How PMAY Works? - Home Loan Stories

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Planning to buy your own home? Looking for suitable home loan as per your requirements? Presenting Pradhan Mantri Awas Yojana (PMAY). If you are looking to own a home of your own, the PMAY scheme by the government offers Indian citizens a pre-requisite subsidy amount to the qualifying individuals. Government’s initiative to support the cause of housing through its ‘Housing for All by 2022’ mission, is aimed at providing a roof for people of India. With the support of Government, even the real estate developers have started promoting their offerings in the affordable housing segment for those who are interested in government subsidy.

Today, India’s metropolitan cities comprise of lakhs of unsold residences costing upwards of Rs. 50 lakh and the country is estimated to have a shortage of nearly 20 million housing units needed by the rural and urban poor. The Pradhan Mantri Awas Yojana aims to provide a roof over the heads of everyone. With interest rate subsidy, the scheme is expected to cover a higher proportion of the indian population.

The benefits of this housing for all scheme can be availed if one wishes to acquire a new house from the developer or the builder and even for buying a house from the secondary market through repurchase.

The PMAY eligibility criteria assists the potential home-buyer applicants to meet their aspirations of their own dream home. The PMAY is for:

EWS, LIG & MIG
The three sections, which include Low-Income Groups (LIG), Middle-Income Groups (MIG) and Economically Weaker Sections (EWS), are considered as beneficiaries for the ‘Housing for All Scheme’. The LIGs have an annual income cap of Rs. 3 to 6 lakh while MIGs have a cap of Rs. 6 to 18 lakh and EWS have an annual income cap of Rs. 3 lakh.
Slum Dwellers:
PMAY aims to transform slum areas by building homes for slum dwellers in collaboration with private developers.The PMAY scheme is quite beneficial for those who are eligible in this criteria. Furthermore, if someone already who owns a home wants to avail PMAY benefit, there's still a possibility. The government has clarified that the Mission (Housing for All by 2022) also provides for enhancements/incremental housing to the existing 'pucca ’ house under the CLSS (Credit Linked Subsidy Scheme) component.At Kotak Mahindra Bank, we provide housing loans under PMAY and thus accelerating your aspirations of your dream home into reality.

Disclaimer: Terms & Conditions Apply.
Credit at sole discretion of Kotak Mahindra Bank Ltd and subject to guidelines issued by RBI from time to time. Bank may engage the services of marketing agents for the purpose of sourcing loan assets.

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Disclaimer: This Article is for information purpose only. The views expressed in this Article do not necessarily constitute the views of Kotak Mahindra Bank Ltd. (“Bank”) or its employees. Bank make no warranty of any kind with respect to the completeness or accuracy of the material and articles contained in this Newsletter. The information contained in this Article is sourced from empaneled external experts for the benefit of the customers and it does not constitute legal advice from Kotak. Kotak, its directors, employees and the contributors shall not be responsible or liable for any damage or loss resulting from or arising due to reliance on or use of any information contained herein.