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
Hello
I’m Kuldeep I avail home loan from Aavas finence in Feb 2016 for my first flat,later applied for pm Ava’s subsidy through lender,but it’s rejectd.why? I could not get written answer,but worbly guy of lander bank said it was a bank mistak about giving patta detail,
1-Can I say for reapply for the same
2- if I change my lander by balance transfer will I be still eligible for pm subsidy scheme?
Because still I didn’t get any subsidy
Hi Kuldeep,
For your first question, please discuss this with your lender if you can reapply for the same.
For your second question, before opting for home loan balance transfer facility, discuss your case with your prospective lender and ask if, despite being rejected once, you are eligible to apply for PMAY once again and avail the subsidy.
We have purchased a property on .January 2019 in the mother’s name via SBI HOME LOAN . N this is 1st property on mother’s name also eligible for PMAY. Bt we haven’t applied for PMAY… Plz tell me that can we still eligible to apply for PMAY?
Hi Vikram,
Yes, you can apply for PMAY, provided your mother or any other member of the family does not own a pucca house.
I took my first home loan through DHFL and later transferred the loan to HDFC due to issues with DHFL.
Initial loan sanctioned in 20.01.2017 (through DHFL). Due to various reasons, DHFL not processed my PMAY subsidy and now HDFC is not accept to process PMAY.
In this regard, how to move forward and can I eligible for PMAY subsidy under Balance transfer loan category
Hi Murali,
I would suggest you express your grievance through your lender’s grievance redressal system mentioned on its website.
I had taken my 1st property in 2018 by home loan from GIC housing finance Ltd but I had not received any subsidy, can I apply now it now for this?
Hi Hemlata,
Not receiving PMAY subsidy after applying for it could be due to several reasons. Maybe your PMAY application is not processed or you are not eligible for the same. To clear things out, I would advise you to first discuss with your lender as to why you did not receive the subsidy and then accordingly go on about resolving the issue if any.
What is maximum time duration of subsidy amount credit in loan account after disbursement of loan.
Hi Ajay,
It usually takes 3-6 months to receive subsidy amount, however, it may vary from one case to another. You can also ask your bank to provide the required information.