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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.
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.
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GST Cut to 8% on CLSS Houses
The council of housing sector has recommended that the GST for homes bought under the CLSS (Credit Linked Subsidy Scheme) for under-construction houses will be reduced to 8%. Previously, the GST for these kind of homes were 12%. However, the people not eligible for home loans under the CLSS scheme will continue to pay a higher GST.
Carpet Area For PMAY Houses Increased For Middle Income Group Beneficiaries
Pradhan Mantri Awas Yojana(PMAY) has been in the headlines for quite some time now. A Union Cabinet which was head by the Prime Minister himself was held recently. In this cabinet meeting, the board has decided to increase the carpet area of the houses being built under the PMAY and those that are eligible for interest subsidy under the Credit Linked Subsidy Scheme (CLSS).
According to a government notification, the increase in carpet area will be applicable only for Middle Income Group people. Under the MIG-I category, the area of the houses has been enhanced "up to 120 square metre" from exiting 90 square metre. For MIG-II category, the area has been increased "up to 150 square metre" from the current 110.
The increase in the carpet size is a big deal because homebuyers can now opt for a spacious house and increased carpet area will help selling flats quicker.
Income Subsidy Scheme for the Middle Income Group extended to March 2019
The interest subsidy benefit on Home Loans of around Rs.2.60 lakh has been extended by the central government to March, 2019. The beneficiaries are from the Middle Income Group (MIG) under the Pradhan Mantri Awas Yojana that was rolled out a couple of years back. This extension has given the beneficiaries an additional 15 months from the earlier stipulated 1-year period that was bound to end this December.
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.
| Particulars | EWS | LIG |
|---|---|---|
| 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 |
| Interest Subsidy | 6.5% | 6.5% |
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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.
| Particulars | MIG-I | MIG-II |
|---|---|---|
| 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 |
| Interest Subsidy | 4% | 3% |
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.
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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.
Corporation authorities of Kerala have decided to popularise the Credit-Linked Subsidy Scheme (CLSS) of the Pradhan Mantri Awas Yojana (PMAY) so that people can realise the dream of owning a home. A special drive will be conducted by the civic body for the collection of details of people who wish to avail the housing scheme under PMAY. Special camps will be conducted for 75 corporation wards from 9 December to 11 December. The camps will be conducted at Tagore centenary hall on 9 December while on 10 and 11 December, camps will be held at Cheruvannur Zonal Office Hall and Elathur Community Hall respectively. Under the PMAY, people with a yearly income of up to Rs.18 lakh can receive subsidy benefits. There are four income categories under which the subsidies can be availed. As per the corporation officials, subsidies of Rs.10.35 crore has been provided to 564 beneficiaries so far.
9 December 2019
Thiruvananthapuram has become the first corporation in the state of Kerala to build 1, 000 houses as part of Pradhan Mantri Awas Yojana (PMAY) scheme, according to a recent report from The New Indian Express. Until now, the scheme has more than 9,027 beneficiaries. This is the first time that a state corporation has successfully completed the ambitious housing project in a short span of time. The completion cost of the scheme is estimated to be Rs.361 crore. At least 1,370 beneficiaries were included in the first DPR, while the second DPR envisages to benefit 1,834 families. The remaining houses will be completed under various DPRs, added the report. The union and state governments is expected to provide Rs.49.47 crore while the corporation will provide Rs.51.3 crore. Until now, a sum of Rs.97.6 crore has been spent to date on the project. The remaining beneficiaries
The district official revealed that the rest of the beneficiaries will be equipped with houses within a year. Other than Rs.4 lakh, the housing project beneficiaries of PMAY- Life scheme will also avail Rs.24,390 as part of inclusion in Ayyankali Urban Employment Guarantee Scheme (AUEGS). The distribution of keys and AUEGS cards will be held in coming days.
29 January 2019
The PMAY scheme that was implemented by the government a few years ago has gained momentum and is fair to say that it has become a success. Recently, the government approver over 3 lakh more houses under the scheme. The total housing units under this scheme after this approval would amount to 51 lakh units. This approval will require a budget of over Rs.8,000 crore.
28 June 2018
The Housing and Urban Affairs (HUA) Ministry has informed that the government has approved a 33% increase in carpet area of houses constructed under its affordable housing scheme called Pradhan Mantri Awas Yojana-Urban (PMAY-U). The move has been made to attract more beneficiaries, the Ministry stated. Following the approval from the government, the carpet area of the house has been enhanced to 160 square metres from the existing 120 square metres for Middle Income Group-I (MIG-I). As for Middle Income Group-II (MIG-II), the carpet area has been increased to 200 square metres from 150 square metres. It was informed that the new rules would be effective from the date when the scheme became operational i.e 1 January 2017.
