Pradhan Mantri Awas Yojna (PMAY) – Credit Linked Subsidy Scheme (CLSS) is a government scheme launched with an aim to make buying home easier for:
- Economically Weaker Section (EWS)
- Low Income Group (LIG)
- Middle-Income Group 1 (MIG-I)
- Middle-Income Group 2 (MIG-II)
The scheme offers subsidized home loan interest rates based on your household income. The benefit can be availed not only on the purchase of a new/resale house but also on the construction, extension or improvement of existing kucha/semi-pucca houses. To avail the home loan subsidy, you must be first eligible for it. In this post, we will guide you on how you can avail subsidy under the PMAY scheme.
Note: The Union Cabinet has extended the implementation period of Pradhan Mantri Awas Yojana – Urban (PMAY – U) till December 31, 2024 with all verticals except Credit Linked Subsidy Scheme (CLSS). CLSS vertical for MIG I & II under PMAY U was up to March 31, 2021 and for LIG/EWS was up to March 31, 2022. During the extension period no additional houses will be sanctioned. However, financial assistance is to be provided for the completion of 122.69 lakh houses, which were already sanctioned till March 31, 2022, under BLC, AHP & ISSR verticals of PMAY U.
Apply for Home Loan at Attractive Interest Rates Click Here
PMAY Eligibility Criteria
To access PMAY benefits, you must fulfill the following eligibility criteria:
PMAY Basic Eligibility Parameters:
- The scheme is for beneficiary families comprising of a husband, wife and unmarried children. An adult earning member of a family irrespective of marital status can be treated as a separate household in MIG category.
- The beneficiary family should not own a pucca house in the name of any family member across India.
- In the case of married couples, either of the spouse or both together in joint ownership will be eligible for a single subsidy.
- The beneficiary families should not have benefited under any government housing scheme including PMAY.
- Home loan borrowers, who availed the subsidy but later on switched to another lender for a balance transfer, will not be eligible to claim the benefit again.
- Beneficiary families under the MIG income group mandatorily need to furnish their Aadhaar numbers to avail the benefit of the subsidy.
Apply for Home Loan at Attractive Interest Rates Click Here
PMAY Eligibility Parameters as Per Income Criteria:
1. EWS/LIG
- Eligible Family Income: The annual household income as per the income category must be:
- EWS – Upto Rs. 3 lakh
- LIG – Between Rs. 3 lakh and Rs. 6 lakh
- Woman Ownership: Woman ownership is mandatory. The house, whether new or existing, should be in the name of an adult female member of the family or in joint ownership with the wife (if married). The condition is not mandatory in case of house construction or extension/renovation of an existing kuccha/semi-pucca house. The house can be solely in the name of a male member of the household, provided there is no adult female member in the family.
- Carpet Area: The maximum carpet area of the house under the scheme must be:
- EWS: Upto 30 sq. mts.
- LIG: Upto 60 sq. mts.
2. MIG (I & II)
- Eligible Family Income: The annual household income as per the income category must be:
- MIG-I: Between Rs. 6 lakh and Rs. 12 lakh
- MIG-II: Between Rs. 12 lakh and Rs. 18 lakh
- Woman Ownership: Woman ownership is not mandatory.
- Carpet Area: The carpet area of the house under the scheme must be:
- MIG-I: 160 sq. mts.
- MIG-II: 200 sq. mts.
Apply for Home Loan at Attractive Interest Rates Click Here
Process to Claim PMAY Interest Subsidy Benefit
The home loan interest subsidy under PMAY is routed through 2 central nodal agencies – Housing & Urban Development Corporation (HUDCO) and NHB. These government institutions channelize the subsidy to the pre-listed lending institutions, which further help the eligible beneficiaries to avail the interest subsidy benefit. https://www.paisabazaar.com/home-loan/pmay-urban/ The process to claim PMAY interest subsidy benefit is given as follows:
-
- After your home loan is disbursed, the lender will send the required details to the National Housing Bank (NHB) for data validation and other checks.
- NHB after due diligence approves the subsidy to eligible borrowers.
- The subsidy amount will be disbursed to the lender for all eligible borrowers.
- On receiving the subsidy amount from NHB, the lender will credit the same to the respective home loan account of the borrower and will be adjusted in the loan accordingly.
