The government comes-up with a host of schemes from time to time. However, this government's initiative to see each individual having his own house is good. The Pradhan Mantri Awas Yojana is a good scheme if it is implemented well. Here are some of the salient features. In fact, you should apply for the scheme, if you do not own a home.
Under the Pradhan Mantri Awas Yojana, you should have an annual income of less than Rs 3 lakhs, under the economically weaker section and Rs 6 lakhs annually under lower income group. This is not bad and millions full fall under this category.
Not owning a pucca home
The second and most important criteria is that you should not own a pucca home. Again, there would be millions in the country who would fall in this category.
Interest rate benefits
For the economically weaker sections of society, the interest rate subsidy on housing loan would be as high as 6.5 per cent. So, if home loan rates are 9 per cent, you would get a loan at an interest rate of just 2.5 per cent to build your own home.
Assistance to build your own home
If you fall in the economically weaker section (annual family income of less than Rs 3 lakhs), the central government assistance would be Rs 1.5 lakhs to build your own home under the Pradhan Mantri Awas Yojana.
Also for slum dwellers there is a slum rehabilitation grant of Rs 1 lakh and private government partnership on private or government land. Slum dwellers are entitled to all the basic amenities and a decent area.
The minimum size under the programme is 30 square metres.
Interest rate benefits for lower income group
There is also an interest rate benefit on loans for the lower income group whose salary falls between Rs 3 lakhs and Rs 6 lakhs. This is for houses up to 60 sq metre.
For the economically weaker sections we have mentioned the rates earlier.
There are many points, facilities, benefits and drawbacks.
As is with all government schemes there would be worries on implementation and bureaucratic hurdles. How swift and how transparent the mechanism will be, is difficult to say.