The Pradhan Mantri Awas Yojana is an initiative that was introduced by Prime Minister Narendra Modi in the year 2015. Through this scheme, the Government of India aims to provide affordable housing to the urban poor population in India by 2022. Under the tagline “Housing for all”, this scheme focuses on slum rehabilitation, Credit Linked Subsidy Scheme (CLSS), making housing affordable for all, and offer a subsidy for survey-led independent house construction or renovation.
Pradhan Mantri Awas Yojana (PMAY)
Among the four focus areas mentioned above, CLSS is the only scheme that will be implemented as a central sector scheme. The remaining schemes will be implemented as sponsored schemes. Through the Credit Linked Subsidy Scheme, the Government of India aims at increasing the credit flow in institutions to meet the housing needs of the urban poor population in our country.
Credit Linked Subsidy Scheme will be implemented by two central nodal agencies in India, namely Housing Urban Development Corp and National Housing Bank. Apart from pumping the credit flow required to meet the housing needs, this scheme will also focus on the demand aspects of affordable housing finance segment.
The benefits under the CLSS can be availed by Economically Weaker Sections or Low Income Groups who are looking for housing loans from financial institutions and banks that are participating in the Pradhan Mantri Awas Yojana Scheme. Borrowers can Credit Linked Subsidy for new construction or for adding a room to their existing house.
The houses that are constructed or acquired by taking the benefits under the Pradhan Mantri Awas Yojana scheme will have to be registered in the name of the female head of the household. The beneficiaries have an option to register it jointly in the name of the male and female head of the family. In special cases where is not no female head in the family, the house can be in the name of a male head of the family.
Also, this has to be the first house owned by the beneficiary. The beneficiary family should not own a pucca house in his/her or in the name of any member of his/her family in any part of India.
The prime objective of the Pradhan Mantri Awas Yojana - Credit Linked Subsidy Scheme is to help the urban poor population by increasing the institutional credit flow to meet their housing needs. Economically Weaker Sections and Low Income Groups who are seeking for housing loans from financial institutions and banks will be eligible for an interest subsidy of 6.5% for a period of 20 years or for the tenure of the loans, whichever is lower. This interest rate subsidy will be credited during the initial stage of the loan to the beneficiary’s loan account through the lending institute which will lower their Equated Monthly Installments (EMIs) from the beginning itself.
The funds borrowed by Economically Weaker Sections can be used to construct a new house or to add a room, kitchen, or balcony to their existing house. The beneficiaries under Economically Weaker Sections can have annual income up to Rs.3 lakh. Also, beneficiaries with an annual income of Rs.3 lakh to Rs.6 lakh fall under the Low Income Group category.
The carpet area for Economically Weaker Sections can go up to 30 square metres and the carpet area for Lower Income Groups can go up to 60 square metres. Also, when it comes to EWS and LIG, preference will be given to women, Scheduled Tribes, Scheduled Castes, backward classes, minorities, people with disabilities, and transgenders.
|Annual Income||Up to Rs.3 lakh||Rs.3 lakh to Rs.6 lakh|
|Maximum Loan Tenure||20 years||20 years|
|Revised Carpet Area||30 square metres||60 square metres|
Under the Middle Income Group, there are two sets of beneficiaries. The first set MIG-I covers people with an annual income of Rs.6 lakh to Rs.12 lakh p.a. The second set called MIG-II covers people who fall in the income group of Rs.12 lakh to Rs.18 lakh p.a. An Interest rate subsidy of 4% and 3% will be given to those who fall under MIG-I and MIG-II respectively. For both sets of beneficiaries, the maximum tenure of loan can go up to 20 years. The maximum loan amount can go up to Rs.9 lakh for MIG-I and Rs.12 lakh for MIG-II. Also, the discount rate for Net Present Value(NPV) is 9% for both MIG-I and MIG-II.
When CLSS was introduced, the carpet area was set at 90 square metres for MIG-I and 110 square metres for MIG-II. Recently, the Cabinet increased the carpet area from 90 square metres (968.752 sq ft) to 120 square metres (1291.668 sq ft.) for MIG-I. The carpet area for MIG-II was also increased to 150 square metres (1614.585 sq ft) which were 110 square metres (1184.03 sq ft) previously.
|Annual Income||Rs.6 lakh to Rs.12 lakh||Rs.12 lakh to Rs.18 lakh|
|Maximum Loan Tenure||20 years||20 years|
|Housing Loan Amount Eligible For Interest Subsidy||Up to Rs.9 lakh||Up to Rs.12 lakh|
|Revised Carpet Area||120 square metres||150 square metres|
You can call the CLSS toll-free helpline numbers for any enquiries or concerns regarding CLSS.
The CLSS toll-free number for Housing and Development Corporation (HUDCO) is 1800116163.
The CLSS toll-free numbers for National Housing Bank (NBC) are 1800113377 and 1800113388.
No, there is no loan limit, though the loan subsidy is limited to Rs.6 lakh only.
The interest rate for the Pradhan Mantri Awas Yojana - Credit Linked Subsidy Scheme is fixed at 6.5% for a period of 15 years.
Yes, all banks listed under the RBI offer the Credit Linked Subsidy.
A beneficiary family not owning a house in any part of the India is eligible for this subsidy subject to income criteria.
No. The interest subsidy offered under the Credit Linked Subsidy Scheme is not applicable to houses in rural areas in India.
Yes. A beneficiary can choose a loan term more than 20 years provided the lender agrees.
No. There is no limit on the cost of the property but the subsidy will be limited to the loan amount defined against each category and additional amount will be at non- subsidized rate of interest.
Yes. A Non-Resident Indian can avail subsidy under the Credit Linked Subsidy Scheme.
No. A self-declaration form signed by the beneficiary that he/she does not own any pucca house is sufficient.
In that case, the subsidy will be recovered and the lender will refund it to the Central Government of India.
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