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Everything You Need to Know About Pradhan Mantri Awas Yojana

Most people may have heard of Pradhan Mantri Awas Yojana, but may not be aware of what exactly this plan is. This article summarises everything that you want to and need to know about Pradhan Mantri Awas Yojana (PMAY).

What is Pradhan Mantri Awas Yojana?

Launched by the Government of India, PMAY aims at making housing affordable for all Indians. There are two types of schemes:

Pradhan Mantri Awas Yojana Urban (PMAY-U)
Pradhan Mantri Awas Yojana Grameen (PMAY-G)

As the names suggest, the first plan is for those living in urban areas while the second plan is to provide monetary help for those living in rural areas.

Both schemes provide financial assistance and credit subsidies to those looking to build or buy their own home.

One of the main features of PMAY is the credit linked subsidy scheme. This credit subsidy is provided on the interest charged on home loans.

For both middle-income groups and people from economically weaker sections of society, this interest subsidy is provided on home loans taken either for purchase or for construction of a home.

Features of PMAY

A subsidy of 6.5% on the interest rate for the home loan for a period of 20 years.
It is mandatory to use eco-friendly material for construction.
Unless there is no female family member, the scheme makes it compulsory to register the property under the names of both the male and female members of your family.
The scheme is elderly friendly and differently-abled friendly. This is why it is mandatory for homes that are being built to provide ground floor accommodation for the differently abled as well as senior citizens.
GST for those applying for a loan via this scheme is 8%. This was brought down from 12%.

Who is eligible for PMAY?

To be eligible for PMAY, you need to meet the income criteria set by the government for this plan. The four groups that are eligible for the scheme are:

Persons belonging to economically weaker sections of society (EWS)
Those who belong to low-income groups (LIG)
Individuals who are part of the middle-income group (MIG I)
Those who belong to the second tier of the middle-income group (MIG II)

Criteria	EWS	LIG	MIG I	MIG II
Annual household income	Up to Rs.3 lakh	Rs.3,00,001 to Rs.6 lakh	Rs.6,00,001 to Rs.12 lakh	Rs.12,00,001 to Rs.18 lakh
Woman co-ownership/ ownership	Compulsory for new property, not existing property	Compulsory for new property, not existing property	Not compulsory	Not compulsory
Existing permanent home	Applicant or applicant’s family cannot have a permanent dwelling of their own

Note: if you or your family members have already benefitted from a Government of India housing scheme, you will not be eligible for PMAY. Moreover, not all cities in India are on the approved list of cities for PMAY. You can find the list of cities by logging in to the Ministry of Housing and Urban Affairs website.

What you need to keep in mind

Based on the income group you fall under, here is what you need to keep in mind:

EWS/LIG individuals

Apply for the scheme before 31 March 2022.
EWS individuals can choose a home with a carpet area of 30 metres square and the carpeted area for LIG individuals is 60 metres square.
The loan tenure is up to 20 years and you need to repay the loan before you turn 70 years.

MIG I individuals

A subsidy of 4% is applicable on the interest up to Rs.9 lakh only. Any extra amount taken up that will not receive a subsidy.
The total carpet area of the home cannot be more than 120 metres square.
The maximum tenure of the loan is 20 years. However, banks can extend this to 30 years on a case-to-case basis.
Your age at the end of repayment cannot be greater than 70 years.
Total debt payments including the EMI on your home loan cannot be more than 50% of your gross income.

MIG II individuals

The credit linked subsidy of 3% is limited to Rs.12 lakh. If your loan is greater than Rs.12 lakh, the subsidy will not be applicable on the additional amount.
The loan tenure is 20 years which can be extended to 30 years on a case to case basis. This will be provided only if you are less than 70 years old at the end of the repayment period.

How to apply for PMAY

If you meet the eligibility criteria and are looking to apply for this scheme, here are the steps you need to follow:

Apply via the Joint Facilitation Centre:

You will need your Aadhar number and two passport size photographs to complete your application.
Pay a fee of Rs.25.
You will then receive an application number. This number can be used to check the status of your application.

