By 2022, the NDA government has taken some steps to provide ‘housing for all’. Pradhan Minister Awaaz Yojana (PMA) recently extended its income taxation to the needs of the midsize group housing, economically weakened sections (EWS) and low-income group (LIG). Earlier this month, Prime Minister doubled the amount of loan required for interest benefits to 12 lakh under PMA in urban areas.
What is PMAY?
PMAY was launched in June 2015. The government proposes to construct affordable houses with water supply, sanitation and electricity supply round-the-clock. The scheme was originally intended to cover EWS (annual income exceeding 3 lakhs) and LIG (annual income exceeding 6 million), but now the middle-income group (MIG) applies.
The PMAY scheme consists of four key elements. One builds slum areas by building homes for slums. Both plans to give credit-linked subsidy to the weaker and middle-income divisions on loans taken for reconstruction or rebuilding existing housing.
Interest rates from 3% to 6.5% for loans between Rs 6 lakh and Rs 12 lakh have been announced. EWS and LIG categories have a debt of up to Rs 6 lakh and a 15-year tenure is 6.5 percent interest subsidy. There are around 20,000 loans available under this scheme. In this month, the government raised the loan amount to Rs 12 lakh, which is the middle-class revenue target. The interest subsidy on loans up to 12 lakhs is 3%. 3 percent interest subsidy in rural areas will be issued on loans up to Rs 2 lakh for building new housing or extension of old houses.
There will be a chip with the government’s financial assistance for affordable housing projects with the partnership of States / Union For EWS. Four, it extended 1.5 million direct financial aid to EWS.
Why is it important?
Today, in India’s metropolitan cities, the developers are sitting on unsold houses, with an estimated cost of 50 lakh rupees, and roughly 20 million housing units in rural and urban poor are expected to be low in the country. ₹ 5-15 lakhs. PMAY aims to address this shortage. With the increase of 12 lakh subsidized loan amount, the scheme is expected to cover most of the urban poor.
PMAY promises to promote India’s construction and realty sector to reduce conspiracy with wealthy home buyers in cities.
Why should I take care?
For the lower and middle-income groups, PMAY ₹ 1lakh ² reduces the cost of buying a home for 2.3 lakh. An increase of 12 lakh rupees for debt and the expansion of the Mid-Income Schemes scheme may result in more housing in urban poor. If you are an investor, this scheme may mean better credit growth in the sector for banks and NBFCs, combined with the falling interest rate regime. Increasing demand for affordable housing needs The banks and housing finance companies only increase the functionality and support the growth of other industries such as cement and steel.
Its time observed India’s realty majors under the leadership of their FMCG colleagues, examined below the pyramid.