What Is Pradhan Mantri Awas Yojana (PMAY)?

The Pradhan Mantri Awas Yojana (PMAY) (URBAN)-Housing for All was a mission that was launched by the Government of India with the aim of boosting home ownership. It aimed at achieving ‘Housing for All’ by the year 2022.Under this mission a subsidy scheme called Credit Linked Subsidy Scheme (CLSS) was launched to provide interest subsidy on loans availed for purchase/ construction/ extension/ improvement of a house. The PMAY scheme caters to Economical Weaker Section (EWS)/Lower Income Group(LIG) and Middle Income Groups (MIG) of the society, given the projected growth of urbanization & the consequent housing demands in India. 

What is a Credit Linked Subsidy Scheme (CLSS)?

Credit Linked Subsidy Scheme (CLSS) is a benefit offered under the PMAY Scheme wherein Economically Weaker Section (EWS), Low Income Group (LIG) and Medium Income Group (MIG) can avail home loans at reduced EMIs with the help of an interest subsidy. The interest subsidy will be credited upfront to the beneficiary on the principal amount which would result in bringing down effective home loan and EMI.

Credit Linked Subsidy Scheme (CLSS) under PMAY makes the home loan affordable as the subsidy provided on the interest component reduces the outflow of the customer on the home loan. The subsidy amount under the scheme largely depends on the category of income that a customer belongs to, and the size of the property unit being financed.

Pradhan Mantri Awas Yojana Features

• Simple Documentation Process

  Availing a home loan under Pradhan Mantri Awas Yojana with HDFC is simple and quick with hassle-free documentation

• Customised Loan Repayment Options

  HDFC offers customized home loan repayment options on home loans

PMAY CLSS Benefits as per Income Categories

The benefits as per the income categories are as follows:

CLSS EWS/LIG Scheme under PMAY:

LIG and EWS categories are defined as those whose annual household incomes are above ₹3 lakh but below ₹6 lakh .The beneficiaries belonging to the Economically Weaker Section (EWS) and Lower Income Group (LIG) categories are eligible for a maximum interest subsidy of 6.5%, provided that the unit being constructed or purchased does not exceed the carpet area requirement of 60 square metres (approximately 645.83 square feet). The interest subsidy is limited up to a maximum loan amount of ₹6 lakh.

The scheme was extended to include the Middle Income Groups (MIG) in 2017.This scheme was divided into two parts i.e. MIG 1 and MIG 2.

CLSS MIG 1 Scheme under PMAY:

MIG 1 category is defined as the one with household income of above ₹6 lakh but below ₹12 lakh. The beneficiaries in the MIG- 1 category are eligible for a maximum interest subsidy of 4 %, provided that the unit being constructed or purchased does not exceed the carpet area requirement of 160 square metres (approximately 1,722.23 square feet). This subsidy is however limited to a maximum loan amount of ₹9 lakh over a home loan tenure of up to 20 years.

CLSS MIG 2 Scheme under PMAY:

MIG 2 category is defined as the one with household income of above ₹12 lakh but below ₹18 lakh.The beneficiaries of the MIG- 2 category are eligible for a maximum interest subsidy of 3%, provided that the unit being constructed or purchased does not exceed the carpet area requirement of 200 square metres (approximately 2,152.78 square feet). This subsidy is however limited to a maximum loan amount of ₹12 lakh over a home loan tenure of up to 20 years.

Pradhan Mantri Awas Yojana Eligibility

• The beneficiary family should have an annual income of up to ₹ 18 Lakh to avail benefit under PMAY scheme
• 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
• 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.
• In case of married couple, either of the spouse or both together in joint ownership will be eligible for a single subsidy
  

Pradhan Mantri Awas Yojana 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)

Pradhan Mantri Awas Yojana Coverage:

All statutory towns as per Census 2011 and towns’ notified subsequently, including planning area as notified with respect to statutory town.

PMAY Scheme Guidelines

* woman ownership is not mandatory for construction / extension

*As per amendment dated 15.03.2018, an adult earning member (irrespective of marital status) can be treated as a separate household. Provided also that in case of a married couple, either of spouses or both together in joint ownership will be eligible for a single house, subject to income eligibility of the household under the scheme.

**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 HDFC 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 of interest.
• There is no cap on the loan amount or the cost of the property.

*for more details on the scheme please refer www.pmay-urban.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.