To meet the housing requirements of the citizens, the Ministry of Housing and Urban Poverty Alleviation (MoHUPA) launched a mission, PMAY, which is also known as Housing for all. This mission was launched in 2015 and covered majorly 3 aspects.
- Urban Pradhan Mantri Awas Yojana: The scheme was launched to provide the housing requirements of Slum dwellers, by in-situ slum development using the land as a resource. By providing financial assistance of 1.5 lakhs to dwellers to upgrade their houses and by guiding to construct or restructure existing houses
- Rural Pradhan Mantri Awas Yojana: This scheme was launched to cater to the housing needs of rural people by 2022. The construction of the multi-storeyed buildings and upgrading the kaccha houses to the pucca house through financial assistance and subsidy based interest rates
- CLSS: Credit linked subsidy scheme: This scheme was launched under PMAY mission to provide affordable housing loans to the economically weaker section of society to meet the housing requirements.
To provide benefits under CLSS, society was divided into 4 categories based on household incomes.
- EWS: Economically weaker section: household income less than 3 lacs
- LIG: Lower-income group: household income 3 lacs to 6 lacs
- MIG-1: Middle-income group: household income 6 lacs to 12 lacs
- MIG-2: Middle-income group: household income 12 lacs to 18 lacs.
CLSS is a major aspect of the Pradhan Mantri Awas Yojana which makes getting housing loans cheaper and easier. This scheme has some eligibility criteria
- The applicant’s family should not own a pucca house other than this in any part of the country, and this should be the first pucca house.
- The loan availed should only be utilized for the construction/ redevelopment of the house.
- The beneficiary family should not have availed benefits of any other central assistance housing scheme from the government in the past or any other benefit under PMAY.
- Female ownership/co-ownership is compulsory for EWS and LIG categories. For the existing house, the ownership can be on the name of an adult male member of the family.
- The applicant must have a valid Aadhar card.
The owners of existing properties can also avail the benefits. As per the Pradhan Mantri Awas Yojana details.
Any account holder, belonging to the EWS/LIG category who availed the housing loan on or after 25th June 2015 for the construction/redevelopment of the house can avail benefits. The maximum loan amount eligible for the subsidy is 600000, and the interest subsidy will be 6.5%. The interest subsidy will be a maximum of 2.6 lacs and is valid until 31st March 2022.
If the applicant belongs to the MIG-1 or MIG-2 category, the loan should have been availed on or after 1st January 2017. The maximum loan amount eligible for subsidy is 9 lacs and 12 lacs respectively, with interest subsidy of 4% and 3%. The maximum subsidy will be 2.35 lacs and 2.30 lacs.
The applicant can apply for the subsidy by contacting the lending institution or through the PMAY website directly. Pradhan Mantri Awas Yojana details can be found on the website itself.