In 2015, the Government of India launched a scheme to help the financially deprived population living in urban areas to get a roof over their heads – known as the Pradhan Mantri Awas Yojana. The PMAY Scheme envisages ‘affordable housing for all’ by providing borrowers with the financial resources they need to buy a home through an interest rate subsidy.
Credit Linked Subsidy Scheme (CLSS) is a component of PMAY for Lower Income Group/Economically Weaker Section (EWS/LIG) and Middle Income Group (MIG -I & II). Under this scheme, not only the economically weaker sections but also middle-income groups can avail home loans at reduced EMIs.
Two central nodal agencies such as the National Housing Bank (NHB) and Housing & Urban Development Corporation (HUDCO) channelize the interest subsidy. The apex government bodies channel subsidies to the lending institutions and help the eligible applicants to avail subsidy.
At Shubham, our goal is that everyone should have their own home. We help you to fulfill your dream through the Pradhan Mantri Awas Yojna-Credit Linked Subsidy Scheme (PMAY- CLSS). We help beneficiaries to avail this subsidy across the country. Shubham Housing Development Finance Co. is an authorized lender that follows CLSS subsidy. An applicant can take advantage of a maximum interest subsidy of up to Rs. 2.67 lakhs. Central government offers interest subsidy that is credited to the account of the qualifying beneficiary.
Eventually, a beneficiary earning subsidy from Rs. 2.67 lakhs on a loan sum of Rs. 20 lakhs for a tenure of 20 years at an interest rate of 11% receive a home loan at an efficient rate of 8.79%.
Credit Linked Subsidy Scheme
Credit Linked Subsidy Scheme (CLSS) is an aspect of PMAY under which not only the economically weaker sections but also the middle-income groups can avail home loans at reduced EMIs.
EWS and LIG families with an annual household income of up to Rs. 6 lakh are eligible for subsidy under this scheme. The subsidy is credited upfront to the beneficiary’s loan account, leading to a reduction in significant housing loans and EMI.
Features of CLSS
● The maximum subsidy one can avail Rs. 2.67 lakhs
● Interest subsidy at 6.5 per cent * for a tenure of 20 years.
● Aadhaar card is mandatory for this scheme.
MIG (Middle Income Groups)
The central government launched an interest subsidy on housing loans for MIG households. Applicants with an annual household income between Rs. 612 lakh in urban areas fall into category MIG 1, and those with annual household income between Rs. 12-18 lakh fall into category MIG 2.
Features of PMAY
● Interest subsidy at 4% * on home loans up to Rs.9 lakh for a tenure of 20 years for (MIG-I)
● Interest subsidy at a rate of 3%* on home loans up to Rs.12 lakh for a tenure of 20 years (MIG-II)
● Maximum interest subsidy up to Rs 2.35 lakh*
● The subsidy is credited upfront to the beneficiary’s loan account resulting in reduced housing loans and EMI
● Aadhaar card is mandatory
How to avail CLSS subsidy scheme?
Pradhan Mantri Awas Yojana has been brought into action to make sure you become a homeowner on simple, flexible terms. Talk to our representative about your plan to avail a loan under the PMAY Home Loan scheme. We will hand you the application for loan subsidy, which you must fill out and submit along with the related documents. The balance of the housing loan will be disbursed to your bank account upon checking. After that, we (the lender) shall approach the nodal agencies to begin the process of transferring the subsidy to your bank account that you are entitled to.
How are PMAY beneficiaries identified and selected?
The Pradhan Mantri Awas Yojana (PMAY) scheme primarily addresses the housing needs of the rural and urban poor. This involves slum dwellers in confined areas with limited facilities, inadequate sanitation and lack of safe drinking water.
Beneficiaries are of 3 different types, i.e.
1. Middle Income Groups (MIGs)
2. Low-Income Groups (LIGs)
3. Economically Weaker Section (EWS)
The annual income for members of the EWS group is fixed at Rs. 3 lakh, but for MIG it can increase to Rs.18 lakhs.
Beneficiaries under EWS category are eligible to obtain complete assistance under PMAY while LIG and MIG category beneficiaries are qualified only for the Credit-Related Subsidy Scheme.
How to apply for Pradhan Mantri Awas Yojana (PMAY) online?
Using the online application form is the easiest way to apply for the PMAY as it is convenient and saves time. Ensure that your bank account, household income and Aadhaar information are handy when making the request. This can save a vast amount of time.
Steps to apply for Pradhan Mantri Awas Yojana (PMAY) online
Start your PMAY journey by visiting the official website of the PMAY as under:
1. Go to the official PMAY website
2. Select whether you belong to EWS / LIGH / MIG or slum dweller category from the Citizen
3. Provide your Aadhaar card number, which will redirect to the application page
4. Fill your details, income, residential address and bank account details in the application page
5. After filling the required fields, fill in the captcha code and click on ‘Submit.’
6. Now, you will see a system generated application number which you must save for future
reference and print the duly-filled application form
This initiative by the government is playing a pivotal role in increasing the demand for housing
in the affordable segment, encouraging more people to fulfill their aspirations of buying a home.
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