Interest-Free Loan Approved For PMAY-U

The Jammu & Kashmir Administrative Council, under the Chairmanship of Lieutenant Governor Manoj Sinha, approved the proposal of the Housing and Urban Development department and decided to provide interest-free loans up to Rs 2 lakh to the economically weaker section people in urban areas. The government has fixed the time period of the Interest-Free Loan Approved For PMAY-Uat 10 years. It will include a moratorium of 6 months and is repayable through a monthly installment of Rs. 2500.

Why An Interest-Free Loan Is Required 

The beneficiaries under the Beneficiary-Led Individual House Construction (BLC) component, the Pradhan Mantri Awas Yojana – Urban scheme, currently benefits nearly 41,992 beneficiaries. However, the beneficiaries belonging to the Jammu & Kashmir state have been facing several difficulties to mobilize their contribution as they belong to the economically weaker section of the society. Additionally, they contribute a larger share compared with the shares of other UTs and states of India. As a result of this, the construction of dwelling units of the Beneficiary-Led Individual House Construction (BLC) component of the scheme could not achieve its desire target. 

The beneficiaries of the BLC component in the Jammu & Kashmir state demanded to enhance the assistance given to them to complete the pending construction of houses in the given time frame. Due to the beneficiaries’ difficulties in arranging funds and other resources, the state government decided to support the beneficiaries. The state government has now given a heads up to provide interest-free loans to all the beneficiaries. 

Significance of The Move

The approval given by the state government of Jammu & Kashmir for the interest-free loans will now give an additional benefit to the beneficiaries. In a total sum amount, the government’s benefit will give financial assistance of about Rs, 1.66 lakh, which has already been provided to the beneficiaries of the Pradhan Mantri Awas Yojana Urban. With this scheme’s help, now the beneficiaries can avail Rs 3.66 lakh to build their housing units. The decision taken by the state government of Jammu & Kashmir is a part of the Central government’s aim of providing affordable housing to the economically weaker section of the society. 

What is PMAY-U?

PMAY-U stands for Pradhan Mantri Awas Yojana – Urban, which falls under Central Government’s mission – “Housing for All by 2022“. The PMAY-U scheme provides affordable home loans to the urban poor by providing subsidies on the home loan’s interest rate during the repayment. The scheme comes loaded with features and benefits to help the urban poor and economically weaker section people of the society. 

People from various income slabs can avail the benefits of Pradhan Mantri Awas Yojana – Urban. The scheme includes 4 major components, and the individuals who meet the PMAY eligibility can avail of the below-mentioned benefits:

  1. Credit Linked Subsidy Scheme (CLSS)
  2. Rehabilitation of slum dwellers, in-situ basis
  3. Subsidized house construction
  4. Affordable housing in Partnership (AHP)

Also Read- Know About The Popular Central Government Housing Schemes

Under the Pradhan Mantri Awas Yojana – Urban, the benefits can be availed if a person wishes to acquire a new house from a developer or the builder and also for buying a house on resale. Apart from this, you can also apply for a loan under this scheme to construct a house. The PMAY-U and its benefits are also applicable for upgrading a kutcha house to a pucca house under the Credit Linked Subsidy Scheme. PMAY-Urban provides central assistance to all the states and UTS in India to meet the PMAY Housing for All scheme’s objectives. In order to extend their support in empowering women of the society, the government has made it a mandatory provision that the female head should be the owner or at least the co-owner of the property bought or constructed under the PMAY-U scheme.