You can also apply online by visiting the official PMAY website:

Visit the PMAY website.
Click the ‘Citizen Assessment’ tab.
Then choose ‘Benefits under other 3 Components’.
Enter your Aadhar number (without spaces) and then select ‘Check’.
You will then receive the PMAY application form. Fill in the required details and submit the form.
Click on ‘Save’.
You will receive an application number. You can use this number to track the status of your application.

Documents needed to apply for PMAY

Completed PMAY
Identity proof. This can be your PAN card, Aadhar card, voter ID card, or driver’s license.
Address proof.
Proof of income and a self-attested income certificate.
Your latest income tax return or form 16.
Bank account statement for the last 6 months.
An affidavit claiming you or an immediate family member do not own a property in India.
A valuation certificate of the property you are looking to purchase.
Construction agreement with a builder or developer.
An approved construction plan as well as a certificate from an architect or engineer stating the cost of construction or repairs.
A certificate from the architect stating the property’s fitness.
NOC from a housing society or any other recognised body.
Letter or allotment and other property-related
An invoice/receipt for the advance payment you made for the purchase.

PMAY is a way to ensure that all Indians have access to affordable housing since housing is the right of all and not just the affluent. However, like with any loan, do your research and choose the right developer or home before you go ahead and apply for this scheme.

March 25, 2019

4 Ways Pawn Shops Determine Prices
Pawn shops come across plenty of used items and brokers need to consider many elements when it comes to determining the value of an item. A pawn broker’s appraisal takes into account the item’s condition and even the seller’s circumstances. While third-party and in-house experts are often consulted, most pawnbrokers turn to online resources and blue book databases when valuing an item.

There are Gold Buyers in Melbourne who use different methods for different types of stock.

General Merchandise

General pawn shops, those don’t really specialize in something, deal with plenty of different items, including:
- Sports Goods
- Consumer electronics
- Specialized tools
- Antiques
- DVDs and video games
- Musical instruments
- Jewelry and watches
Each kind of item has unique considerations and current market values. To arrive at a price, the broker will use his skills and experience to look at the condition of the item, including accessories and packaging. They may even consider ongoing economic trends when pricing merchandise.

Gold and Jewellery

We all know that pawn shops do a lot of business in precious metals and jewelry. So, they’re likely to have expertise and experience when it comes to valuing items. For instance, they have familiarity with clarity and cuts of diamonds, and carat weights. They’ll also consider the metal price of silver and gold, keeping up with day to day changes.

While pawn shops don’t offer set a fixed minimum value on items, they often use a percentage as a baseline when valuing gold.

Value Databases

Before the days of the Internet, pawn shop owners relied on blue books for baseline resale values of just about any type of item. Some big pawn shop chains even developed their own internal guidebooks to help with assessments. Today, pawn brokers can head online and consult related auction sites for ideas on current market values.

Specialties and Experts

While most pawn shop owners have familiarity with the value of many items, some shops specialize in certain merchandise. Gold and jewelry are the most common pawn shop specialization, but there are those shops that specialize in firearms, electronics and even sporting goods. Sometimes, a broker may call in an expert or this-party consultant if they need assistance determining the value of something.

What’s more, the hard numbers of resale potential and market rate considered, small pawn shop owners have a great deal of flexibility to consider a borrower and seller’s circumstances. A pawn broker may place a certain degree of value on repeat business from satisfied sellers and borrowers and even recognize themselves as part of a community.

What’s more, some pawn shop owners may even offer a higher value depending on an item’s personal meaning, although this is not the case for all pawn shop owners. Offering a higher price, though, for a family heirloom compared to an identical item a seller grabbed at a car boot sale.

Overall, pawn shop owners know their trade. They have experience when it comes to properly value different types of items to ensure the best price possible.
March 14, 2019
Home equity loans: Everything you need to know
There are many types of loans and credits marketed by banks, but one of the most specific for its special characteristics is the equity loans. Its popularity in recent years has been due to the lack of financing to individuals as a result of the economic crisis generated since 2008. This type of loan is based on a property free of charge or with reduced debt is provided as collateral to the operation in order to access the line of credit that, otherwise, you could not get.

