The Pradhan Mantri Awas Yojana, when initially launched in 2015, was meant to serve homebuyers from lower-income groups. However, with each passing year, several reforms have been brought into the policy and the initiative undertaken by the Indian Government today provides affordable housing to most sections of the society. PMAY stands to fulfil the ‘housing for all by 2022’ promise not only by providing credit-linked subsidies but also through many other significant reforms.
What is the Pradhan Mantri Awas Yojana eligibility?
Under the PMAY home loan scheme, one can get an interest subsidy on their home loan through the Credit Linked Subsidy Scheme (CLSS). Once eligible for it, the borrower can claim an interest subsidy of up to 6.5% on their home loan under Pradhan mantri awas yojana(PMAY). Here are the eligibility terms that one needs to abide by to claim the subsidy.
- Credit linked subsidy is available at 4% for loans up to Rs. 9 lakh, in case a person belongs to MIG 1 category.
- Credit linked subsidy is available at 3% for loans up to Rs. 12 lakh, if one belongs to MIG 2 category.
- Credit linked subsidy is available at 6.5% for loans up to Rs. 6 lakh, if one belongs to EWS or LIG category.
In the PMAY list, an individual can qualify for a category only if their cumulative household income every year stands within a specified amount. Here’s what makes them eligible.
- Applicants are eligible for the EWS segment provided their household annual income stands below Rs. 3 lakh.
- Applicants can qualify under the LIG segment provided their household annual income is Rs. 3-6 lakh.
- Applicants can qualify for the MIG 1 segment provided their household annual income is Rs. 6-12 lakh.
- Applicants can qualify for the MIG 2 segment provided their household annual income is Rs. 12-18 lakh.
What Are The Benefits Of CLSS Scheme?
- Borrowers receive the subsidized amount from the government directly in their loan account. This brings down their outstanding principal amount, thus, reducing the EMIS.
- As EMIS becomes more manageable, it’s easier to repay the housing loan. Alternatively, if borrowers choose to pay the actual EMIS, the loan tenor shortens. As a borrower, one can select a suitable option as per your requirements.
- Applicants claiming this interest subsidy can also avail of tax benefits on the home loan.
Apart from this, one also needs to meet the following requirements to receive the interest subsidy on a home loan under PMAY.
- Beneficiaries of the CLSS component must consist of only the husband, wife and unmarried children.
- A female member of the family is mandated to own or co-own the house for beneficiaries under the EWS and LIG categories.
- Neither the borrower nor his family must own a pucca house anywhere in the country and must not be beneficiaries of any other government housing schemes in India.
The borrowers can easily determine their PMAY eligibility using an online PMAY eligibility calculator in just a few seconds by providing their income data, loan amount and a few other details.
Keep in mind that those from the MIG categories may use the CLSS benefit to acquire and construct a home while those from EWS and LIG categories may also use it to enhance existing homes. In addition, the government gives preference to women, minorities, manual scavengers, those from Scheduled Castes/ Scheduled Tribes/ Other Backward Classes, transgenders and those who have disabilities.
Application procedure to avail of home loan subsidy under Pradhan mantri awas yojana
To avail of the interest subsidy on a home loan under PMAY, follow the steps given below.
- First, check if one meets the beneficiary terms by using the PMAY eligibility calculator or going through the list yourself
- Next, choose a lender enlisted under the PMAY scheme, who offers PMAY benefits
- Apply for a home loan with one of these lenders and fill the application form for the CLSS subsidy
- Once the home loan application is approved, the lender will transfer the loan amount into the loanee’s account and then contact the Central Nodal Agency who releases the subsidy to the lender
- On receiving the subsidy, the lender will deposit the amount into the loanee’s account, and then the loanee will be able to pay lower EMIs
Note that the borrower has to pay EMIs per the original interest rate until the lender’s subsidy application is approved. However, the borrower will be compensated for any extra amount that he/she pays to the lender.
Apply for an affordable Home Loan with lenders associated with HFC’s to enjoy the PMAY benefit in India. Here one can get a substantial sanction for a tenor of up to 30 years. Along with this, one can also avail of a low-interest top-up loan and enjoy easy doorstep pickup of documents to fast-track the loan application.