Apply for Home Loan at Attractive Interest Rates Click Here
PMAY – CLSS Scheme Details
EWS/LIG – Features & Benefits
| Particulars | EWS | LIG |
| Eligible annual household income | Upto Rs. 3 lakh | Between Rs. 3 lakh and Rs. 6 lakh |
| Carpet area of the dwelling (max.) | 30 sq.m. | 60 sq.m. |
| Subsidy calculated on a max. loan of | Rs. 6 lakh | Rs. 6 lakh |
| Interest subsidy (% p.a.) | 6.50% | 6.50% |
| Subsidy amount (max.) | Rs. 2.67 lakh | Rs. 2.67 lakh |
| Maximum loan tenure (in years) | 20 yrs. | 20 yrs. |
| Discount rate to calculate Net Present Value (NPV) of the interest subsidy | 9% | 9% |
| Woman Ownership | Mandatory (except for loan availed for construction) | Mandatory (except for loan availed for construction) |
| Validity of the scheme | 31 March 2022 | 31 March 2022 |
| Applicability | Loans approved on/after 01/01/2017 | Loans approved on/after 01/01/2017 |
Note: The details in the table are as per the information framed by the Government of India under PMAY. The information is subject to change as and when there is a change in the scheme by the Government of India.
Apply for Home Loan at Attractive Interest Rates Click Here
MIG-I/MIG-II – Features & Benefits
| Particulars | MIG-I | MIG-II |
| Eligible annual household income | Between Rs. 6 lakh and Rs. 12 lakh | Between Rs. 12 lakh and Rs. 18 lakh |
| Carpet area of the dwelling (max.) | 160 sq.m. | 200 sq.m. |
| Subsidy calculated on a max. loan of | Upto Rs. 9 lakh | Upto Rs. 12 lakh |
| Interest subsidy (% p.a.) | 4.00% | 3.00% |
| Subsidy amount (max.) | Rs. 2.35 lakh | Rs. 2.30 lakh |
Apply for Home Loan at Low Interest Rates Click Here
90 Comments
Which address is needed for pmay current address or new bought home address on proof??
Hi Rahul,
PMAY applicants are required to submit the address proof of their current residence.
Hi I’m unmarried women planning to buy my first home under my name. But my father owns one home under his name in loan. Whether am I eligible to avail PMAY.
Hi Yashila,
Yes, you are eligible to avail PMAY subsidy, provided you fulfil other eligibility criteria under PMAY. PMAY benefits are available to children, married or unmarried, who live with their parents and the parents own one or more residential properties.
I availed a home loan from LICHFL in September 2014, but later shifted to SBI in 2018. Am I eligible for PMAY subsidy?
Hi Chiranjit,
You are not eligible for PMAY subsidy as your first loan was sanctioned before the cut off date 17/6/2015 (for EWS/LIG) and 01/01/2017 (for MIG I & MIG II). However, you can contact your bank and discuss if there are any exceptions to it or not.
I have availed two time home loan and first was sanctioned in Sep 2016 and second was in Aug 2019. Can I avail the subsidy.
Hi Sourav,
You cannot avail the interest subsidy under PMAY as it is for first-time homebuyers. If you or any member of your family own a pucca house anywhere in India, you will not get subsidy under PMAY scheme.
My name is darshan bhojani
I have loan on house in tata capital aug-2018 my house loan is on my mother my subsidy is not done yet what i do
Hi Darshan,
You can ask your loan officer about your PMAY application status. Alternatively, you can check your PMAY application status online at PMAY’s official website – https://pmaymis.gov.in/.
If you decide to go with the alternate option, click to view the step-by-step guide to track your PMAY application status online.
The loan of Rs. 6.50 Lacs was sanctioned in May 2018 from DHFL, but it was shifted to BOB later, as the portfolio was sold by DHFL to BOB. The PMAY application was not processed by DHFL. Can, I apply now through BOB ?
Hi Amit,
Since you did not avail the interest subsidy, you can apply for it through Bank of Baroda.
I purchased flat and availed loan of Rs.35 lakhs from tata capital housing finance co. And got flat registered in July 2019 and applied for PMAY . But tata has still not processed my application. Can I shift to another bank and apply again for PMAY subsidiary.?
Hi Atul,
I would suggest you confirm the progress of your PMAY application with your lender. If they still haven’t processed your PMAY application, ask them for the reason and how soon can they process it.
Also, before opting for home loan balance transfer facility, ask your prospective lender if they provide PMAY subsidy on refinancing loans. Moreover, I would recommend you to go for a balance transfer only when you are getting the loan at lower rates. If your current lender says that you’re not eligible for PMAY, then you might want to consider a home loan balance transfer option to reduce the burden of a high Equated Monthly Installment (EMI) and enjoy a low-interest rate.
For a better understanding, click to know when you should go for a home loan balance transfer.