• If you want to avail the PMAY subsidy the first thing you need to do is check – if you are eligible for Pradhan Mantri Awas Yojana (PMAY) Credit Linked Subsidy Scheme (CLSS).
  • The benefits under the PMAY scheme differ depending on your income and to which section of the society you belong to.
  • Credit Linked Subsidy Scheme is one of the components of PMAY that provides concessions on the interest on home loans
  • CLSS subsidy is restricted to the stipulated loan limits under each category. 
  • For detailed information visit- https://pmayuclap.gov.in/

What is PMAY?

The Pradhan Mantri Awas Yojana (PMAY) is a government housing scheme launched in 2015. The scheme aims to provide affordable housing for both urban and rural people of the country. The scheme intends to construct 20 million houses by the end of the financial year 2021-22. The scheme is divided into two subcategories-

  • Pradhan Mantri Awas Yojana Urban (PMAY-U): Pradhan Mantri Awas Yojana Urban aims to ensure housing for all in the urban areas of the country. The scheme provides central assistance to implementing agencies through States/Union Territories (UTs) and Central Nodal Agencies (CNAs) for providing houses to all eligible families against the validated demand for houses. The size of a house for the Economically Weaker Section is 30 sq. mt. in carpet area but States have the flexibility to enhance the size of houses.
  • Pradhan Mantri Awas Yojana Gramin (PMAY-G): Through this scheme, the government’s objective is to provide affordable housing to those belonging to the economically weaker section.
  • PMAY aims to provide housing for those who are living in slums with the help of private funding support.
  • Offering credit linked subsidy schemes to encourage individuals to avail of affordable housing.
  • Construction and enhancement of affordable residential properties for eligible individuals.
  • Credit Linked Subsidy Scheme is one of the components of PMAY that provides concessions on the interest on home loans. 

The annual income is the major factor that defines your eligibility to avail of the PMAY subsidy. However, the current thresholds are:

  • Economically Weaker Section ( Lower Income Group )- Annual income between ₹ 3 Lakh and ₹6 Lakh.
  • Middle Income Group I, it includes annual income within ₹ 6 Lakh – ₹ 12 Lakh.
  • Middle Income Group-II, it includes annual income within ₹ 12 Lakh – ₹18 Lakh.

Subsidy which you can avail under MIG I and MIG II

Under the MIG I category, the interest subsidy provided is of 4%

While you can borrow a higher amount of loan based on your eligibility, the maximum amount eligible for interest subsidy under CLSS would be ₹ 9 lakh under the MIG I category.

Under the MIG – II slab category individuals will get a 3 percent subsidy on a loan amount up to ₹ 12 lakh.

If one needs an additional loan, the lender will provide the additional loan amount at the non-subsidized rate.

How does it work?

Assume someone wishes to buy a house costing ₹ 50 lakh on home loan which is @9% per annum. The borrower comes under MIG II, after the downpayment of 20 percent i.e.₹ 10 lakh, the balance of ₹ 40 lakh can be availed from the home loan. 

However, under PMAY, a subsidy of 3 percent is applicable on ₹ 12 lakh of the loan amount. Hence, the lender’s home loan interest rate will apply to the balance of ₹36 lakh.

How to Apply For PMAY Subsidy 

  • Log on to the official Pradhan Mantri Awas Yojana at pmaymis.gov.in
  • Choose the ‘Benefits under other 3 components’ option by clicking the Citizen Assessment.
  • Enter your Aadhaar number and then click on the submit button. 
  • If the information provided is correct, you will be lead to the next page where you will have to provide all the pertinent information regarding your name, income, no. of family members, residential address, contact number, age of the head of the family, religion, caste and the like.
  • Once all the information is provided, scroll down, type the captcha code in the box and then on submit.