who is eligible for the pmay?
PMAY scheme 2015: The Pradhan Mantri Awas Yojana was launched in June 2015 with the aim of building 2 crore houses by 2022. Phase 1 began in April 2015 and will end in March 2017. The number of target cities are 100. Phase 2 begins in April 2017 and will end in May 2019. It targets 200 cities. The third phase begins in 2019 and ends in 2022
The main beneficiaries: The main beneficiaries of the 2015 PMAY scheme were women, people belonging to scheduled castes, scheduled tribes and economically weaker section. Applicants had to submit an affidavit as proof of income. The income could not exceed ` 3 lakh per annum for EWS applicants and ` 6 lakh per annum for LIG applicants. The interest subsidy was 6.5%
Changes likely: The scope of the previous scheme has now been expanded to include all first time homebuyers who intend availing loans. Buyers can avail of 4% rebate in interest for a home loan of up to ` 9 lakh while 3% rebate can be availed on a ` 12 lakh loan. The eligibility criteria has not been defined. Under the scheme, applicants can get interest subsidy only if they own no house anywhere in the country
Who will get relief? Under the PMAY scheme, only those who do not own a house will get a subsidy. Middle class homebuyers wanting to purchase a house worth ` 18 lakh might be allowed to avail the interest rebate for a ` 12 lakh loan and pay the market rate of interest for the remaining amount
Success rate of the scheme: Some real estate experts say that once the scheme kicks off, it will boost activity in the residential real estate sphere. Others are of the opinion that it is likely to benefit Tier 2 cities more than Tier 1 cities where the cost of land is very high