How Can Women Benefit From The Pmay

 

What is the PMAY? 

Pradhan Mantri Awas Yojana (PMAY), the government’s flagship scheme is a Credit Linked Subsidy Scheme (CLSS). It is categorized as urban and rural and is offered on the basis of annual income levels. It offers subsidies on home loan interest rates to eligible borrowers. 

Under the ‘Housing for All’ scheme, introduced by the government those with annual income of less than Rs.18 Lakhs per annum can apply for the PMAY. The interest subsidy can be availed on housing loans for the acquisition and construction of a pucca house for the Economically Weaker Section (EWS) or Lower Income Group (LIG). For the Middle Income Group (MIG), the interest subsidy can be availed on housing loans for acquisition or construction of houses, including repurchase. The interest subsidy backing will be paid upfront on the outstanding principal. 

How does PMAY help women? 

With the help of this scheme, you can own a house at a lower budget. Additionally, women borrowers get special interest rates and benefits under PMAY. Several banks offer added discounts and benefits for women borrowers. A simple and easy process has been curated by the Housing and Urban Development Ministry to apply for a house under the PMAY scheme. That form just needs to be filled with the required details by the borrowers. Following are the advantages and the process to apply for a house under this scheme.

Advantages for Women

• Housing loan for women is available starting at 8.25% per annum
• The EMI for a housing loan of Rs.1 Lakhs will be Rs.853
• No pre-payment charges under this scheme
• Interest is calculated on daily reducing balance
• This scheme can be availed for a period of up to 20 years
• Loan up to Rs. 70 Lakhs can be availed under this scheme

How to apply for a home loan under Pradhan Mantri Awas Yojana?

• Log in to the official Pradhan Mantri Awas Yojana website.
• Under ‘citizen assessment’ choose the option ‘benefit under the other 3 components.’
• Enter your Aadhaar number, which will be verified, then you will proceed to the next page.
• For accurate verification, the government uses an Aadhaar number of individuals who are applying for the scheme.
• On the second page, the borrowers need to enter their personal details. The borrower also needs to provide information about the state they are residing in, current residential address, the head of the family, and other similar details.
• After filling in the details the applicant can submit the application.

Who can apply for this scheme?

Pradhan Mantri Awas Yojana can be applied under two categories.

The first category is divided into three components: The Economically Weaker Sections (EWS), Middle Income Groups (MIGs) and Lower Income Groups (LIGs). The annual income cap stands for EWS is Rs.3 lakh. For LIG applicants, the maximum annual income is set between Rs.3 to 6 lakh, whereas the annual income cap for MIG is set between Rs.6 to 18 lakh.

Slum-dwellers who live in poorly built residences, and in unhygienic areas with the lack of proper infrastructure, drinking water, and sanitation facilities, can also apply for the Housing for All by 2022 Scheme under the Slum Dwellers tab. This is the second category under the PMAY. 

Under the Pradhan Mantri Awas Yojana (PMAY), the ownership of a house should mandatorily be in the name of the female member of the family. Many banks also offer special rates of interest to encourage women buyers. Besides, several state governments also offer an additional stamp duty waiver if the house is registered in a woman’s name.

Interest Subsidy Amount for Different Categories of Borrowers

 

Concession in Interest Rates for Women

Most banks offer a concessional rate of interest for women homebuyers to invest in property. There are quite a few banks that provide special housing loan rates to women borrowers. The rates vary according to the profession and amount of finance applied by these borrowers. On average, the women borrowers can get an interest rate concession of 0.05 % over their male counterparts.

Some prominent banks offer the following interest rates (the rates are only indicative) for women borrowers.

• State Bank of India (SBI) offers home loans of up to Rs.30 lakh to salaried and non-salaried women borrowers at 8.35 % and 8.45 %, respectively. On the other hand, loans from Rs.30-75 lakh are priced at 8.50 % to 8.55 % and 8.65 % to 8.70 % for salaried and non-salaried borrowers, respectively. Whereas, salaried and non-salaried women borrowers can get loans above Rs.75 lakhs at 8.60 % to 8.65 % and 8.70 % to 8.75 % per annum, respectively.
• HDFC Limited also provides special home loan rates to women borrowers. Loans of up to Rs.75 lakhs and above Rs.75 lakh can be availed by women borrowers at 8.35 % to 8.85 % and 8.40 % to 8.90% per annum, respectively. 
• ICICI Bank also offers special rates to women borrowers. Salaried and self-employed women borrowers can get home loans at 8.45% and 8.60%, respectively, for loans up to Rs. 30 Lakhs. Women borrowers seeking a loan of Rs.30 to Rs.75 lakh, Rs.75 lakh to Rs. 5 crores and above Rs. 5 crores would need to service at 8.75 %, 8.80 % and 8.90 % per annum, respectively.

Partial waiver on Stamp Duty

Several state governments also offer partial waiver on stamp duty, for buyeRs.registering properties in a woman’s name – either as a sole owner or as a joint owner. This waiver varies between 1 to 2% on stamp duty, if the property is in a woman’s name.

Stamp duty charges for women versus men 

 

Tax Benefits 

There are some tax benefits of buying a home in the name of a woman that include a deduction of interest up to Rs. 2 Lakhs every financial year, if the house is self-occupied. If a husband and wife are the joint owners of the property and if the wife has a separate source of income, then they can both claim tax deductions individually. The tax benefit will depend on the ownership share of each co-owner.

Overview of Benefits for Women under the PMAY scheme

Under the Pradhan Mantri Awas Yojana (PMAY) where a woman holds the ownership of the house, the maximum subsidy that can be availed is up to Rs. 2.67 Lakhs. Further, women have been kept under the preferred class of groups who would get preferential allotment of houses over male applicants.

Given the impetus the government intends to give to women empowerment, reducing the interest rates on housing loans for women could be a good idea. Similarly, the government can consider increasing the tax deduction on home loan interest for women to Rs. 4 Lakhs (from current limit of Rs. 2 Lakhs) resulting in tax savings and consequent increase in disposable income in the hands of women.

Thus, the PMAY encourages home ownership among women across all spectrums of the society. Understand the benefits of the scheme and apply for subsidies, if you’re eligible.