The loans with mortgage guarantee is a type of loan in which a property is contributed like guarantee of the operation. Additionally, the financial institution will analyze your economic situation to assess if they grant you the loan. So it will be essential to show income, official or not, with which to face the monthly installments

Loans with mortgage guarantee: interest rate, term and financing
1. Financing time: The loans with mortgage guarantee grant a maximum amount of 30-40% of the real value of the property
1. Repayment period:In a term loan with mortgage guarantee you will usually have between 12 and 180 months to repay the loan depending on the amount required. However, in these credits the negotiation with the lender is very frequent and in this way you can extend the deadlines to adjust to your personal needs.
1. Interest rates: In terms of Interest rates you can be more demanding than a personal loan. Due to the lower requirements that your concession requires, the cost of these products is somewhat higher than in traditional credits.
Bonding loans with mortgage collateral

The loans with mortgage guarantee do not have any type of connections. You will not have to contract other products with your financial institution such as payroll, insurance or bank accounts.

Mortgage loans for various purposes

The mortgage loan can be used to finance a new business, cancel an outstanding debt, and make reforms in your home or premises or simply to obtain liquidity. All you have to do is indicate in the loan contract what you want to use it for.However, home equity loans cannot be used to purchase a home.

More flexible requirements in your concession

Regardless of the guarantee of your apartment or apartment, the conditions for accessing mortgage-backed loans are softer than in the other financing models. Of course, you must show some income, official or not, with which to pay the loan installments.

But what most characterizes the loans with mortgage guarantee, is that they are open to all user profiles: self-employed, pensioners, employees, temporary workers and others

Faster processing

Your concession will be faster because you will have to go through fewer administrative procedures than in other financing models. Without being included in the category of quick credits, you will be sure that in a few days you will have the amount requested in your checking account. The crediting companies often carry out a free study without compromise of your situation and they will give you an answer to your request in a maximum of 24 hours.

Why to apply for a mortgage loan?

The key to home equity loans or mortgage loan is that the requirements for their concession are more flexible than in the case of traditional personal loans. For example, it does not matter if the applicant is included in an ASNEF or RAI file, or that you have other loans contracted. In return, you will have to endorse the operation with a real estate property that would be put at risk if it were not possible to face the payments. It is a risk that you have to run to enter the financing market if you do not meet the requirements that banks impose for a personal loan. In short, your access is more open to your customer profile, but with greater risk in the operation for your assets.

In many cases it is the last resort you have when financial institutions deny you other types of loans. The profiles that usually request these types of loans are self-employed, pensioners, workers with non-regular income or who are or have been in the past.

Conclusion: Be careful when borrowing money against your home as part of an investment strategy. There is no such thing as a “guaranteed” or “risk free” investment. Avoid companies that ask for large commissions in advance, or make unrealistic promises, such as restoring your credit or canceling your debts, paying just a few cents for every dollar.You should carefully consider all your options before making a loan against your home, in order to make an investment. All investments can lose value and that could put your home at risk, if later you cannot pay the loan.
March 8, 2019
Why investing in London properties now is a great idea

Investment’ has turned to be happening one all over the world. Even though there is a jinx pertaining to Brexit and its aftermath, people are eager to invest in the housing market. Moreover, the political situation is expected to reach a steady pace in March 2019. Whatever form Brexit is going to take, most of its fascinations to the international community do not depend on the EU membership remotely.

Across the UK, a housing cycle is underway, said Richard Donnell, director of housing market analyst Hometrack. On one side, growth is powering ahead in cities such as Manchester and Liverpool. On the contrary, it is flagging or going into reverse in places like Aberdeen and parts of London. There are also other parts of the UK that are yet to witness the ripple effects of formerly stratospheric growth in London and the Southeast. Nearly 5 cities are 50 percent higher in terms of price when compared 10 years ago.

The number of housing transactions has been stagnant at the same level for four years — around 1.2m per year. But in London, where the market slowdown has been particularly witnessed in central or “prime” areas, the turnover is much down by 20 percent over four years. Most of the sellers are coming to terms with the fact that there are fewer buyers on the ground, and today’s house hunters are remarkably making higher demands of vendors.

The UK is known for possessing a talented workforce accompanied by highly flexible labor laws and also a purely accommodative attitude to the industries of dispute. All these when put together make this country the most preferable one to invest in the year 2019. There are also many hotspots considered to be highly viable for investment. The most predominant one being Birmingham, Liverpool, Manchester, New castle, Slough etc.

