Pradhan Mantri Awas Yojana Eligibility

The Pradhan Mantri Awas Yojana (PMAY) (URBAN)-Housing for All was a mission launched by the Indian government with the goal of increasing homeownership.

  • It aimed to achieve ‘Housing for All' by 2022. A subsidy scheme known as the Credit Linked Subsidy Scheme (CLSS) was launched under this mission to provide interest subsidies on loans obtained for the purchase/construction/extension/improvement of a house. 

  • Given the projected growth of urbanization and the resulting housing demand in India, the PMAY scheme caters to the Economically Weaker Section (EWS)/Lower Income Group (LIG) and Middle Income Groups (MIG).



PMAY Eligibility Criteria

The Ministry of Housing and Urban Poverty Alleviation has established a road map as well as the eligibility criteria that prospective applicants must meet. It has also enlisted the assistance of some of the country's leading banks to provide construction loans under PMAY. 

Banks provide loans at a lower interest rate because the government pays the rest on the applicant's behalf. This model of subsidized loans assists more economically disadvantaged people in constructing a home. This is how it appears:

  • The Applicant's Family must not own a home in any part of the country.

  • In the case of a married couple, either a single or joint ownership deal is permitted, with both options receiving only one subsidy.

  • The Applicant's Family must not have benefited from any of the Government of India's housing-related schemes.

  • Every applicant must meet the eligibility criteria established by the PMAY committee in order to receive a house or financial assistance from the government. Prospective applicants have been divided into six groups.

Category

Family Income Annual

Max Carpet Area

EWS

Rs.3 lakh

60 square meters (645.83 square feet)

LIG

Rs.6 lakh

60 square meters (645.83 square feet)

MIG1

Rs.6 lakh to Rs.12 lakh

160 square meters (1722.33 square feet)

MIG2

Rs.12 lakh to Rs.18 lakh

200 square meters (2152.78 square feet)

  • Economically Weaker Section (EWS): The EWS category includes people with annual household incomes of less than Rs.3 lakh. An applicant claiming to be on EWS, on the other hand, must provide relevant proof to the government in order for the government to verify their claims.

  • Light Income Group (LIG): People in the LIG category typically have annual household incomes ranging from Rs.3 lakh to Rs.6 lakh. Again, in order to be considered, they must provide sufficient proof of their financial situation.

  • Medium Income Group (MIG1): Those with an annual household income of less than Rs.12 lakh are classified as MIG1. These individuals are eligible for loans of up to Rs.9 lakh for the construction of a home.

  • Individuals earning an annual household income of Rs.12 to Rs.18 lakh will be classified as MIG2 under the PMAY scheme. These individuals are eligible for loans of up to Rs.12 lakh.

  • Minorities: People from minority groups such as SC/ST/OBC will be classified as minorities. These individuals must meet in order to provide relevant caste and income certificates in order to be considered for the PMAY scheme.

  • Women: If they apply under the PMAY scheme, women from the EWS/LIG categories will be considered.

Aside from that, an applicant must meet a basic requirement. If the beneficiary is a family, for example, it must include a husband, wife, and unmarried children. In addition, no one in the family should own a home in their name.

Pradhan Mantri Awas Yojana Loan Eligibility for MIG

Particulars

MIG 1

MIG 2

Household Income

Rs.12 lakh p.a.

Rs.18 lakh p.a.

Loan Tenure (Max)

20 years p.a.

20 years p.a.

Interest subsidy

4% p.a.

3% p.a.

The eligible amount of loan for interest subsidy (CLSS)

Rs.9 lakh

Rs.12 lakh

Interest subsidy (Max)

Rs.2.35 lakh

Rs.2.3 lakh

Discount for NPV (Net Present Value)

9%

9%

Dwelling unit max carpet area

90 sq. mt

110 sq. mt

Monthly EMI (8.65%) with interest subsidy

Rs.5,834

Rs.8,059

Monthly EMI (8.65%) without interest subsidy

Rs.7,894

Rs.10,528

Pradhan Mantri Awas Yojana Loan Eligibility for LIG/EWS

Amount of loan

Rs.3 lakh

Rs.6 lakh

Rs.10 lakh

Subsidy Amount

Rs.3 lakh

Rs.6 lakh

Rs.6 lakh

Balance loan

Rs.1,66,360

Rs.3,32,720

Rs.7,32,720

Interest subsidy

Rs.1,33,640

Rs.2,67,280

Rs.2,67,280

Initial EMI

Rs.2,895

Rs.5,790

Rs.9,650

Reduced EMI after subsidy credit

Rs.1,605

Rs.3,211

Rs.7,071

Savings on a monthly basis

Rs.1,290

Rs.2,579

Rs.2,579

Savings on an annual basis

Rs.15,480

Rs.30,948

Rs.30,948

What is a Credit-Linked Subsidy Scheme (CLSS)?

The Credit Linked Subsidy Scheme (CLSS) is a benefit provided under the PMAY Scheme that allows the Economically Weaker Section (EWS), Low Income Group (LIG), and Medium Income Group (MIG) to obtain home loans with lower EMIs thanks to an interest subsidy. Under the Pmay subsidy eligibility, the beneficiary will receive an upfront interest subsidy on the principal amount, resulting in a lower effective home loan and EMI.

  • The Credit Linked Subsidy Scheme (CLSS) under PMAY makes home loans more affordable by providing a subsidy on the interest component, which reduces the customer's outflow on the home loan. The amount of the subsidy under the scheme is largely determined by the customer's income category and the size of the property unit being financed.

PMAY Eligibility Criteria - Related FAQs

  • The Pradhan Mantri Awas Yojana – Credit Linked Subsidy Scheme (PMAY-CLSS) was launched by our Honourable Prime Minister Shri Narendra Modi for customers from the Economically Weaker Sections (EWS), Low Income Groups (LIG), and Middle Income Groups (MIG) (MIG-I and MIG-II).

  • Beneficiaries of this scheme would be eligible for a subsidy on the interest on housing loans taken out for the purchase, construction, extension, or improvement of a home.

To be eligible for the Credit Linked Subsidy Scheme (CLSS) under PMAY, the beneficiary's family must meet the following criteria:

  • A family consisting of the husband, wife, and unmarried children should be the beneficiary.

  • The beneficiary can also be an unmarried individual who works in the family.

  • The beneficiary must not own a pucca house in India, either in his or her own name or in the name of any member of his or her family.

  • The beneficiary must meet the criteria for the various categories of the scheme, which are based on family income levels.

  • The beneficiary should not have received central assistance under the mission "Housing for All by 2022."

  • For EWS and LIG beneficiaries, ownership of the property under consideration by a woman is required in all cases, except where the land was already owned by the customer prior to June 17, 2015, and the loan is only used for self-construction of a house on the self-owned land.

  • The property must have basic trunk infrastructure such as water and electricity supply, as well as drainage or sanitation facilities.

The National Housing Bank subsidy will be claimed by the Bank for eligible borrowers (NHB). Following that, the NHB will conduct due diligence to exclude claims where the customer has submitted multiple requests.

The amount of the subsidy would be paid to us on behalf of all eligible borrowers. The bank will credit the interest subsidy to the eligible borrower's loan account as soon as they receive it. The subsidy will be calculated based on the Net Present Value (NPV) at a 9% discount rate.