What is Pradhan Mantri Awas Yojana (PMAY)?

The Pradhan Mantri Awas Yojana (PMAY) Credit Linked Subsidy Scheme (CLSS) - ‘Housing for All’ is a home loan scheme launched by our honourable Prime Minister Shri Narendra Modi. The scheme envisions 'Housing for All' by the year 2022. It benefits people belonging to the Economically Weaker Section (EWS), Low Income Group (LIG), Middle Income Group-I (MIG-I), and Middle Income Group-II (MIG-II) of society. Beneficiaries availing this scheme are eligible to avail interest subsidy on the purchase or construction of a house or the enhancement of dwelling unit.

Eligibility

·  * People belonging to the Economically Weaker Section (EWS), Low Income Group (LIG),Middle Income Group-I (MIG-I) and Middle Income Group-II (MIG-II) are eligible for this scheme

·    * Age of the applicant must be 70 years or less

·   * Income range of the applicant must be below Rs. 3 lakhs per annum for economically weaker sections and between Rs. 3 - 6 lakhs per annum for lower income groups

·     * Women who are citizens of India are eligible

Beneficiary

·    * They must meet the income requirement of the scheme.

·   * The beneficiary family should not already own a ‘pucca’ house anywhere in India under their own name.

·   * The beneficiary family should not have already availed any other central assistance under any housing scheme from the Government of India or benefit under any scheme in Pradhan Mantri Awas Yojana (PMAY).

·   * The beneficiary family shall comprise of husband, wife and unmarried children. However, under the MIG category, an adult earning member irrespective of his/her marital status can also be treated as a separate household.

·   * For married couples, either spouse or both of them together in joint ownership can be eligible for a single subsidy.

·    * Exception: An adult earning member (irrespective of marital status) can be treated as a separate household – which means a bachelor availing a loan can also avail subsidy if he/she is buying property in his/her name.

Coverage

All Statutory Towns as per Census 2011 and towns notified subsequently will be eligible for coverage under the Scheme.

How to apply

The borrower can apply for the Housing Loans and CLSS subsidy through the PLIs (Prime Lending Institutions). Financial Institutions will perform due diligence and check the fulfilment of the eligibility criteria for the scheme. If the required criteria are satisfied, Financial Institutions will submit the borrowers claim to Central Nodal Agency (CNA). The CNA processes the claim and releases the subsidy amount through Financial Institutions. Financial Institutions thereafter, adjust the same by crediting to the borrower’s Loan account resulting in reduced loan outstanding and the effective EMI.

Key Features

·   * Interest subsidy of 6.50%* p.a. up to a loan amount of ₹6 lakh for 20 years or the actual term, whichever is lower, credited upfront

·    * Actual subsidy amount credited is as approved by the National Housing Bank (NHB)

·    * Family means husband/wife/unmarried children

·   * Applicable for customers who are purchasing/constructing their first home. The beneficiary family should not own any other house in their name.

·    * The carpet area should not exceed 30 sq. mt. for EWS (annual household income up to Rs. 3 lakh PA), 60 sq. mt. for LIG (annual household income between Rs. 3 lakh to Rs. 6 lakh PA), 120 sq. mt. for MIG-I (annual household income between Rs. 6 lakh to Rs. 12 lakh PA), and 150 sq. mt. for MIG-II (annual household income between Rs. 12 lakh to Rs. 18 lakh PA)

·    * The construction/extension must be completed within 36 months

·    * A woman has to be owner/co-owner of the property

·    

Annual Household Income (Rs.)	Categories	Interest Subsidy (%)	Subsidy Calculated on Max. Loan of (Rs.)	Max. Interest Subsidy of	Max. Carpet Area of the Property
Upto 3 lakh	EWS	6.50%	6,00,000	2.67 lakh	No Limit **
3 lakh to 6 lakh	LIG	6.50%	6,00,000	2.67 lakh	No Limit **
6 lak to 12 lakh	MIG-1	4.00%	9,00,000	2.35 lakh	1291 sq. ft.
12 lakh to 18 lakh	MIG-2	3.00%	12,00,000	2.30 lakh	1614 sq. ft.

      Benefits

     The Subsidy once released will be directly credited to the borrower’s account and adjusted against the principal loan amount of the borrower. Hence the outstanding principal of loan will get reduced, resulting in reduced Equated Monthly Installment (EMI).