Availing subsidy under PMAY scheme – all you need to know

The Pradhan Mantri Awas Yojana Scheme launched by the Government of India is one of the most talked about housing schemes. As per this scheme, the Government intends to eradicate slums and replace them with ‘pucca’ or concrete houses. The scheme targets both, urban and rural areas of India and the mission is to construct approximately 4 crore flats by 2022. Also, dubbed the housing for all scheme and the Credit Linked Subsidy Scheme (CLSS), it enables members of certain sections of the society to become home owners by providing home loans at subsidised interest rates. Here’s all you need to know about availing subsidy under this scheme.

Beneficiaries

The PMAY scheme is a government scheme launched in order to make purchasing a house easier for people who belong to such sections of society who cannot afford to purchase a home. This categorisation is done on the basis of each group’s income levels. Such individuals can take on a home loan to purchase a flat under this scheme and receive subsidised interest rates on the loan. The subsidy is offered in accordance with the annual household income of the applicant. The subsidy benefit can be availed for both, purchase or resale, and for construction of a property on a plot of land. The subsidy is also applicable for converting a kuccha house into a pucca one i.e. a home improvement loan. The following groups can benefit from this CLSS scheme, based on their annual household income.

Eligibility criteria

To access the benefits offered under the Pradhan Mantri Awas Yojana Housing for all scheme, you need to belong to the above mentioned income groups and fulfil some basic eligibility requirements. They are as under:

• You need to be living in a nuclear family setting that comprises of you, your spouse and your unmarried children. The primary applicant can be any adult earning member of the family, for instance an unmarried son.
• You should not own a pucca house in the name of any member of the family, across India.
• You can apply for a joint home loan with your spouse with either spouse as the main beneficiary. Couples cannot apply separately for two different loans. The CLSS subsidy is available on a single loan.
• You or your immediate family members should not have received benefits form any other government housing scheme.
• You are considered ineligible for the scheme if you availed a subsidised home loan and switched to another lender for balance transfer
• Beneficiaries belonging to MIG income groups must provide their Aadhaar details mandatorily in order to avail benefits under this scheme.

Claiming benefits under the PMAY scheme – the process

1. The lender sends your details to NHB, once your home loan is disbursed.
2. The nodal agency conducts an evaluation of these details and approves your subsidy if you are eligible.
3. The nodal agency then disburses the subsidy amount to your lender.
4. Once the lender receives the subsidy amount from the nodal agency, the subsidy will be credited to your home loan account and will be accordingly adjusted.

The PMAY home loan interest subsidy can be availed via 2 central nodal agencies – the Housing and Urban Development Corporation (HUDCO) and the National Housing Bank (NHB). These agencies work in collaboration with pre-listed lending institutions like banks, which in turn help beneficiaries avail subsidised interest rates on home loans.