMAY)  Best Features

1.  Subsidized Home Loan Interest: Qualified individuals opting for housing loans with a tenure of up to 20 years can avail of a reduced interest rate, capped at 6.5%.
2. Priority for Special Groups: Senior citizens and differently-abled applicants are given preference for ground-floor property allocation, ensuring convenience and accessibility.
3. Eco-friendly Construction: The initiative promotes environmentally conscious practices by employing sustainable and eco-friendly technologies during the construction of houses.
4. Income-based Interest Subsidy: The extent of the interest subsidy is determined by the applicant’s income bracket and loan amount. Notably, any loan exceeding the subsidized limit will incur a non-subsidised interest rate.

Advantages of Pradhan Mantri Awas Yojana

Here are some key advantages of the Pradhan Mantri Awas Yojana:

1. Ensuring affordable housing options
2. Supporting the redevelopment of slum areas
3. Empowering women through homeownership opportunities
4. Enabling access to economical housing for all societal segments

To sum up, ARHCs under PMAY-U aim to offer affordable rental housing to urban migrants and disadvantaged individuals. PMAY provides interest rate subsidies, emphasizes credit-linked subsidies, slum redevelopment, partnership housing, and eco-friendly practices. It effectively addresses housing needs, slum improvement, empowerment, and accessibility.