Pradhan Mantri Awas Yojana (PMAY) is an initiative implemented by the Government of India with the intention of providing affordable housing to the urban and rural poor of the country. PMAY aims at building over 20 million houses by March 2022. Under this scheme, the government provides a subsidy on home loan interest rates for eligible individuals. This is also referred to as Credit Linked Subsidy Scheme (CLSS). CLSS provides a interest subsidy to individuals that belong to three groups, namely, Economically Weaker Section (EWS), Lower Income Group (LIG), and MIG (Middle Income Group)
|Criteria||MIG – I||MIG – II||EWS & LIG|
|Maximum household income p.a.||Rs.6 lakh – Rs.12 lakh||Rs.12 lakh – Rs.18 lakh||Up to Rs.6 lakh|
|Maximum carpet area||120 square meters||150 square meters||No restriction|
|Maximum loan amount eligible for the subsidy||Rs.9 lakh||Rs.12 lakh||Rs.6 lakh|
|Maximum tenure||20 years||20 years||20 years|
|Interest subsidy p.a.||4%||3%||6.50%|
|Maximum subsidy amount||Rs.2.35 lakh||Rs.2.30 lakh||Rs.2.67 lakh|
|Mandatory woman ownership||Not mandatory||Not mandatory||Mandatory|
A credit linked subsidy scheme calculator will not only determine if your household is eligible for an interest subsidy, but will also give you detailed information about the loan. By entering basic details of the loan, such as loan tenure, loan amount, and household income, the calculator will point out the maximum loan amount that is eligible for the interest subsidy, the total interest that needs to be paid throughout the tenure of the loan, the maximum carpet area eligible for the loan, etc.
The beneficiary family should not own a house in any part of the country. However, the family must also meet the criteria mentioned in the table above.
A beneficiary family comprises of a wife, husband, and unmarried children. An adult earning member who is a part of the family, irrespective of marital status, can be considered to be a separate household.
As of today, properties in rural areas are not covered under the PMAY scheme.
In the case that the beneficiary belongs to EWS or LIG category, a woman has to own or co-own the property in order to avail the scheme. However, if the beneficiary belongs to the MIG category, it is not mandatory for a woman to own or co-own the property.
After the housing loan is disbursed, Axis Bank would reach out to NHB (National Housing Bank) to claim subsidy for eligible borrowers. After NHB approves this, the subsidy would be calculated and will be credited to the respective loan account.
In this case, the subsidy will be retrieved from the loan account and refunded to the Government.
Although it is possible to obtain a home loan for a tenure beyond 20 years, a beneficiary can avail the interest subsidy only to a maximum of 20 years.
Although there is virtually no limit on the loan amount that can be availed, the interest subsidy will only be provided for a capped loan amount, depending on the category the beneficiary belongs to.
A beneficiary can apply for CLSS by visiting any of the Axis Bank branches across the nation.
You would require the same documents as you would for a regular home loan.
Yes, NRIs who meet the eligibility criteria are also eligible to avail this scheme.
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