As part of the PMAY-U scheme, each beneficiary who purchases a house can avail subsidy up to Rs.2.35 lakh under the Credit-Linked Subsidy Scheme (CLSS). In the case of MIG-I, 4% interest subsidy can be availed on loan up to Rs.9 lakh by people who have an annual income in the range of Rs.6-12 lakh. For those who have an annual income between Rs.12-18 lakh, interest subsidy of 3% is provided on loan up to Rs 12 lakh. It needs to be mentioned that as of June 11, Rs.736 crore has been disbursed to 35,204 beneficiaries that belong to the MIG category.
19 June 2018
New home buyers in the regions of Noida and Greater Noida will soon be able to avail a subsidy on home loan of up to Rs.2.5 lakh under the Pradhan Mantri Awas Yojana Scheme. The Uttar Pradesh Government has sent the names of these two towns in the National Capital Region to the Housing and Urban Affairs Ministry, for them to be included in the list of urban areas where the subsidy scheme is valid.
Sources have stated that necessary codes for both the towns have been generated and forwarded to the National Housing Bank and the Housing and Urban Development Corporation, which in turn, will update the list of cities and towns covered under the PMAY. This action comes in after the State Government realised that the people belonging to the two cities were being deprived of interest subsidy on a home loan.
27 March 2018
The Credit Linked Subsidy Scheme (CLSS), that has been introduced by the government of India under the aegis of the Pradhan Mantri Awas Yojana (PMAY), has done good as far as the housing finance sector is concerned, according to HDFC.
This has led to a lot of interest among people in the housing sector as far as purchases are concerned. All those who are buying a home for the first time will be eligible for more and more benefits. Till now, as per the report, as many as 14, 290 people across the country have made use of the CLSC under PMAY. The total benefit that has been granted till now adds up to Rs.302 crore.
There has been more efforts made at making housing facilities available to the low income sections, especially those with an income of less than Rs. 3 lakh per annum.
25 February 2018
In a meeting that took place on Thursday, January 25, between the members of the Haryana state level monitoring and the sanctioning committee of the Pradhan Mantri Awas Yojana, it was informed that an action plan has been prepared to provide houses to the poor in nine cities.
Furthermore, detailed project reports have also been drafted for providing affordable housing to the poor in 10 cities. The meeting took place in Chandigarh, under the leadership of Chief Secretary D.S Dhesi.
As per the plan, a total of 86,924 people are set to benefit from the PMAY scheme. Of these more than 86,000 odd people, housing loans will be provided to 9,413 people, while houses will be provided to 50,0002 of them. The remaining of them will get a grant from the Central and State Government, amounting to a total of Rs. 2.5 lakh.
30 January 2018
In a meeting with the Finance Minister of India, Tamil Nadu state government has appealed to the Centre to increase its contribution in the Pradhan Mantri Awas Yojana (PMAY). According to the deputy chief minister of Tamil Nadu, out of the total tenement cost of Rs.10 lakh for each housing, the Centre’s share is Rs.1.5 lakh per beneficiary and the individual beneficiary share is Rs.1 lakh. Thus, while the state government contributes to 75% of the total cost for each beneficiary, the central government provides for only 15%. Tamil Nadu ministry has thereby urged the Centre to increase its contribution in PMAY scheme from the current Rs.1.5 lakh to at least Rs.5.4 lakh which will also increase the central government’s share to 60%.
23 January 2018
The central government is likely to increase its allocation of budget for the Credit Linked Subsidy Scheme (CLSS) under the PMAY scheme, in the upcoming Union Budget 2018-19.
The CLSS has been received well by the people belonging to the Lower Income Groups (LIG) and Economically Weaker Sections (EWS). The number of beneficiaries in these groups under the CLSS rose dramatically from 17,634 in 2016 to more than 52,000 in 2017. Considering that a sum of only Rs. 400 crore was allocated in the previous year’s budget, there is no doubt that additional funds will be needed.
However, the trend is quite the opposite for the Middle Income Group (MIG). As of December 2017, a total of 9,944 beneficiaries have received subsidies under the scheme, amounting to a total sum of Rs. 204.6 crore. The previous budget had allocated Rs. 1000 crore for this segment. Needless to mention, it has been a slow start in the MIG segment.
22 January 2018
The UP Housing and Development Board has announced that subsidies would be provided to people belonging to various income groups who come under the Pradhan Mantri Awas Yojna (PMAY) so that affordable housing will just be an arm’s length away for people residing in Uttar Pradesh. This offer will be extended by the board under the “Credit Link Subsidy Income” where people will be given subsidies based on a first come first serve basis. People whose annual income falls in the Rs.3 lakh or lower bracket will be entitled to a 6.5% subsidy for homes that measure up to 30 sq.mt. in area. A 6.5% subsidy is provided to people whose annual income falls in the Rs.3-6 lakh bracket for a house that measures up to 60 sq.mt. in area. People whose annual income falls in the Rs.6-12 lakhs bracket can avail 4% subsidy for a house that measures 90 sq.mt in area and 3% subsidy is provided to individuals with an annual salary that falls in the Rs.12-18 lakhs bracket for a house that measures 110 sq.mt. in area.
The board has announced that this subsidy in home loan interest will be provided for loans that have been sanctioned for a tenure of 20 years.
16 January 2018
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