Housing is a basic necessity for all. However, in the purview of the increasing land and real estate property cost in India, owning a home remains a dream for most. To tackle this issue and bridge the massive gap between the demand and supply for affordable and quality homes, the government of Indian introduced the PMAY or Pradhan Mantri Awas Yojana scheme in June 2015.
Under the PMAY scheme, the government aims to build more than two crore new affordable housing units in several cities by March 2022. These houses will be distributed to the eligible beneficiaries. Apart from building new housing units, under the PMAY scheme, the government also aims to make home-buying affordable for people from all sections of society.
The government aims to do this by providing a subsidy on the home loan interest rates. The subsidy is granted for both newly constructed properties as well as home construction. Additionally, to give the affordable housing segment a boost, the government revised the GST on home loans from 12% to 8%.
Since the launch of the PMAY initiative, it has benefitted several people and helped them become homeowners. Let us look at some of the key advantages of the PMAY scheme.
·Rehabilitation of the slums
The PMAY scheme is a well-thought-out initiative that aims to benefit all citizens and the economy at large. One of the primary objectives of the scheme is to eliminate the slums in the country, especially in the cities and replace them with pucca houses and upgrade the lifestyle of these slum inhabitants.
With the help of in-situ slum rehabilitation programs, the government aims to motivate the slum dwellers to move to a permanent house and leverage the land that is losing its market value due to slum.
·Housing for all
One of the most significant benefits of the Pradhan Mantri Awas Yojana is that it aims to provide a housing unit to all citizens by March 2022. Under the initiative, the government has already started constructing affordable housing units across all prominent urban areas. The construction work is in full swing in states like Tamil Nadu, Maharashtra, West Bengal, etc.
Through the construction of these houses, the government aims to upgrade the living standards, eradicate slums and poverty, and provide a roof over the head to all citizens.
·Environment friendly homes
One of the less talked about benefits of the PMAY schemes is that the homes built under the initiative are 100% environment friendly. The government has issued a strict mandate to all affordable housing unit developers to use environment-friendly construction techniques and materials.
The primary objective of this is to reduce the pollution that is usually associated with the construction work and reduce the wastage of precious raw materials. Also, all the homes built under the PMAY scheme are mandated to have all the basic amenities including a 24×7 supply of clean drinking water and electricity, gas connection, safe and hygienic-sanitary conditions, etc.
·Secures the financial future of women
Another benefit of PMAY is that it encourages women to become homeowners and apply for a home loan. As per the scheme, if a married man is applying for a loan under PMAY, he must mandatorily include his spouse as co-applicant even if she does not contribute towards repayment. This is primarily done to secure the financial future of the women, especially when they grow old or become a widow.
Thus, with so many benefits, PMAY has proved to be a boon for all.