Home is where the heart is, and it is often everyone’s dream to own a home they can call their own. However, for many people, owning a home remains an elusive dream due to a lack of funds. Fortunately, with the introduction of schemes like the Indira Gandhi Awas Yojana, the Government of India has made homeownership a tangible reality for low-income families. This scheme is targeted at providing affordable housing for the economically weaker sections (EWS), scheduled castes, and scheduled tribes.
About the Indira Gandhi Awas Yojana (IGAY)
The home loan Indira Gandhi Awas Yojana (IGAY) was launched in 1985 as a centrally sponsored scheme with the goal of providing rural housing for those who could not afford it. Since then, the scheme has gone through several revisions and has undergone changes to cater to the changing times. Today, it is a successful scheme that has helped many low-income families become proud homeowners.
Benefits of Indira Gandhi Awas Yojana (IGAY)
One of the significant benefits of the IGAY scheme is the low-interest home loans that it provides. The loans are offered at highly subsidized rates to EWS individuals and families, making it a highly affordable option. Apart from the low-interest loan, the scheme also offers a one-time grant of Rs. 70,000/- per unit for the construction or up-gradation of a house.
Under the IGAY scheme, eligible individuals and families are provided with the funds necessary to build a house of up to 25 sq. m. for EWS and 30 sq. m. for LIG (low-income group) families. In addition, the scheme assists with the up-gradation of existing houses that do not meet the necessary living standards. The house should have a toilet, kitchen, and sufficient ventilation.
Eligibility and Application Process
To apply for the loan, the applicant needs to meet certain eligibility criteria. The applicants must belong to the EWS, SC, or ST category and should not have a pucca house. They must also meet the income criteria set by the government. SC/ST category applicants are given priority. Apart from this, the applicant must provide all the necessary documents to prove their eligibility. Some of the documents that need to be submitted include Aadhaar card, income certificate, caste certificate, and property ownership certificate.
The government recognizes the difficulty of low-income individuals in navigating the complex loan application process. As such, the IGAY scheme aims to simplify the process. Assistance is offered in the form of an online home loan eligibility calculator, which helps applicants determine if they meet the eligibility criteria for availing the scheme’s benefits. The calculator computes their housing loan interest, the eligible loan amount, and the monthly EMI to be paid for the loan tenure. This online calculator has made the process much easier for low-income households interested in homeownership.
Once the eligibility criteria are met, the applicant can submit their application to their local government officials for further processing. The application process involves a site visit by the district or block-level officer to verify the information provided in the application form. Once the verification is complete, the applicant’s eligibility is determined, and the loan disbursal process is initiated. The entire process from applying for the loan to its disbursement would usually take three to four months to complete.
Loan Disbursal and Construction
The funds are disbursed in stages and are linked to the progress of the construction. The government disburses 60% of the loan amount initially, and the remaining amount is released in phases as construction progresses. The beneficiary can then complete the house’s construction and start building their life in their new home.
The IGAY scheme has helped many low-income families achieve their dream of homeownership. The scheme’s affordability and ease of use make it an attractive option for those who wish to own a home but are constrained by their income. Since its inception, this scheme has provided affordable housing solutions to over 22 million families across India.
Conclusion
In conclusion, the Indira Gandhi Awas Yojana is a welcome initiative by the Government of India aimed at making affordable housing a tangible reality for low-income families. The IGAY scheme provides low-interest home loans and one-time grants to EWS individuals and families to build a house or upgrade their existing ones. The simplicity of the eligibility criteria and the online home loan eligibility calculator have made this scheme accessible to many people. The government’s efforts in making homeownership achievable for the less privileged is commendable, and the scheme’s success has been evidenced by the millions of beneficiaries who have benefitted from the IGAY scheme.
