Pradhan Mantri Awas Yojana – Benefits & Impact
Launched in 2015, the Pradhan Mantri Awas Yojana (PMAY) aims to provide ‘housing for all’ by the year 2020 (now changed to 2022). Here are the steps taken by the government to make housing more affordable and attainable for all sections of society:
Under the scheme, the government plans on constructing 2 crore affordable homes with proper sanitation, water and electric facilities. Though the scheme initially covered lower-income groups (annual income under 6 lakhs), it has now been extended to mid-income groups as well (annual income under 12 lakhs).
Benefits for Women & Minority Sections
All homes will be in the name of a woman or jointly with a male. There are also special provisions for widows, disabled people, transgenders and other minorities. For example, senior citizens will be given preference for ground floor accommodation.
Subsidy for All
This benefit extends to all categories – economically weaker sections (EWS), lower-income groups and mid-income groups in the form of a credit-linked subsidy with varying interests and limits. To avail of this benefit, one cannot already be a homeowner. Moreover, direct financial assistance of Rs.1.5 lakh will be given to EWS.
Impact of PMAY
All the developers have been instructed to use only eco-friendly materials and methods in the building of these projects. So there will be a check on pollution and damage to the surrounding areas.
Raise the Standard of Living
Slum-dwellers will now get proper homes with all the necessary facilities. This will improve their health and hygiene.
Ease of Application
The PMAY now has an app that lets beneficiaries apply for interest rate subsidies and also upload pictures/videos/testimonies. Moreover, there’s no processing fee in applying for the loan if it’s below 6 lakhs.
Not only will the rise in demand for homes have a great impact on the real estate sector, but all the industries related to it. Businesses will get a boost and there will be greater employment opportunities.
This scheme will address the basic needs of those living in rural areas or falling below the poverty line and give them a better quality of life. Moreover, by including minorities and sections of society that are usually ignored and/or avoided, it will have a positive impact on the country as a whole.