Pradhan Mantri Awas Yojana

• Get interest subvention of 3 - 6.5% interest subsidy on home loans of up to Rs. 12 Lakhs for a MIG II house
• Scheme available under EWS, LIG, MIG I & MIG II categories to cater to a wide range of customer segment
• Upfront deduction of the interest subsidy results in reduced EMIs for the applicant
• Scheme can be availed through all major public sector and private sector banks
• Interest subsidy available for first house purchased on the applicant’s name only
• The beneficiary or any of his family members should not own a Pucca house in any part of the country.

Snapshot of the PMAY – CLSS Scheme

Credit Linked Subsidy Scheme for EWS/LIG

Beneficiaries of the Economically Weaker Section (EWS) and Low Income Group (LIG) securing home loans from Banks, Housing Finance Companies and other similar institutions will be eligible for interest subsidy at a rate of 6.5 % for a 20-year term or for the loan period, whichever is lower.

The scheme is applicable only for loan amounts of up to Rs.6 lakhs. Amount over and above Rs.6 lakhs will be charged interest at a non-subsidized rate only. The interest subsidy shall be applied on home loans availed for new construction of a residential house or for addition of rooms, kitchen, toilet etc. to an existing house as incremental housing.

The carpet area of houses being constructed under this segment should be up to 30 square metres and 60 square metres for EWS and LIG respectively, in order to be eligible for the credit linked subsidy. The beneficiary may, however, build a house with a larger carpet area, but the subsidy will be offered only for an amount of Rs.6 lakhs.

Credit Linked Subsidy Scheme for MIG

Following the reception for the EWS/LIG CLSS Scheme, the Government launched the scheme for the MIG (Middle Income Groups) segment as well. This scheme is split between MIG I & MIG II, based on the income per annum. MIG I covers Rs.6,00,001 to Rs.12,00,000 and for MIG II it is Rs.12,00,001 to Rs.18,00,000 per annum. MIG I gets an interest subsidy of 4% on loans of up to Rs.9 lakhs. MIG II gets an interest subsidy of 6% on loan amounts of up to Rs. 12 lakhs. Any home loan amount above Rs.9 lakhs and Rs.12 lakhs would be at a non-subsidized rate.

The carpet area of houses being constructed under this segment should be up to 90 square metres and 110 square metres for MIG I and MIG II respectively, in order to be eligible for the credit linked subsidy.

PMAY – CLSS Scheme Eligibility Criteria

Here are the basic eligibility criteria to avail benefits under the scheme: 

The applicant or any family member of the applicant shall not own a house in any part of the country.

Either a single or a joint ownership deal is allowed in the case of a married couple, but they will receive only one subsidy.

The applicant or any family members of the applicant must not have benefited from any housing-related schemes offered by the Government of India.

How to apply for subsidy under the PMAY – CLSS scheme?

The PMAY interest subsidy can be availed when you apply for a home loan from a lending institution. This scheme is available in public sector or private sector banks and even NBFCs offering home loans.

Under the scheme, there will be no processing fee for the amount of qualifying home loans as per income requirements. For additional loan sums above the qualifying loan amount, the usual processing fee can be paid to interest subsidy borrowers.

FAQs

End Note

In Budget 2017, affordable housing was given infrastructure status which should help developers take advantage of its associated benefits. But to a common man, the house's timely delivery is still a distant dream. The builders had to complete the affordable housing projects in 3 years to take advantage of the benefits but now (Budget 2017) they have to complete them in 5 years. Users should analyse and evaluate all available options to make the right decision.