PMAY: Pradhan Mantri Awas Yojana is a mission started by India Government, with an objective, to provide housing needs to everybody by 2022. The government wants to provide pucca house to every citizen. The whole mission is defined to be implemented from 2015 to 2022. This mission will assist urban local bodies (UBLs) and other implementing agencies under the mission through state/UTs. The major aspects of the mission are
- Credit linked subsidy scheme
- Affordable housing in Partnership
- Subsidy for Beneficiary-led individual house construction or enhancement
- In-situ rehabilitation of the slums with the help of private participation.
The credit link subsidy scheme (CLSS) launched under PMAY mission aims to make buying homes easier and cheaper.
This scheme offers subsidized home loan interest rates based on different category formed as per household income. 4 categories has been formed to benefit under this scheme.
- EWS: Economically weaker section: up to 3 lacs
- LIG: Low-Income group: 3 lacs to 6 lacs
- MIG -1: Middle Income Group – 1: 6 lacs to 12 lacs
- MIG -2: Middle Income Group -2: 12 lacs to 18 lacs
The above categories have been formed based on household income.
To be benefitted under PMAY, there are certain home loan subsidy eligibility criteria to be met by the applicant.
- The applicant must not own a pucca house anywhere in the country.
- Female ownership is compulsory. The house should be in the name of female or joint ownership with a female. For the existing house, the house could be on the name of a male member.
- The family income of EWS should not be higher than 3 lacs, of LIG should not be higher than 6 lacs, of MIG-1 should not be higher than 12 lacs, and of MIG-2 should not be higher than 18 lacs.
- The loan should be only for construction/purchase or repairing/restoration of a house in any particular urban cities which comes under PMAY.
- To avail this scheme, the applicant must have a valid Aadhar card.
Those who meet the above Pradhan Mantri Awas Yojana urban eligibility can apply for loans under PMAY-CLSS. The lender could be any bank; once the applicant is approved to be benefitted under this scheme, the said amount of interest subsidy is transferred to her/his loan.
Any account holder who availed a home loan and bought/constructed/reconstructed after 25th June 2015, coming under LIS/EWS can apply for interest subsidy under the scheme. The maximum loan amount eligible for the subsidy is 6 lacs for both the categories and the interest subsidy rate is 6.5%. The applicant needs to satisfy home loan subsidy eligibility criteria.
Similarly, any applicant who took a home loan and belongs to the MIG category, and has bought/constructed/reconstructed after 1st January 2017 can apply for interest subsidy.
The maximum amount eligible is 9 lacs for MIG-1 and 12 lacs for MIG-2. The interest subsidy rate is 4% and 3% for the two categories respectively.
To apply for a loan, you can contact your lending institute or can directly apply through the website given that you meet the Pradhan Mantri Awas yojana urban eligibility.