The Pradhan Mantri Awas Yojana (PMAY) Credit Linked Subsidy Scheme (CLSS) – ‘Housing for All’ is a home loan scheme launched by our honourable Prime Minister Shri Narendra Modi. The scheme envisions ‘Housing for All’ by the year 2022. It benefits people belonging to the Economically Weaker Section (EWS), Low Income Group (LIG), Middle Income Group-I (MIG-I), and Middle Income Group-II (MIG-II) of society. Beneficiaries availing this scheme are eligible to avail interest subsidy on the purchase or construction of a house or the enhancement of dwelling unit.
Pradhan Mantri Awas Yojana (PMAY), with two components Pradhan Mantri Awas Yojana (Urban) (PMAY-U) for the urban poor and Pradhan Mantri Awaas Yojana (Gramin) (PMAY-G and also PMAY-R) for the rural poor, is an initiative by Government of India in which affordable housing will be provided to the urban poor with a target of building 20 million affordable houses by 31 March 2022. This scheme is converged with other schemes to ensure houses have a toilet, Saubhagya Yojana electricity connection, Ujjwala Yojana LPG gas connection, access to drinking water and Jan Dhan banking facilities, etc. Cumulative total number of funded houses approved thus far is 39, 25,240 in urban area including the subsumed RAY scheme and completion of construction of 5 million rural houses by March 2018 and 10 million rural houses by March 2019 (Feb 2018).
Eligibility criteria
Condition for PMAY: (a) Beneficiary max age 70 years, (b) EWS (Economic Weaker Section) annual income Less than Rupees 3 Lac and LIG (Lower Income Group) Annual Income 300001 to 600000 Lac INR as well as Mid Income group since Feb 2017, and (c) The beneficiary should not have an own dwelling unit on the name of any family member in any part of India The houses given under this scheme will be owned by females or jointly with males.
- The beneficiary family should not own a pucca house in his/her or in the name of any member of his/her family in any part of India.
- In case of married couple, either of the spouse or both together in joint ownership will be eligible for a single subsidy.
- The beneficiary family should not have availed of central assistance under any housing scheme from Government of India or any benefit under any scheme in PMAY.
Beneficiary
The beneficiary family will comprise husband, wife and unmarried children. (An adult earning member irrespective of marital status can be treated as a separate household in MIG category)
Phases
3 Phases of PMAY envisage starting and completing the house construction work as follows:-
PMAY Phase-1 from April 2015 to March 2017 to cover 100 cities.
PMAY Phase-2 from April 2017 to March 2019 to cover additional 200 cities.
PMAY Phase-3 from April 2019 to March 2030 to cover the remaining cities.
Process of PMAY
The process of receiving the interest subsidy benefits of PMAY are as follows:-
- After the loan is disbursed, the LENDER BANK/NBFC will claim subsidy for eligible borrowers from National Housing Bank (NHB).
- NHB after due diligence would approve & credit the subsidy amount to LENDER BANK/NBFC for all eligible borrowers.
- The subsidy will be calculated on the NPV (Net Present Value) method at a discount rate of 9%.
- On receipt of subsidy amount from NHB , same is credited to respective home loan account of the borrower and EMI is reduced proportionately.
Coverage:
All statutory towns as per Census 2011 and towns’ notified subsequently, including planning area as notified with respect to statutory town.
Scheme Details
| CLSS Scheme Type | Eligibility Household Income ( Rs.) | Carpet Area-Max (sqm) | Interest Subsidy (%) | Subsidy calculated on a max loan of | Loan Purpose | Validity of scheme | Max Subsidy (Rs.) | Woman Ownership |
|---|---|---|---|---|---|---|---|---|
| EWS and LIG | Upto Rs. 6,00,000 | 60 sqm | 6.50 % | Rs. 6,00,000 | Purchase/Self Construction/Extension | 31/03/2022 | 2.67 Lacs | Yes * |
| MIG 1 ** | Rs. 6,00,001 to Rs. 12,00,000 | 90 sqm | 4.00 % | Rs. 9,00,000 | Purchase/Self Construction | 31/12/2017 | 2.35 Lacs | Not Mandatory |
| MIG 2 ** | Rs. 12,00,001 to Rs. 18,00,000 | 110 sqm | 3.00 % | Rs. 12,00,000 | Purchase/Self Construction | 31/12/2017 | 2.30 Lacs | Not Mandatory |
* woman ownership is not mandatory for construction / extension
**for MIG – 1 & 2 loan should be approved on/or after 1-1-2017
- Aadhar number(s) of the beneficiary family are mandatory for MIG category.
- The interest subsidy will be available for a maximum loan tenure of 20 yrs or the loan tenure whichever is lower.
- The interest subsidy will be credited upfront to the loan account of beneficiaries through LENDER BANK/NBFC resulting in reduced effective housing loan and Equated Monthly Installment (EMI).
- The Net Present Value (NPV) of the interest subsidy will be calculated at a discount rate of 9 %.
- The additional loan beyond the specified limits, if any to be at non-subsidized rate.
- There is no cap on the loan amount or the cost of the property.
*for more details on the scheme please refer www.mhupa.gov.in
Note: Assessment of your eligibility to avail the benefits of CLSS is at the sole discretion of the Government of India. Contents herein are parameters outlined under the scheme for assessment of entitlement.
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