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Pradhan Mantri Awas Yojana

  • Pradhan Mantri Awas Yojana

  • In order to empower people to get their dream Home, honorable Prime Minister has announced a comprehensive and a progressive mission, 'Pradhan Mantri Awas Yojana – Housing for All' on 17 June, 2015.

  • One of the major verticals of Pradhan Mantri Awas Yojana (PMAY) is Credit Linked Subsidy Scheme (CLSS) for Lower Income Group/Economically Weaker Section (EWS/LIG) and Middle Income Group (MIG – I & II). Under this scheme, the Central government provides financial assistance through lending Institutions to eligible beneficiaries across all statutory towns as per 2011 census and their adjacent planning area (updated by the government from time to time)

  • The interest subsidy is channelized through two central nodal agencies - National Housing Bank (NHB) and Housing & Urban Development Corporation (HUDCO). The apex government bodies channelize subsidy to the lending institutions and they help the eligible applicants to avail subsidy.

  • IIFL Home loans is an approved lender and loan applications which meet eligibility criteria for CLSS subsidy are forwarded to National Housing Bank (NHB) for approval. An applicant can avail maximum interest subsidy of upto Rs 2.67 lacs*. Central government provides interest subsidy which is credited to eligible beneficiary’s loan account. Hence, a beneficiary receiving subsidy of Rs. 2.67 lac* on a loan amount of Rs. 20 lac for 20 years loan tenure, at interest rate of 9.50% actually gets loan a Home loan at an effective rate of 7.53%.

  • ICFS Home Loans have been helping beneficiaries to avail this subsidy across the country.
  • Credit Linked Subsidy Scheme

    • EWS/LIG
    • MIG
  • EWS and LIG households/families, whose annual household income is upto Rs 6 lakh is eligible to avail subsidy under this scheme; The ‘family’ must not own a pucca house in any part of India. Subsidy credited upfront to the loan account of beneficiary resulting in reduced effective housing loan and EMI.
  • Features of CLSS

    • The maximum subsidy up to Rs. 2.67 Lakhs*
    • Interest subsidy at a rate of 6.5%* for a tenure of 20 years or tenure of loan, whichever is lower
    • Subsidy available only for loan amounts upto Rs 6 lakh and additional loans beyond Rs 6 lakh, if any will be at non subsidized rate
    • Aadhar card is mandatory for applying for this scheme

    MIG

  • Central Government introduced interest subsidy on housing loans for MIG households/families, effective from January 1, 2017. Applicants with annual household income between Rs 6-12 lakh in urban areas fall into the MIG 1 category and 12-18 lakh fall under MIG 2 category.
  • Features

    • Interest subsidy at a rate of 4%* on Home loans upto Rs.9 lakh for a tenure of 20 years or tenure of loan, whichever is lower (MIG I)
    • Interest subsidy at a rate of 3%* on Home loans upto Rs.12 lakh for a tenure of 20 years or tenure of loan, whichever is lower (MIG II)
    • Maximum interest subsidy upto Rs 2.35 lakh*
    • Subsidy credited upfront to the loan account of beneficiary resulting in reduced effective housing loan and EMI
    • Aadhar card is mandatory for applying for this scheme

    Pradhan Mantri Awas Yojana Eligibility

  • To avail subsidy under Pradhan Mantri Awas Yojana CLSS scheme, the eligibility criteria are defined for Lower Income Group/Economically Weaker Section (EWS/LIG) and Middle Income Group (MIG – I & II)
  • Pradhan Mantri Awas Yojana Eligibility Criteria

  • EWS/LIG
    • An applicant/family/household should not own a pucca house in any parts of the country either in his name or any of his family member’s name
    • An applicant must not have availed any central/state assistance under any housing scheme from Government of India ever
    • One adult female membership is mandatory in the property ownership
    • Property should be co-owned by a female member of the family
    • Location of the property should fall under all statutory towns as per 2011 census and their adjacent planning area (updated by the government from time to time)
  • *A beneficiary family comprises husband, wife, unmarried sons and/or unmarried daughters.

  • Particular CLSS – EWS/LIG
    Household Income (P.A) Upto 6 Lakhs
    Tenor for calculating subsidy amount 20 Years (earlier 15 years)
    Documentation requirement Aadhar of an applicant, co-applicant, adult household members is a must
    House Upgradation Covered

    Scenario 1

  • In case, a household has an Annual Income of Rs 10 lacs (MIG- 1), the family wants to purchase a house in the name of male member only and does not want the property to be in joint name of female. Is the family eligible for subsidy?

  • Ans) Yes they are eligible because as per the criteria under CLSS for MIG scheme, female ownership is preferred but not mandatory.
  • Scenario 2

  • A female has a house in her own name before marriage. After marriage her husband purchases a house and applies for subsidy benefit. Is he eligible for CLSS?

  • Ans) The household already has a house in the name of wife, hence, would not be eligible for subsidy on purchase of second house.
  • Scenario 3

  • A young boy of 23 years who lives with his parents or goes out to metropolitan city for job, intends to purchase a house. Is he eligible for Credit Subsidy? If Yes why and if no, reasons thereof?

  • Ans) As per definition of household: "An individual earning member (irrespective of its marital status) may be considered as a separate household".

  • Therefore, the above case is eligible for subsidy on Home loan. Infact in such a scenario, female ownership is also not required under EWS/LIG scheme.
  • MIG

    • Applicant must not own a pucca house either in his/her name or in the name of any member of his/her family in any part of India

    • Applicant must not have availed any central/state assistance under any housing scheme from Government of India ever

    • Adult female membership ownership in property is desirable

    • Location of the property should fall under all statutory towns as per 2011 census and or adjacent planning area (updated by government from time to time)
  • *A beneficiary family comprises husband, wife, unmarried sons and/or unmarried daughters. An adult earning member (irrespective of marital status) can be treated as a separate household

  • Particular CLSS - MIG CLSS - MIG II
    Household Income (P.A) 6-12 Lakhs 12-18 Lakhs
    Dwelling Unit Carpet Area Upto 160 Sq mt Upto 200 Sq mt
    Requirement of NOC from State govt Not required Not required
    Tenor for calculating subsidy amount 20 Years 20 Years
    Documentatio n requirement Aadhar of an applicant, co- applicant, adult household members is must Aadhar of an applicant, co- applicant, adult household members is must
    House Upgradation Not Covered Not Covered
  • Here are some scenarios to help you determine which scheme will be applicable to your household:
  • Scenario 1

  • In case, a household has an Annual Income of Rs 10 lacs (MIG- 1), the family wants to purchase a house in the name of male member only and does not want the property to be in joint name of female. Is the family eligible for subsidy?

  • Ans) Yes they are eligible because as per the criteria under CLSS for MIG scheme, female ownership is preferred but not mandatory.
  • Scenario 2

  • A female has a house in her own name before marriage. After marriage her husband purchases a house and applies for subsidy benefit. Is he eligible for CLSS?

  • Ans) The household already has a house in the name of wife, hence, would not be eligible for subsidy on purchase of second house.
  • Scenario 3

  • A young boy of 23 years who lives with his parents or goes out to metropolitan city for job, intends to purchase a house. Is he eligible for Credit Subsidy? If Yes why and if no, reasons thereof?

  • Ans) As per definition of household: "An individual earning member (irrespective of its marital status) may be considered as a separate household".

  • Therefore, the above case is eligible for subsidy on Home loan. Infact in such a scenario, female ownership is also not required under EWS/LIG scheme.