Pradhan Mantri Awas Yojana


On 1st June 2015, the Pradhan Mantri Awas yojana has been announced by Narendra Modi, the Prime Minister of India. Again, this PMAY or Pradhan Mantri Awas Yojana housing for all urban scheme is considered to be an important initiative by the Government of India. So, the main purpose is to provide reasonably priced housing specifically to the poor people living in the urban area. The key mission of this program is to specifically offer affordable housing to almost every person by the particular year of 2022.

As a part of this scheme, the reasonably priced house will be preferably constructed in designated towns along with the cities by making use of the eco-friendly methods of construction. It greatly benefits the urban population in India. 


Important Beneficiaries In The PMAY 

  • The family of the beneficiary will specifically comprise of the wife, husband, unmarried daughters and or unmarried sons.

  • Along with that, the family of the beneficiary should not own a pucca house either in his or her name or else in the name of any specific family member in any part of India. 

 

How To Identify And Select Beneficiaries Under PMAY?

  • The PMAY (Urban) scheme is designated to meet the housing requirements of the urban poor. Along with that, this scheme is also very helpful to certainly meet the housing requirements of the slum dwellers who reside in the slum areas with poor infrastructure, inappropriate sanitation, and facilities of drinking. 
  • Mainly, the beneficiaries of PMAY (U) are Low-income Groups (LIGs), Economically Weaker Section (EWS) as well as Middle Income Groups (MIGs). 
  • The EWS  category beneficiaries are qualified for the overall assistance under this particular scheme. But, the beneficiaries from both MIG as well as LIG categories are suitable for the CLSS or Credit Linked Subsidy Scheme specifically in the PMAY. 
  • The applicant should necessarily provide an affidavit as proof of income to the authority for being recognized as an EWS or LIG beneficiary under the Scheme. 

 

Pradhan Mantri Awas Yojana (PMAY) - Credit Linked Subsidy Scheme (CLSS)

The "Credit Linked Subsidy Scheme” (CLSS) under Pradhan Mantri Awas Yojana (PMAY) was announced by our Honourable Prime Minister Shri Narendra Modi. The scheme envisages the vision of housing for all by the year 2022. Under this scheme, interest subsidy on purchase/ construction/ extension/ improvement of house is provided to customers belonging to Economical Weaker Section (EWS)/Lower Income Group (LIG)/Middle Income Group (MIG).

Who can avail Pradhan Mantri Awas Yojana – Credit Linked Subsidy Scheme (PMAY-CLSS)?

The beneficiary family should meet the following conditions in order to be eligible for Credit Linked Subsidy Scheme (CLSS) under PMAY:

  • Beneficiary should be a family comprising of husband, wife and unmarried children
  • Beneficiary can also be an unmarried individual earning member of the family
  • Beneficiary should not own a pucca house either in his/her name or in the name of any member of his/her family in any part of India
  • Beneficiary should be meeting income criteria defined as per various categories under the scheme
  • Beneficiary should not have received central assistance under the mission, “Housing for all by 2022”
  • For beneficiaries belonging to EWS and LIG categories, woman ownership is mandatory in the property under consideration for all cases except in cases where the land is already owned prior to 17 June 2015 by the customer and loan is availed only for self-construction of a house over the self-owned land
  • The property must have basic trunk infrastructure such as water supply, electricity supply and drainage/sanitation facility

Note: As per the amendment in guidelines, the definition of ‘beneficiary’ was broadened to include an adult earning member (irrespective of marital status) subject to certain provisos, making him/her eligible to apply of PMAY-Urban under CLSS for MIG scheme effective from 01 January 2017. Subsequently, this definition of 'beneficiary' was also made applicable to entire PMAY-Urban scheme w.e.f. 27 June 2017.

 

How will I receive the interest subsidy benefit under Credit Linked Subsidy Scheme (CLSS) of PMAY?

The bank will claim subsidy benefit for eligible borrowers from National Housing Bank (NHB). The NHB will conduct a due diligence to exclude claims where customer has submitted multiple requests.

For all eligible borrowers, the subsidy amount would be paid to the bank. Once the bank receives the interest subsidy, it will be credited upfront to the loan account. The subsidy will be calculated on Net Present Value (NPV) at 9% discount rate.

E.g., the borrower avails a loan for Rs. 8 Lakh and the subsidy works out to Rs. 2,20,000. The amount (Rs. 2,20,000) would be reduced upfront from the loan (i.e., the loan would reduce to Rs. 5,80,000) and the borrower would pay EMIs on the reduced amount of Rs. 5,80,000.

Note: The above example is for illustration purpose only and the subsidy* amount will depend on the actual amount received or any changes done by NHB on the same.

 

Is this rate applicable only for first-time home buyers?

Yes, this rate is applicable only for first-time pucca home buyers as per PMAY criteria.

 

PMAY subsidy is applicable for what category of customer profiles?

Pradhan Mantri Awas Yojana is available for salaried as well as self-employed customers.

 

What is the maximum tenure on which the PMAY subsidy is applicable?

The Pradhan Mantri Awas Yojana is applicable for a maximum considered tenure of 20 years.

 

How will my loan eligibility be assessed?

The loan eligibility of the applicant will be assessed based on internal guidelines and processes of the bank as amended from time to time.

As per the extant requirement, the borrower will be required to submit income documents like, salary slip, ITR, bank statement, existing loan details etc. for the purpose of eligibility assessment.

 

Is there any loan amount limit on Credit Linked Subsidy Scheme (CLSS) under PMAY?

No, there is no loan amount limit for loan accounts which are booked under PMAY-CLSS scheme.