The Pradhan Mantri Awas Yojana aimed to ensure housing for all by year 2022 is gaining momentum in the backward Srikakulam and Vizianagaram districts. The government has directed the banks to give wide publicity to the PMAY subsidy benefit to home buyers.
Earlier, the scheme was confined to economically backward sections but it now benefits many people whose yearly income is below ₹12 lakh per year.
The government reimburses up to ₹2.67 lakh to the banks which in turn adjust the amount in the bank loans. The one-time benefit reduces the principal amount, enabling home buyers to get the property at 6% interest rate per annum. Currently, the home loan interest rate ranges between 8.35 and 9%. Buoyed with the scheme, many builders are constructing new projects in Vizianagaram, Bobbili, Kothavalasa, Palakonda, Rajam, Tekkali, Srikakulam and other towns.
Many construction companies say the scheme is a blessing in disguise for them too as the sale of properties has come down drastically after the demonetisation. Skyrocketing of the prices of cement, steel and other material forced them to revise the rates. Due to the increase in the cost, many people are hesitating to buy properties. However, the sale reportedly has gone up with the effective utilisation of the PMAY scheme in semi-urban areas where several new projects have been taken up recently.
Quick processing
Confederation of Real Estate Developers’ Association of India (CREDAI), Vizianagaram representative and Vasanth Vihar chairman Jai Prakash Babu Valluri said that the PMAY scheme was a boon for middle class sections. “CREDAI has been promoting the scheme in semi-urban areas too for the benefit of lower income groups. We also sought the cooperation of all the banks for quick processing of PMAY applications so that the amount is credited within a couple of months after the sanction of loan,” he says, talking to The Hindu .
Gain for banks
CREDAI, Srikakulam chairman Gurugubilli Raju feels that a few banks have not yet understood the benefits of the scheme. “Apart from us, the banks can also get huge business in the home loan sector if they are able to adopt a pro-active role in promotion of the scheme. The people with limited income source can avail themselves of the benefit by buying small and medium range flats,” he explains.
