Affordable Housing: Focus Area of Government
Affordable housing refers to housing units that are affordable by that section of society whose income is below the median household income.
To sell inexpensive housing in India, the government is taking corrective projects these days. The assets costs have increased significantly over the last few years. As a result buying a house seems to be unaffordable by a large sector of society. To fulfill this gap and to provide ‘Housing for All by 2022?, the authorities are focusing in this key area.
On December 31, 2016, the prime Minister announced to offer rebates on home loans under the Pradhan Mantri Awaas Yojana (PMAY). This move has come at a time while the actual property in India is going through a slowdown. The government has even made sure that it might additionally facilitate developers tune up the actual Indian property sale.
Under PMAY, the government is offering 4 percent subsidy at the interest fee for domestic loans of as much as Rs 9 lakh, and a three percent subsidy on domestic loans of up to Rs 12 lakh. With this step, it is clear that the key cause of government is to promote low-priced housing in India.
Pradhan Mantri Awaas Yojana
Affordable housing becomes a key issue especially in developing nations like India where a majority of the population isn’t able to buy houses at the market price. Therefore the Indian Government launched Pradhan Mantri Awaas Yojana in June 2015 with an aim to provide affordable housing to lower or middle income households.
Some attractive features of PMAY are:
- Subsidy: Generally the Interest Rate for House Loan that the banks provide in as high as 10% but under PMAY Scheme a subsidy of 6.5% is being given to individual.
- Affordable Housing for All: Under PMAY, it is proposed to build 2 crore houses for Economically Weaker Sections and Low Income Groups in urban areas by the year 2022.
- Other Benefits: Women falling under low income groups can avail special benefits under this scheme. Special provisions have been made for widows, senior citizens, transgenders and differently abled persons. Senior citizens can also avail house on ground floor for their comfort.
Pradhan Mantri Awaas Yojana seems to be a positive step that will improve the lives of people specially those who fall under low income group. It will also help in improving the real estate sector of India.
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