Birmingham, Liverpool, and Manchester:

Known to be the top-notch investment destination in the North East these places are often targeted by the property investors as they offer a guaranteed return. They also play a vital part in the economic growth of the country, by and large.

Newcastle:

This is also one of the most sought after place for investment. This area has been into renaissance owing to the amalgamation of the Northern Powerhouse initiative and extensive investment in digital infrastructure, and ultimately paving the way to lay hands on multifarious global opportunities. Hence, it has attracted renowned industries such as pharmaceutical, finance, and technology

Leicester:

Its geographical location contributes to a large extent for Leicester to be at the top of the UK’s economic growth table. Its accessibility to airport symbolizes an easy reach for any European destination within 4 hours without having to go via London Heathrow. It is also digitally sound and is working hard to diversify its economy.

Buying an off-plan home especially in the central London is a great way for investors and also owner-occupiers to make their home in a newly built residence with all the modern comforts set within a historically rich capital city which accompanies with own renowned perks.

Slough

Even though high prices and a sluggish market may put many investors off the London housing market, at least for some time, Slough could be very much worth a look owing to the combination of the arrival of Crossrail as well as the forthcoming Heathrow expansion. Both of which are likely to enhance the appeal of people towards Slough. The main reason is that people always search for accommodation which is really affordable and it should be also in a convenient traveling distance of London and beyond. Even, there is also scope for better employment in the future.

Like Slough and other areas, even Norbury has also turned out to be a most sought after area and there are many properties for sale in Norbury. These properties pave way for a better investment in the long run.

Conclusion:

It is always better to look at the pros and cons before making an investment in real estate as they always personify long term growth. Hence, it is better to invest by making a thorough study of the market.

March 4, 2019
The steps necessary to get your debt relief

There is a set of obligatory steps that every over-indebted person can follow to get ahead and find relief. They are simple. The real challenge is to go ahead with each one and finish the cycle having detected the problem and with the true intention of implementing the solution.

It must be recognized that getting out of a debt is a more difficult and slow process than getting into debt. It is a long way although it is possible to carry out as long as the debtor is willing to do it.

Debt inventory
Consolidating all debts first in chronological order in a single listing offers clarity on the true scope of the problem. The idea is to account for everything from credit to debt in the light account. It is necessary to know the time remaining for each debt, the dates of payment, and the cancellation method agreed (fees, half and half, block, etc.)

Income inventory
It consists of recognizing all the income that the person has. From the salary to the money saved in term deposits or mutual funds, anything goes, even the tax return made by the Internal Revenue Service (SII) every year.

Know the true liquidity
Consider both inventories. It’s time to really know how much money the person has to pay debts.

From the income inventory, you have to discard all the money used to pay for the expenses: basic services accounts, telephony, lease or dividend, gasoline from the car, cable TV, to Netflix. These expenses include the payment of the auto insurance as well as other insurance and legal obligations.

Recognize the savings
With this inventory, you have to separate the money that is being used for savings or hosted in financial savings products (term deposit, mutual fund etc.). With this liquidity cleanup, the person will have a true insight of their debts and the money available to pay them.

Nobody likes what they see after doing this exercise. Most of the time it leaves in evidence much more than the debts:

Bad financial organization
Low income
Low savings capacity
Consumption addiction
Fraud or embezzlement
The first thing to avoid is to panic. The debts are repairable as long as the person is willing to follow the following steps:

Ask for help

By the time the debtor realizes he has no money to pay, few alternatives are available. That is why every debtor must have a direct line with their creditors.

The first thing that the over-indebted person must do is approach their creditor and consult what their new payment alternatives might be. It is better to get ahead of the collection agency and negotiate with the creditors a new payment date and renegotiate the credit amounts as best you can.

This step includes separating the waters between the debts; evaluate the possibility of paying the smallest and renegotiate the times of the largest.

Since he gave the notice too late, the debtor should keep in mind that the creditor will offer more time but at a new higher interest rate. Another positive result is that if the debtor manages to pay the debt within the new stipulated time, his financial history will not be so damaged.

Compromise well

If the creditors agreed to reorganize the debt with new payment dates, amounts and fees, the debtor must start this new stage on the right foot.

