Pradhan Mantri Awas Yojana

Ministry of Housing and Urban Poverty Alleviation (MoHUPA) has introduced in June 2015, an interest subsidy scheme called Credit Linked Subsidy Scheme (CLSS) under Pradhan Mantri Awas Yojana (URBAN)-Housing for All, for purchase/ construction/ extension/ improvement of house to cater Economical Weaker Section(EWS)/Lower Income Group(LIG)/Middle Income Group (MIG), given the projected growth of urbanization & the consequent housing demands in India.

PMAY Benefits

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.

The benefits as per the income categories are as follows:

EWS/LIG category:

LIG and EWS categories are defined as those whose annual household incomes are above Rs. 3 lakh but below Rs. 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 Rs. 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.

MIG 1 category:

MIG 1 category is defined as the one with household income of above Rs. 6 lakh but below Rs. 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 Rs. 9 lakh over a home loan tenure of up to 20 years.

MIG 2 category:

MIG 2 category is defined as the one with household income of above  Rs. 12 lakh but below Rs. 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 Rs. 12 lakh over a home loan tenure of up to 20 years.

Pradhan Mantri Awas Yojana Eligibility

  1. 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.
  2. In case of married couple, either of the spouse or both together in joint ownership will be eligible for a single subsidy.
  3. 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)

Coverage:

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

PMAY Scheme Details

CLSS Scheme Type EWS and LIG MIG 1 ** MIG 2 **
Eligibility Household Income ( Rs.) Upto Rs. 6,00,000 Rs. 6,00,001 to Rs.12,00,000 Rs. 12,00,001 to Rs. 18,00,000
Carpet Area-Max (sqm) 60 sqm 160 sqm 200 sqm
Interest Subsidy (%) 6.5% 4.00% 3.00%
Subsidy calculated on a max loan of Rs. 6,00,000 Rs. 9,00,000 Rs. 12,00,000
Loan Purpose Purchase/Self Construction/Extension Purchase/Self Construction Purchase/Self Construction
Validity of scheme 31/03/2022 31/03/2020 31/03/2020
Max Subsidy (Rs.) 2.67 Lacs 2.35 Lacs 2.30 Lacs
Woman Ownership Yes * Not Mandatory Not Mandatory

* woman ownership is not mandatory for construction / extension

*As per amendment dated 15.03.2018, an adult earning member (irrespective of martial 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

  1. Aadhar number(s) of the beneficiary family are mandatory for MIG category.
  2. The interest subsidy will be available for a maximum loan tenure of 20 yrs or the loan tenure whichever is lower.
  3. 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).
  4. The Net Present Value (NPV) of the interest subsidy will be calculated at a discount rate of 9 %.
  5. The additional loan beyond the specified limits, if any to be at non-subsidized rate.
  6. 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.

 

Who can avail PMAY subsidy under Credit Linked Subsidy Scheme (CLSS)?

A beneficiary family not owning a house in any part of the India is eligible for this subsidy subject to income criteria as defined for the family.

What is the definition of beneficiary family?

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)

What are the income norms for EWS, LIG and MIG categories?

Please refer scheme detail as above.

Is this applicable for properties in rural areas?

No.

Is woman ownership mandatory to be eligible for PMAY subsidy?

Woman ownership or co-ownership is mandatory for EWS and LIG. However, this condition is not mandatory for self construction/extension or MIG categories.

What is the process of claiming interest subsidy?

After the loan is disbursed, the required details are sent by HDFC to NHB for validation of data and other checks. NHB after necessary due diligence approve the subsidy to eligible borrowers.

How will I receive the interest subsidy benefit?

  1. After the loan is disbursed, the HDFC will claim subsidy for eligible borrowers from National Housing Bank (NHB).
  2. NHB after due diligence would approve & credit the subsidy amount to HDFC for all eligible borrowers.
  3. The subsidy will be calculated on the NPV (Net Present Value) method at a discount rate of 9%.
  4. On receipt of subsidy amount from NHB , same is credited to respective home loan account of the borrower and EMI is reduced proportionately.

What happens when PMAY subsidy has been disbursed but due to certain reasons, the construction of the house is stalled?

In such cases, the subsidy is to be recovered and refunded to the Central Government.

Can a beneficiary family get a loan term beyond 20 years?

Yes, beneficiary can avail a longer term beyond 20 years as per HDFC credit norms but the subsidy will be restricted to a max term of 20 years.

Is there any limit on the loan amount or the cost of the property?

No, but the subsidy will be limited to the loan amount defined against each category and additional amount will be at non- subsidized rate of interest.

How will the interest subsidy work in case I transfer my home loan to another lender?

In case a borrower who has taken a housing loan and availed of interest subsidy under this scheme but later on switches to another lending institution for balance transfer, such beneficiary will not be eligible to claim the benefit of this scheme again.

Where can I apply for Credit Linked Subsidy Scheme (CLSS)?

You can apply for housing loan under CLSS at any HDFC branches.

Do I have to give any additional documents to avail PMAY subsidy?

No, there are no additional documents except a self declaration of not owning a pucca house in the format as available in HDFC offices.

Can NRI avail PMAY subsidy?

Yes.

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