Buying a house is one’s biggest accomplishment; however, it demands a long-term commitment of finances and time-based efforts. A home loan seems the only viable option to achieve the dream of having a house. However, the burden of paying the home loan EMI is not everyone’s business. To overcome this financial hurdle, one can, however, avail a home loan subsidy under PMAY.
What is PMAY Scheme:
Pradhan Mantri Awas Yojana was a social security scheme started by the government in 2015 to provide affordable housing to all. Under this scheme, the government aimed to provide financial assistance to the economically deprived people for constructing the house. Further, the government also tried to utilize the urban spaces to build homes of the slum dwellers. One of the significant parts of the scheme was to provide subsidy for home loans to middle-class people and economically deprived sections of society.
What is a credit-linked subsidy for home loan borrowers under the PMAY scheme:
Under this, the borrowers can avail the home loan on the subsidized interest rates if they fulfil the following eligibility criteria:
- They are first-time home loan borrowers.
- They have not previously availed any government scheme for the house.
- The home loan subsidy is available for the borrowers whose income falls in the income bracket of 3 Lakhs to 18Lakhs.
- They can avail the subsidy for a tenure of 5 years.
The table below summarises who are eligible for taking CLSS:
|Groups||Interest Subsidy||Loan Amount||Net usable carpet area|
|EWS||6.50%||6 Lakhs||30 square meters|
|LIG||6.50%||6 Lakhs||60 square meters|
|MIG 1||4.00%||9 Lakhs||160 square meters|
|MIG 2||3.00%||12 Lakhs||200 square meters|
How and where you can apply for home loan subsidy under PMAY:
The borrowers can apply for the CLSS under PMAY by visiting the Common Service Centre if they are eligible for the subsidy. To register, they need to pay a fee of Rs. 25 plus GST for registration of PMAY subsidy and fill the application form for availing the subsidy. They can also apply for availing the benefits of PMAY scheme by registering themselves on the website of PMAY.
Applying for PMAY online:
The home loan borrowers can apply for the PMAY scheme online by following these steps.
- Visit the pmaymis.gov.in.
- Next, under the citizen assessment option, Choose between ‘ For slum dwellers’ and ‘Benefit under the other three components’.
- Now enter the Aadhar details on the page displayed.
- Next, fill in necessary information such as name, contact number and others in the application form.
- After filling the form, enter the Captcha code and click on the Save button.
- You can check the online status of your application in a few days after the verification of your application form and eligibility for the subsidy.
Applying for PMAY scheme offline: You can also apply for the PMAY scheme offline by visiting the nearest common service centre and filling the application form for PMAY.
Documents for applying for PMAY scheme: These are the documents that you need to submit when you register for the PMAY subsidy:
- Aadhar Card
- PAN card, Voter ID, Driving License
- Proof for minority
- Economically Weaker Section certificate
- Low Income Group certificate
- Salary slips
- IT return statements
- Property valuation certificate
- Bank details and account statements
- Address proof
- Details of the property
The government gives preference to the widows, working women and the women who are bread earners of the family at a concessional interest rate of 4% with no processing fee on the home loan.