This includes taking care of the work until you get out of the financial mess, or looking for a job that offers higher income to have more slack to meet the payments.
This does not mean passing on opportunities, but the debtor must study well the returns that these offer; focus efforts on those that will give you money within the new payment terms.
In the case of independent workers, this also includes organizing and prioritizing jobs according to amounts; such income will help to pay such credit while the other parallel project will allow the payment of another debt.
Clean the closet

The debtor already made the inventory of debts and income, asked for help and began to pay little by little. Now the real “cleaning” of all those unnecessary expenses begins.

This includes making some sacrifices, including:

Cancel the cable account
Change the cell phone plan or simply opt for prepaid cards
Stop going out to eat out
Reduce supermarket expenses to the essential or buy in a supermarket with wholesale prices and share expenses with a relative or friendship
Occupy more public transport (which will lead to greater organization of the times), or well organize the use of the car

In this step, the debtor must also evaluate the possibility of selling assets or high-value assets to redirect the money to the payment of the debts.

If the creditors refuses more time

If the debtor follows all the steps but still cannot pay there is one more step, and that is to take part in the Bankruptcy Law for Natural Persons. Ordinary people can exercise this right to declare insolvency and request legal mediation to renegotiate delinquent debts. It is a free and voluntary administrative procedure that facilitates the Superintendence of Insolvency and Re-entrepreneurship (SUPERIR).

Every debtor must know this information before accepting bankruptcy:

The official name of the procedure is the Bankruptcy Procedure of Renegotiation.
Its objective is to renegotiate the obligations of the debtor or facilitate the liquidation of assets for the payment of its current obligations.

It consists of three hearings in which the debtor, its creditors and the Superintendency participate.
The debtor must not have issued service provision tickets during the 24 months prior to the request for renegotiation.

You must have two or more debts due for more than 90 calendar days, that are in force and that exceed the 80 Development Units (among other requirements).
It must have the Unique Code granted by the Civil Registry and Identification Service. This is requested at the service offices.

March 4, 2019
Staying Healthy and Safe: 7 Things to Keep in Mind Before Getting a Health Insurance for Individuals

If you’re in the market for a new health insurance policy, then you’re in the right place. In this article, we’re going to look at a few key issues you need to consider if you’re trying to find the right health insurance plan for you. Sometimes, the choices you make at this point could make a big difference to the level of care you might receive and how much it might cost, so it’s important that you don’t rush and that you take care in making the right decision. If you’re not sure about the term life insurance or regular health insurance, there are a few different’ tips you might want to know.

So, what are the tips?

Make sure you’re covered for the right things
Not all health insurance policies cover all sorts of incidents and hospital costs. If you’ve got specific needs, you might need to consider a niche alternative. Simply make sure that your covered for everything you want to be – as some policies might be cheaper and have a lower up-front cost, but won’t actually provide the level of care you’re looking for. Whether you’re looking for online health insurance of a policy in your local area, you need to make sure you’ve got the right coverage.

Compare alternatives
Try doing a few comparison searches online, there are tons of different places to help you these days. Get an idea for the different costs and alternatives that are available, along with what level of care they provide. Make sure you’ve looked at different options before you put your money into one. Don’t just go for the first policy you find without doing the right research.

Get quotes
While it shouldn’t be the only thing you look at when comparing alternatives, cost is still an important factor. You might want to pay a little more for the full coverage you’re looking for, but it’s still important that you get quotes from different insurers. You might be able to get special introductory offers from some, or others might want to offer you something competitive when they know you’re shopping around.

Check the small print
Make sure you know exactly what the coverage provides for and if there are any additional costs in certain circumstances. Some people get stung with their insurance plans because they didn’t check the small print carefully enough, so don’t make that mistake as well.

Check the excess
Many insurers will have excess policies whereby you are liable for the first small amount of expenditure before the insurer steps in to pay. This might be the first 15,000 INR or so. Make sure you can afford this excess amount, or that you go for a policy without one if it’s a problem. You can also get excess insurance to cover that if you want extra peace of mind.

Look for reviews
When you do your research, check review sites and make sure you’ve got a plan that comes highly recommended.

Get a comprehensive check-up
Some insurers will want to you have a comprehensive health check before insuring you – so this might be a step you want to take so you can know a bit more about what insurance options are available to you.

February 25, 2019