Indira Gandhi Awas Yojana (IGAY) is a flagship scheme of the government of India to provide affordable housing for the economically weaker sections (EWS) and low-income groups (LIG) in rural and remote areas of the country. The scheme was launched in 1985 and is now known as Pradhan Mantri Awas Yojana – Gramin (PMAY-G). Under this scheme, the beneficiaries are provided financial assistance to build a pucca house with basic amenities like water supply, sanitation, electricity, and cooking fuel.
If you are planning to build a house under IGAY, you can avail the benefits of various government schemes to reduce the burden of home loan EMI and get the best housing loan interest rate. In this article, we will guide you on how to avail benefits under IGAY for your home.
Eligibility Criteria for IGAY
To be eligible for IGAY, you should meet the following criteria:
1. You must belong to the EWS or LIG category as per the government’s guidelines.
2. You should have a valid proof of income such as a ration card, voter ID, Aadhaar card, income certificate, etc.
3. Your house should not have been constructed under any government scheme earlier.
4. The land ownership must be in the name of the beneficiary or any member of the family.
Benefits of IGAY
Under IGAY, the government provides a subsidy on housing loan interest rate to eligible beneficiaries. The subsidy amount is based on the category of the beneficiary and the loan amount sanctioned. The subsidy rate varies from 3% to 6.5% depending on the loan amount and repayment schedule. This subsidy is available for a loan amount of up to Rs. 6 lakhs and the subsidy is valid for a maximum of 15 years.
Apart from the subsidy on the housing loan interest rate, there are other benefits that you can avail of under IGAY. These include:
1. Financial Assistance: The scheme provides financial assistance of Rs. 1,20,000/- to construct a new house in plain areas and Rs. 1,30,000/- in hilly and difficult terrain areas.
2. Basic Amenities: The scheme provides necessary amenities like water supply, sanitation, electricity, and cooking fuel, making it easier for the beneficiary to maintain the house.
3. Employment Generation: The scheme creates employment opportunities for skilled and unskilled laborers in rural areas.
How to Avail Benefits under IGAY for Your Home
To avail benefits under IGAY, you can follow the below steps:
Step 1: Check Your Eligibility
Before applying for IGAY, it is essential to check your eligibility criteria. You can check the eligibility criteria on the official website of PMAY-Gramin.
Step 2: Approach a Bank or Financial Institution for a Home Loan
After checking your eligibility criteria, you can approach a bank or financial institution for a home loan for the construction of your house. Financial institutions like HDFC Ltd, SBI, ICICI Bank, etc., offer home loans under IGAY.
Step 3: Apply for IGAY Subsidy
Once you get a home loan, you can approach the bank or financial institution to apply for the IGAY subsidy. The bank will submit your application to the National Housing Bank (NHB) or HUDCO on your behalf.
Step 4: Get Approval for the Subsidy
After submitting the application, the NHB or HUDCO will verify the documents and sanction the subsidy amount. The subsidy amount will be credited to your loan account, and the EMI will be re-calculated based on the subsidy amount.
Step 5: Construction of the House
After getting the sanction for the subsidy, you can start the construction of your house. The scheme provides financial assistance for the construction of a pucca house with basic amenities. The beneficiary has to contribute the balance amount for the construction of the house.
Conclusion
Indira Gandhi Awas Yojana is a government scheme that provides affordable housing for the economically weaker sections and low-income groups in rural and remote areas of the country. The scheme provides financial assistance and other benefits to the beneficiaries, making it easier for them to build a pucca house with basic amenities. If you are willing to construct a new house under IGAY, you can approach a bank or financial institution for a home loan and apply for the subsidy. You can also check the official website of PMAY-Gramin for more information.
