With an objective to provide affordable houses to marginalized families across the country, the Indian Government launched the Pradhan Mantri Awas Yojana (PMAY) in the year 2015. Under the PMAY scheme, the government has proposed to construct 2 crore houses in different parts of the country. Moreover, in order to have the pollution under control, the houses under the PMAY scheme will be constructed by using eco-friendly construction method. The PMAY scheme will certainly help in decreasing the issue of homelessness faced by millions of citizens across the country.
To help more people realize their dream of owning a property, the Government has introduced the Credit Linked Subsidy Scheme (CLSS) under the Pradhan Mantri Awas Yojana (PMAY).
This PMAY Credit Linked Subsidy Scheme can also be called as the interest subsidy scheme. This CLSS scheme is focused to provide subsidy on home loan interest rate for people who belong to the Economical Weaker Section (EWS), Lower Income Group (LIG) and Middle Income Group (MIG). It is essential for the beneficiaries to check their eligibility before claiming the PMAY subsidy. They may have to face claim rejection if they don’t satisfy the eligibility criteria:
How is PMAY Subsidy Credited?
CLSS scheme under Pradhan Mantri Awas Yojana (PMAY) makes your home loan affordable as the subsidy provided on the interest brings down the outflow of your home loan amount. The subsidy amount under the PMAY scheme largely depends on the category of the income you belong to and the size of the property unit being financed. The interest subsidy gets credited to your loan account through the bank resulting in reduced effective housing loan and Equated Monthly Installment (EMI).
What Happens If PMAY Subsidy Is Not Received?
At times there is a possibility that banks will not approve your subsidy under PMAY, so first ascertain the reason why the subsidy is not being passed on to you. If the reason is valid and justified and if you do not fit in the set criteria for being eligible, then the bank has the right to refuse to pass on the subsidy. But if the bank refuses to let you know the reason and deny a proper closure for the same, then in that case you can lodge the complaint with the Central Nodal Agency i,e National Housing Bank. Also, you can file a complaint to the Housing Ministry at Central govt level and State Govt Number and contact through the helpline number provided on the website of Ministry and Central Nodal agency.
Possible Points for Claim Rejection
- The applicant already has a house registered under his/her own name or under the name of any family members.
- Any family member of the applicant has already availed central assistance from the Government of India under any housing scheme
- In the case of married couples, either the spouse or both together in joint ownership will qualify for a single subsidy. Therefore, if one of them has already availed the home loan subsidy, it might lead to claim rejection for the partner.
- Credit linked subsidy is only applicable for housing loans used for new construction or for the expansion of an already existing property. For any other purpose, the applicant may have to bear claim rejection.
It is necessary to keep all these factors in mind while applying for a PMAY subsidy. This will help the applicants in avoiding claim rejection.
The amount of subsidy that can be availed by a beneficiary depends upon his/her income group. Let’s have a look at the Credit-Linked Subsidy Scheme (CLSS) for EWS, LIG and MIG categories:
CLSS for LIG (Lower Income Group) and EWS (Economically Weaker Section)
|Category||Lower Income Group||Economically Weaker Section|
|Annual household income||Between Rs. 3 Lakhs – Rs. 6 Lakhs||Rs. 3 Lakhs|
|Carpet area of the dwelling unit||60 Sq. Mtr.||30 Sq. Mtr.|
|Rate of interest subsidy||6.50%||6.50%|
|Maximum loan amount||Rs. 6 Lakhs||Rs. 6 Lakhs|
|Maximum loan tenure||20 yrs||20 yrs|
CLSS for MIG (Middle Income Group)
|Category||Middle Income Group- 1||Middle Income Group-2|
|Annual household income||Between Rs. 6 Lakhs – Rs. 12 Lakhs||Between Rs. 12 Lakhs – Rs. 18 Lakhs|
|Carpet area of the dwelling unit||160 Sq. Mtr.||200 Sq. Mtr.|
|Rate of interest subsidy||4%||3%|
|Maximum loan amount||Rs. 9 Lakhs||Rs. 12 Lakhs|
|Maximum loan tenure||20 yrs||20 yrs|
It is recommended that beneficiaries under the PMAY scheme should avail a home loan after comparing various loan offers provided by different financial institutions. This will help them avail a home loan that best suits their needs.
Moreover, it is also advisable to calculate the home loan EMI beforehand with the help of an online housing loan EMI calculator. This can help the borrowers plan their monthly budget wisely and make timely repayment on their home loan.
Can I Get PMAY Subsidy On Resale Flat?
The Pradhan Mantri Awas Yojana scheme comes to aid for the lower economic group of society. Also, under the Credit Linked Subsidy Scheme, beneficiaries under the PMAY scheme are eligible for interest subsidy if they avail a housing loan to purchase or construct a house. Also, you are eligible to get the benefits of PMAY subsidy for a resale flat. Provided you don’t have any home under your name and comes under other eligibility criteria mentioned in Pradhan Mantri Awas Yojana. It will take more than 6 months followed by a regular follow up with the Bank regarding the subsidy.
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Read more about Government Housing Schemes
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