Gone are the days when even the thought of buying a house was scary, especially for people belonging to the middle class. With the rise in pricing for almost everything, property prices too have seen various fluctuations in the past. High or low, buying a property is a dream everyone has.

This dream can now come true. There is a unique scheme centered at catering to the needs of the middle class or in simple words, the urban poor. This scheme is called the Pradhan Mantri Awas Yojana “Housing for All”.  The aim is to provide housing for all. Therefore, families who already own a house cannot avail of the benefit of the scheme.

Chennai is the capital city of Tamil Nadu, and it is the largest hub for social, economic and cultural exchange among people. This city witnesses a massive population with more people coming from other cities as well due to the promise of ample job and educational opportunities.

With the increase in population, more and more people need a decent play to stay, especially the working middle class. There are various home loan schemes available now for everyone and anyone. 

However, before applying for a home loan, you need to assess your eligibility for the amount you can take. The calculation of this ability comprises looking at the amount of money you earn in a month because directly proportional to what you make is how soon you can repay to the bank. There are various methods by which you can apply for a home loan.

Applying for a Joint Home Loan

By doing this, you can avail of a considerable increase in the amount of loan you want because you have applied jointly with your partner, spouse, or parents. The total amount is calculated, looking at the joint salary of the members together, and then the monthly EMI is fixed.

joint home loan gives you a tax benefit since more than one person is the owner; they can both ask for a tax deduction. With a joint home loan, you have a free hand in deciding who pays what amount. It is not necessary that both the owners give the same amount.

However, in the case of most middle class people, even a joint loan seems out of bounds. Here is where the Pradhan Mantri Awaas Yojana plays an important role. Since the middle class is the target of this scheme, it first divides the middle-class earners into two categories:

Middle Income Group 1 - this group comprises families earning up to INR  6 lakhs to INR 12 lakhs annually.

Middle Income Group 2 – this group comprises families earning up to INR 12 Lakhs to INR 18 lakhs annually.

Eligibility for the Pradhan Mantri Awaas Yojana Scheme

To be eligible, you have to make sure that your family has not availed any benefit from any other scheme centered on housing by the Government of India and the essential being that you should not have any cemented, or pakka house of your own.

You can even apply for this scheme if you are married and earn your own money, but stay with your parents and do not own a house of your own. Also, if your parents own a home of their own but you are a married couple living on rent, you can apply for this scheme and take all the benefits. You will be considered eligible to get a home loan for a single house, which you may buy either in your name or by taking a loan jointly. 

It is not easy for people to apply for home loans. Even if they do, considering the process takes time, Chennai offers a vast range of localities where houses are available on rent. One of them being Triplicane. Thiruvallikeni or Triplicane is known for being the oldest neighbourhood of Chennai. It is full of tourist attractions and garners a huge tourist interest.

The houses for rent in Triplicane come at a reasonable price. Inhabited by the old and the new, there is an ample number of homes put on lease by the owners. Since people from all backgrounds prefer this neighbourhood over many others, the price of rent ranges and is feasible for middle class families. Single room flats range from below INR 10,000 to INR 18,000. The price often increases depending on the number of rooms available and the furnishing of the house.

Staying in a decent locality like Triplicane with a rent of below Rupees 10,000 is possible for a middle class family. These days in middle class families usually, more than two people are earning. Thus, till you avail your Pradhan Mantri Awas Yojana, you can easily stay on rent and do not have to face the problem of being homeless. 

Subsidy Options

The Pradhan Mantri Awas Yojana provides a subsidy to both the categories of Middle Income Groups i.e. Middle Income Group 1 and Middle Income Group 2. The former gets a total of 4% interest subsidy on the amount of loan which should not be more than INR 9 lakhs. 

Whereas, the latter receives a total of 3% subsidy on the loan amount, which should not be more than INR 12 lakhs. The subsidy helps in making your dream of owning a house a reality.  Though the house may be little out of your range but after the initial down payment, the amount left will be subsidized to make it reachable for you.

Conclusion

The PMAY scheme is just a step towards improving the social conditions of those who still do not own a house of their own. With this and many other possibilities now being offered, the dream of owning a home for every middle-class person does not seem far away. 

However, till the time you do not have one of your own, and want to live or work in Chennai, there is always an affordable home available on rent at Triplicane!

 

Published by Mohsin Ahsan