Check out PMAY Home Loan Subsidy

How to Avail Home Loan Subsidy under PMAY?

Check out PMAY Home Loan Subsidy

✓ Home Loan from ₹5 Lakhs To ₹5 Cr ✓ Multiple Lending Partners ✓ Attractive Interest Rates

The Credit-Linked Subsidy Scheme (CLSS) under the Pradhan Mantri Awas Yojana (PMAY) is a government scheme launched to make housing accessible to members of the following economic groups:

  • Economically Weaker Section (EWS)

  • Low Income Group (LIG)

  • Middle-Income Group 1 (MIG-I)

  • Middle-Income Group 2 (MIG-II)

The scheme offers a sizable subsidy on the total interest payable on a home loan on the basis of the borrower’s household income. The benefits of the same can be availed on the purchase of a new/resale house or on construction as well. The benefits of the PMAY scheme can also be availed if the borrower is simply upgrading their home into a house that has been made with solid, all-weather-resistant materials. In order to avail the PMAY CLSS subsidy, you must ensure that you are eligible for it.

The PMAY scheme is currently underway in two key components:

  1. Pradhan Mantri Awas Yojana- Urban (PMAY- U): The PMAY-U focuses on eliminating the increasing slum habitations in cities, along with dealing with the issues of space crunch due to increased migration.

  2. Pradhan Mantri Awas Yojana – Gramin (PMAY-G): The PMAY-G primarily aims to provide houses for the rural people who still live in makeshift or ‘kaccha’ houses.

This article will take you through the ways in which you can avail the subsidy offered to the PMAY beneficiaries. Read on to know more.

How to Get a Home Loan Subsidy under the Pradhan Mantri Awas Yojana?

You can get a home loan subsidy under the PMAY scheme through the following steps-

1. Check your income threshold: When you are thinking about applying for a PMAY subsidy on your home loan, it is important that you first check whether you fall under the income threshold specified under the scheme (EWS, MIG, or LIG). Depending on your income threshold, the carpet area for your residential property against which you would be availing the PMAY scheme will depend. To check how much benefit you can enjoy on your home loan, you can make use of an online PMAY Subsidy Calculator.

 

2. Fill the PMAY Application Online: You can fill the PMAY application online as well as offline. While offline application filling is a manual process, you can follow the below-mentioned steps for pmay online apply-

  • Step 1: Visit the PMAY official website at https://pmaymis.gov.in

  • Step 2: Click on the ‘Citizen Assessment’ tab and choose the category under which you wish to apply for the scheme

  • Step 3: Submit your Aadhaar Card details to link it with your application (This is mandatory)

  • Step 4: You would be redirected to the application form where you would further need to submit your other personal details

  • Step 5: Click on ‘Save’ to save your PMAY application for further use

3. Proceed with your Loan Application: Once the applicant has filled the PMAY application form (either offline or online), the next step is to visit the bank or NBFC (non-banking financial company) to avail the subsidy facility on the house loan. Along with the PMAY application, the borrower also needs to submit other details such as income proof, investment details, property details, co-applicants details, etc.

PMAY Scheme Basic Eligibility Criteria

  • The PMAY CLSS subsidy is only applicable to home loans.

  • The maximum limit on the loan amount to avail the benefit of this scheme is INR 6 Lakhs.

  • The applicant can avail a maximum subsidy of INR 2.67 Lakhs.

  • The scheme is essentially meant for beneficiary families that include a husband, a wife, and two single children. The adult earning member of a family can be treated as a separate MIG household irrespective of his or her marital status.

  • The beneficiary family should not own a pucca house anywhere in India.

  • If a married couple is jointly applying for the PMAY benefits, they will be eligible for a single subsidy as joint-owners of a pucca home.

  • Only those families that have not been the beneficiaries of any government-run housing schemes in the past can apply for the benefits of the PMAY scheme.

  • Borrowers that have availed home loan balance transfer facilities will not be eligible to claim the benefit again.

  • Families that are applying for PMAY benefits that are given to the members of the MIG category must mandatorily furnish their Aadhaar numbers to avail the subsidy.

PMAY CLSS Scheme Details

Below, you will get to see the kind of monetary benefits that families can avail as beneficiaries of the PMAY CLSS scheme on the basis of their income.

PMAY Features and Benefits Provided to EWS and LIG Families

Particulars

EWS

LIG

Annual eligible household income

Upto ₹3 Lakhs

Between ₹3-₹6 Lakhs

 

Maximum permissible dwelling carpet area

30 square metres

60 square metres

Maximum loan amount on which a subsidy is available

₹6 Lakhs

 

₹6 Lakhs

 

Interest subsidy (in %)

6.50

6.50

Subsidy amount (max.)

₹2,67,280

₹2,67,280

Maximum loan tenure (in years)

20

20

Discount rate to calculate Net Present Value (NPV)

9%

9%

Ownership of women

Mandatory

Mandatory

Scheme Validity

31 March, 2022

31 March, 2022

Applicability

Loans approved on or after 01/01/2017

Loans approved on or after 01/01/2017

Features and Benefits Provided to Beneficiaries Belonging to MIG

Particulars

MIG-I

MIG-II

Annual eligible household income

Between ₹6-12 Lakhs

 

Between ₹12-18 Lakhs

 

Maximum permissible dwelling carpet area

160 square metres

200 square metres

Maximum principal amount on which the subsidy is calculated

Up to ₹9 Lakhs

 

Up to ₹12 Lakhs

 

Subsidy on interest (% p.a.)

4

3

Maximum available subsidy amount

₹2,35,000

₹2,30,000

Scheme Validity

31 March, 2022

31 March, 2022

Applicability

Loans approved on or after January 01, 2017

Loans approved on or after January 01, 2017

Discount rate to calculate Net Present Value (NPV)

9%

9%

Maximum loan tenure (in years)

20

20

Ownership of women

Not mandatory

Not mandatory

Note: The details mentioned in the above tables are as per information revealed by the Centre under the PMAY scheme and are subject to change.

What are the Benefits of the CLSS Scheme?

The advantages of the housing loan subsidy program include:

  • A significant subsidisation of the payable interest on a home loan taken by a PMAY beneficiary.

  • The subsidy amount is directly deposited into the bank account. As a result, your outstanding principal amount as well as your EMI amounts come down by a substantial margin.

  • The loan amount in itself has no upper limit. If the sum, however, goes past the limits that have been indicated, the interest will be charged at the normal rate of the lender.

  • The beneficiary may also be eligible for tax deductions as indicated in the Income Tax Act of 1961.

PMAY Video

PMAY: Pradhan Mantri Awas Yojana Scheme

Your dream of owning a home need not wait!, Pradhan Mantri Awas Yojana (PMAY) along with Finserv MARKETS will make your dream come true And the best part! With PMAY scheme, you can get a significant subsidy on your Home Loan interest amount.

PMAY Home Loan Subsidy FAQs

  • ✔️Do all financial institutions provide a PMAY subsidy?

    The PMAY subsidy can only be availed at banks and NBFCs recognized under the PMAY.

  • ✔️Are there any processing fees for the PMAY application?

    The online application is free. However, when you apply offline, there is a nominal charge of INR 25.

  • ✔️Are Aadhaar Card details mandatory to get a home loan subsidy under PMAY?

    Yes. Submitting your Aadhaar Card details is compulsory to avail the PMAY subsidy.