PMAY or Pradhan Mantri Awas Yojana is a scheme aimed at providing housing for all at affordable rates along with electricity and water supply. It offers financial support to people with low income and for those belonging to EWS. But apart from all these benefits, first-time buyers can save more with PM Awas Yojana as follows:
Subsidized Interest Rates
When beneficiaries take a loan with a total amount less than Rs.6 Lakh, the government offers a subsidy of 6.5 percent on it. Moreover, the government provides a subsidy of 4 percent and 3 percent on the loan amount up to Rs.9 Lakh and Rs.12 Lakh for those whose household income comes within the bracket of Rs.12 Lakh and Rs.18 Lakh respectively.
Beneficiaries are given ample repayment time which was extended from 15 to 20 years. This enables them to pay a low an affordable EMI.
No Processing Fees
Financial institutions do not charge processing fees for the applications which are filed under CLSS.
Since the main aim of Pradhan Mantri Yojana is to provide housing at affordable rates, beneficiaries are exempt from tax to a certain extent. Tax exemptions can be as high as Rs.1.5 Lakh on the principal amount and Rs.2 Lakh on the interest amount.
Preference for Minorities
This scheme gives preference to women, widows, transgender people, differently abled, single-working women, people belonging to scheduled castes, scheduled tribes, and backward classes.
Beneficiaries can now avail for all these additional benefits apart from the standard advantages of the scheme and get housing at affordable rates.
Reference Read: First Time Home Buyers can save more with Pradhan Mantri Awas Yojana
Aman Khanna is an experienced financial advisor who is well known for his ability to foretell the market trends as well as for his financial astuteness. He has an MBA in finance from Toronto University as well as years of experience delivering seminars on sound financial practices and debt management.