Pradhan Mantri Awas Yojana (PMAY) (Urban) – The Government of India has launched the Housing for All Mission with an aim to increase homeownership. The goal is to achieve “Housing for All” by 2022. Under this mission, a subsidy scheme named Credit Linked Subsidy Scheme (CLSS) was launched to provide interest subsidy on loans received for purchase/construction/expansion/improvement of a house. Following the urbanization and related housing demands in India, the PMAY scheme will cater to the needs of the Economically Backward Classes (EWS)/Low Income Group (LIG) and Middle Income Group (MIG) in the society.
Interest subsidy up to 6.50%* p.a.
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Pradhan Mantri Awas Yojana (PMAY)
What is Pradhan Mantri Awas Yojana (PMAY)?
What is Credit Linked Subsidy Scheme (CLSS)?
Credit Linked Subsidy Scheme (CLSS) is one of the benefits offered under the PMAY scheme, which includes Economically Weaker Group (EWS), Low Income Group (LIG), and Middle Income Group (MIG) interest subsidized home loans. The interest subsidy is credited upfront to the beneficiary on the principal, resulting in a reduction in effective home loans and EMI.
The Credit Linked Subsidy Scheme (CLSS) under PMAY makes home loans affordable as the subsidy on the interest component reduces the customer’s outlay on the home loan. The amount of subsidy under this scheme is based on the income category of the subscriber and the size of the unit of an asset to be financed.
Features of Pradhan Mantri Awas Yojana
Interest Subsidy Benefit for EWS/LIG
You can get a home loan and save up to 2.67 lakhs under the PMAY CLSS subsidy
easy documentation process
With HDFC it is easy and fast to get a home loan under Pradhan Mantri Awas Yojana, with hassle-free documentation
Customized Loan Repayment Option
- Offers customized home loan repayment options on HDFC Home Loan
- Income group wise benefits of PMAY CLSS
- Benefits as per income categories are as follows:
CLSS EWS/LIG Scheme under PMAY:
LIG and EWS categories define those whose annual family income is more than ₹3 lakh but less than ₹6 lakh. Beneficiaries belonging to Economically Weaker Category (EWS) and Low Income Group (LIG) categories are eligible for interest subsidy up to a maximum of 6.5%, while the carpet area of the unit is to be constructed or purchased does not exceed 60 square meters (approximately 645.83) Should be. Square feet). The interest subsidy is limited to a maximum loan amount of ₹6 lakh.
The scheme was expanded to include Middle Income Groups (MIGs) in 2017. The scheme is divided into two parts, namely MIG 1 and MIG 2.
CLSS MIG 1 Scheme under PMAY:
The MIG 1 category is defined as having a family income of more than ₹ 6 lakh and less than ₹ 12 lakh. Beneficiaries in the MIG-1 category are eligible for a maximum interest rate of 4%, but the unit of manufacture or purchase should not exceed the carpet area requirement of 160 sq m (approximately 1,722.23 sq ft). However, the subsidy is limited to a maximum of ₹9 lakh for home loans up to 20 years.
Prime Minister’s Housing Scheme is eligible
- The annual income of the beneficiary family should be up to 18 lakhs to get benefits under PMAY scheme
- Should not have a pucca house anywhere in India in his name or in the name of any member of his family.
- The beneficiary family should not have received central assistance under any housing scheme or any PMAY scheme provided by the Government of India.
- In case of married couple, one or both of them are entitled to a subsidy for joint ownership only.
The beneficiaries of the Prime Minister’s Housing Scheme are
Beneficiary family means husband, wife, and unmarried children. (Member earning income irrespective of marriage is counted under an additional household in MIG category)
Pradhan Mantri Awas Yojana Coverage:
All statutory towns and subsequently notified cities as per 2011 census, that statutory town is taluka planning area.
PMAY Scheme Guidelines
- Women ownership not mandatory for construction/expansion
- As per Amendment dated 15.03.2018, earning adult member (irrespective of marital status) can be treated as a detached household. In case of a married couple, one or both the spouses are eligible for a house in joint ownership, subject to the income eligibility of the family as per the scheme.
Loan for MIG-1 & 2 should be sanctioned on or after 1-1-2017
- Aadhar number of the beneficiary family for MIG category is incorrect.
- Interest subsidy is available for a loan of 20 years or loan tenure, whichever is.
- The interest subsidy is deposited directly into the loan account through HDFC, thereby reducing the housing loan amount and Equated Monthly Installment (EMI).
- The Net Present Value (NPV) of the interest subsidy is calculated at 9% discount rate.
- With some limitations The excess loan should be at any non-subsidised interest rate
- There is no limit on the loan amount but on the value of the property.
- For more details about the scheme please visit www.pmay-urban.gov.in
