Is Budget 2019 Beneficial For Pradhan Mantri Awas Yojana In India?

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With the growing population in India and the need for housing constantly on the rise, the PMAY (Pradhan Mantri Awas Yojana) has become a saviour. Launched by the government of India to provide housing scheme for all, this affordable housing scheme promises to help homebuyers purchase their own home. Specially designed to cater to those that don’t own a home, Pradhan Mantri Awas Yojana (PMAY) offers a CLSS (credit-linked subsidy scheme) to ensure availing a home loan is easier on the pocket, encouraging the purchase of a house.

In order to make the most of this PMAY CLSS scheme, it is important to understand the contributions to this scheme post the release of the Interim Budget 2019 of India. Take a look at the latest updates on this housing scheme lauched by Indian Prime Minister Mr. Narendra Modi.

What the Interim Budget 2019 contributed to PMAY?

The Interim Budget 2019 by Indian Govt. introduced a tax rebate for people with income ranging up to Rs.5 lakh annually. This helps a majority of the population save on taxes, creating more disposable income. This is assumed to spike the number of potential home buyers as many may want to allocate funds towards a home purchase, courtesy of the reduced tax expenses.

PMAY scheme, on the other hand, has also been allotted a sum of Rs.25,853 crore in the Interim Budget. While this amount is 2% lower than the amount it was allotted last year, the urban development ministry of Indian Govt. quotes it to be enough for the government to execute its plans thoroughly. The Government also spoke of a means to support the PMAY CLSS (credit-linked subsidy scheme) program via a dedicated housing fund that will be advantageous for financing companies and help them increase the awareness of affordable housing.

Further, the increase of the TDS (tax deduction system) threshold on annual rent being hiked to Rs.2,40,000 has led experts to believe that this can push the sales of affordable homes. Lastly, with taxing threshold for unsold inventory being pushed to two years, developers are less likely to wish for hurried sales and may offer decent discounts to buyers.

How you can Make Home Financing Even More Affordable

Apart from these benefits, you can also apply for home loan with top lenders listed under the Pradhan Mantri Awas Yojana Pmay Clss CLSS scheme to finance your home purchase affordably.

Further, with the Flexi Hybrid loan feature, you can borrow as you need and pay interest only on the used amount. You can also opt for interest-only EMIs for the first few years and enjoy online account management, a top-up loan, and more. Wishing you could switch lenders? Now you can! Transfer your home loan balance to another finance firm to enjoy all these benefits and much more. Also check your Pradhan Mantri Awas Yojana eligibility criteria before applying this beneficial scheme.

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Aditi Ahuja is a noted financial consultant and adviser. She loves to write on financial affairs, issues and solutions covering a range of topics like loans & insurance. She has more than 7 year exp. in Business, Investment & Finance writing.