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.
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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.
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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.
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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:
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- 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.
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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.
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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 |
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90 Comments
Is interest rate for pmawas is different i am planning to take loan form lichfl they are saying normal rates are 7 per and if take pmawas then its 8.5 pls clearify.
Also can we preclosure the loan if we have take pmawas yojna on my loan.
Hi Ankur,
Your lender can answer your first question better.
And for your second question, there is no restriction on the closure of home loan if PMAY subsidy is availed. Also, as per RBI guidelines, there will not be any pre-closure charges.
Hi,
I am falling under LIG.
Is it necessary to have wife as co-applicant for loan to avail PMAY subsidy?
My clss application ID generated in feb 2020.but next step (due diligence by pli) not show in this time. Approx 5months passed. Which authority is responsible for this and what I can do to start next step.
Hi Ashish,
In case of a grievance, you should first approach your lender through its grievance redressal system mentioned on its website.
Hi ,
We had taken loan from LIC HFL last year and it’s our first home loan(pucca house) but at that time they assigned it under Gurh Prakash scheme insteam of PMAY. So when I checked with them now they are saying your loan is already under gurh prakash. Could you please tell me how can I tranfer it under PMAY. I have all eligibility (income and house owner , pucca house).
Hi Suresh,
Please discuss this with your lender. Express your grievance through your lender’s grievance redressal system mentioned on its website.
Hi, I am Dhiren.
My home loan disbursed on 28/12/16. Am I eligible for subsidy in category MIG?
Please reply.
Thanks
Hi Dhiren,
No, you are not eligible for PMAY subsidy. To claim the interest subsidy under the MIG 1 & 2 income groups, your loan should be approved on/or after 1-1-2017.