We all have the aspirations of owning a home. A home is the ultimate financial security one can have.  But with the skyrocketing real estate prices, it is difficult for  some sections of the society of owning a home.

Thus the government of India announced a scheme known as “Pradhan Mantri Awas Yojana” in making the aspirations of the weaker sections of the society come true. A scheme that will help them to fulfill home buying dreams through interest subsidies.

The Pradhan Mantri Awas Yojana (PMAY) is the government of India’s flagship housing scheme that was launched in June 2015 to provide affordable housing to individuals falling under LIG and MIG.

With a mission of “Housing for All” in urban areas by the year 2022, the government provides a credit-linked subsidy to first-time homeowners on interest rates on their home loans. Contributing about 1 lakh to 2.6 lakh for each home falling under the different vertical scheme.

Additionally, the government announced that the GST rate applicable on home loans would be reduced from 12% to 8% for those who apply for the loan under the Pradhan Mantri Awas Yojana schemes. This will give a significant boost to urban home investors.

At Shubham, our goal is that everyone should have their own home. We help you to fulfill your dream through the Pradhan Mantri Awas Yojana – Credit Linked Subsidy Scheme (PMAY- CLSS).

What is PMAY CLSS (Credit Linked Subsidy Scheme)
PMAY Home Loan

Credit Linked Subsidy Scheme is one of the components of the PMAY, where the central government offers interest concessions to the following categories of people.

Eligibility Criteria

The government has taken great care to ensure that members of all sections of the society can become homeowners through the PMAY home loan subsidy scheme.

Income Group

Annual Income

Maximum Eligible Loan Amount

EWS – Economically Weaker Section

Upto Rs. 3 Lakh

Rs. 6 Lakh

LIG – Light Income Group

Rs. 3 to 6 Lakh

Rs. 6 Lakh

MIG1 – Medium Income Group

Rs. 6 to 12 Lakh

Rs. 9 Lakh

MIG2 – Medium Income Group

Rs. 12 to 18 Lakh

Rs. 12 Lakh

Maximum interest subsidy-eligible amount ranges from Rs. 2.30 Lakh to Rs. 2.67 Lakh.

Shubham Housing Finance provides affordable housing benefits under the PMAY Home Loans scheme. Read on to know the benefits:
1. Homes are provided at subsidized interest rates

The primary benefit of the PMAY scheme is the subsidy offered by the government on acquiring a new house. However, the government provides a credit linked subsidy scheme depending on your income, ranging from EWS/LIG to MIG 1 & MIG 2.

This scheme is given as upfront relief, in the form of a reduction in the overall loan liability. The government also envisages building affordable “Pucca” houses with water facilities, sanitation, and electricity supply round the clock.

Thus Shubham Housing Development Finance supports and empowers all first home buyers with a subsidy of up to 2.67 lakhs to the eligible or who falls under the category of (EWS, LIG, MIG 1 and MIG 2) to own and build a house for their family at lower interest rates.

2. It promotes housing for all sections of society

According to the PMAY scheme, the government seeks to construct two crore affordable houses across urban areas. The construction of these affordable homes has already commenced in states such as Maharashtra, West Bengal, Tamil Nadu, etc.

3. It provides housing for all

The PMAY Home Loan scheme is not only regulated to the urban areas; it is also accessible in the rural areas. The scheme benefits the development in the rural real estate sector and lower and mid-income segment. Also, the government of India aims to raise the standard of living for low-income group individuals and eradicate poverty through this scheme.

4. It secures the future of the women

Another advantage of PMAY is that it encourages women to apply for loans and become homeowners. As per the scheme, if a married man is applying for the loan, he has to mandatorily register the house in the woman’s name even in cases when she is not buying the property.

5. Houses will be constructed using sustainable and eco-friendly technologies

All homes built under the PMAY scheme should be built under RERA (Real Estate Regulatory Authority) guidelines. This means the developers and builders are obligated to use eco-friendly construction material and technology. 

The aim is to ensure minimum damage to the environment and in case of discrepancies in construction, the builder is obligated to complete the repairs for free within one month.

Pradhan Mantri Awas Yojana takes a massive stride to help fulfill your aspiration of owning a home. Once you know you are eligible, you can avail a home loan from Shubham Housing Development Finance Company to finance the purchase of your first house and reduce your EMI burden with the help of PMAY.

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