As we all know budget for 2024 is out and set to make Indians proud with its new updates. Finance Minister Nirmala Sitharaman made a significant stride towards addressing the housing needs of the middle class. Everyone has a right to live under their own shade, and the government of India is colouring it true.
This initiative is part of the broader goal of achieving “Housing for All,” aiming to elevate living standards and make homeownership more accessible nationwide. The focus groups of these schemes are individuals and families living in rented accommodations, slums, chawls, and unauthorised colonies.
PMAY Scheme
Pradhan Mantri Awas Yojana (PMAY) is a cornerstone of affordable housing. Basically, the PMAY scheme helps by providing a subsidy on home loan interest rates. The best part of this scheme is, that it includes a larger chunk of the society, including the Economically Weaker Section (EWS), Low Income Group (LIG), and Middle-Income Groups (MIG I and MIG II).
To further aid first-time homebuyers, the government has implemented specific tax deductions under the Income Tax Act of 1961, such as Section 80EE and Section 80EEA. Section 80EE permits an additional deduction of Rs 50,000, and Section 80EEA offers an extra deduction of Rs 1.5 lakh.
The PMAY scheme is also tailored to meet the needs of families of different sizes by setting specific carpet area requirements. It offers an interest subsidy of 6.5%, 4%, and 3% for loans up to Rs 6 lakh, Rs 9 lakh, and Rs 12 lakh, respectively. This thoughtful structuring of the scheme ensures the goodwill of EWS/LIG beneficiaries.
PMAY Walkthrough
The Pradhan Mantri Awas Yojana (PMAY) is a government plan to ensure everyone can afford a home by 2024. Know:
Who Can Get Help?
- Families that don’t make more than INR 18 lakhs a year.
- If you or your family don’t own a solid, permanent house anywhere in India.
- The plan prefers homes to be registered in a woman’s name, alone or with others.
What’s Good About It?
- People who qualify can get help paying their home loan interest. This means cheaper loans!
- Depending on your income, the government will make your loan cheaper by covering part of the interest.
- It’s for both city dwellers and people from rural areas, covering thousands of towns and villages.
How to Apply?
- You can fill out a form on the PMAY website or at a bank that works with PMAY.
- You’ll need to give some details about yourself, how much you earn, and about the house you want to buy or build.
What Documents You Need to Apply?
- ID proof (like Aadhaar or Voter ID)
- Address proof (like a utility bill or bank statement)
- Income proof (to show how much you earn)
- Details about the house you’re planning to buy or build
