How to Avail Home Loan Subsidy under PMAY?

The Credit-Linked Subsidy Scheme (CLSS) under the Pradhan Mantri Awas Yojana (PMAY) is a government scheme launched to make housing accessible to members of the following economic groups:

• Economically Weaker Section (EWS)

• Low Income Group (LIG)

• Middle-Income Group 1 (MIG-I)

• Middle-Income Group 2 (MIG-II)

The scheme offers a sizable subsidy on the total interest payable on a home loan on the basis of the borrower’s household income. The benefits of the same can be availed on the purchase of a new/resale house or on construction as well. The benefits of the PMAY scheme can also be availed if the borrower is simply upgrading their home into a house that has been made with solid, all-weather-resistant materials. In order to avail the PMAY CLSS subsidy, you must ensure that you are eligible for it.

The PMAY scheme is currently underway in two key components:

1. Pradhan Mantri Awas Yojana- Urban (PMAY- U): The PMAY-U focuses on eliminating the increasing slum habitations in cities, along with dealing with the issues of space crunch due to increased migration.

2. Pradhan Mantri Awas Yojana – Gramin (PMAY-G): The PMAY-G primarily aims to provide houses for the rural people who still live in makeshift or ‘kaccha’ houses.

This article will take you through the ways in which you can avail the subsidy offered to the PMAY beneficiaries. Read on to know more.

• The PMAY CLSS subsidy is only applicable to home loans.

• The maximum limit on the loan amount to avail the benefit of this scheme is INR 6 Lakhs.

• The applicant can avail a maximum subsidy of INR 2.67 Lakhs.

• The scheme is essentially meant for beneficiary families that include a husband, a wife, and two single children. The adult earning member of a family can be treated as a separate MIG household irrespective of his or her marital status.

• The beneficiary family should not own a pucca house anywhere in India.

• If a married couple is jointly applying for the PMAY benefits, they will be eligible for a single subsidy as joint-owners of a pucca home.

• Only those families that have not been the beneficiaries of any government-run housing schemes in the past can apply for the benefits of the PMAY scheme.

• Borrowers that have availed home loan balance transfer facilities will not be eligible to claim the benefit again.

• Families that are applying for PMAY benefits that are given to the members of the MIG category must mandatorily furnish their Aadhaar numbers to avail the subsidy.

Below, you will get to see the kind of monetary benefits that families can avail as beneficiaries of the PMAY CLSS scheme on the basis of their income.

PMAY Features and Benefits Provided to EWS and LIG Families

Features and Benefits Provided to Beneficiaries Belonging to MIG

Note: The details mentioned in the above tables are as per information revealed by the Centre under the PMAY scheme and are subject to change.

The advantages of the housing loan subsidy program include:

• A significant subsidisation of the payable interest on a home loan taken by a PMAY beneficiary.

• The subsidy amount is directly deposited into the bank account. As a result, your outstanding principal amount as well as your EMI amounts come down by a substantial margin.

• The loan amount in itself has no upper limit. If the sum, however, goes past the limits that have been indicated, the interest will be charged at the normal rate of the lender.

• The beneficiary may also be eligible for tax deductions as indicated in the Income Tax Act of 1961.