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.
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.
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).
The beneficiary family should meet the following conditions in order to be eligible for Credit Linked Subsidy Scheme (CLSS) under PMAY:
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.
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.
Yes, this rate is applicable only for first-time pucca home buyers as per PMAY criteria.
Pradhan Mantri Awas Yojana is available for salaried as well as self-employed customers.
The Pradhan Mantri Awas Yojana is applicable for a maximum considered tenure of 20 years.
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.
No, there is no loan amount limit for loan accounts which are booked under PMAY-CLSS scheme.