Pradhan Mantri Awas Yojana (PMAY)

Pradhan Mantri Awas Yojana was launched in the year 2015 by the Prime Minister of India, Narendra Modi to ensure that by 2022 (the 75th year of Indian Independence) all Indians have a home to live in. This mission is guided by the principle of “ Housing for all”.

There are four verticals that are made available by the Government under this scheme so that it suits the needs of all those looking to have a dwelling unit of their own.

  1. "In-situ" Slum Redevelopment (ISSR):

    Slum redevelopment Central assistance of Rs.1 lakh per house is admissible for all houses built for eligible slum dwellers under the component of In-situ Slum Redevelopment (ISSR) using land as a resource with the participation of private developers.

    This slum rehabilitation grants can be utilized by States/UTs for any of the slum redevelopment projects

  2. Credit Linked Subsidy Scheme (CLSS):

    Interest Subsidy up to 2.67 lakh per house is admissible for Beneficiaries of Economically Weaker Section (EWS)/Low Income Group (LIG), Middle Income Group (MIG)-I and Middle Income Group (MIG)-II seeking housing loans from Banks, Housing Finance Companies and other such institutions for acquiring/constructing houses.

  3. Affordable Housing in Partnership (AHP):

    Central Assistance of Rs.1.5 Lakh per EWS house is provided by the Government of India in projects where at least 35% of the houses in the projects are for the EWS category and a single project has at least 250 houses.

  4. Beneficiary-led individual house construction/enhancements (BLC):

    Under this component, the central assistance of Rs.1.5 lakh is available to individual eligible families belonging to EWS categories.

Eligibility Criteria for Applying to PMAY CLSS Scheme

The eligibility criteria for PMAY are based on the following criteria which depend on the Socio-Economic and Caste Census of India. The eligibility criteria for various categories based on income criteria are

  • In the Economically Weaker Section (EWS)

    Families with an annual income up to Rs. 3 Lakh can avail the subsidy

  • In Low Income Group (LIG)

    Families with an annual income between Rs. 3 Lakh -Rs 6 lakh are considered eligible.

  • Middle Income Group I (MIG I)

    Families in the annual income bracket between Rs. 6 -12 Lakh are eligible.

  • No Guarantee of the Loan

    Families falling in the annual income bracket between Rs. 12 Lakh - Rs. 18 Lakh.

The other PMAY eligibility criteria that are required to be met for availing a subsidy are

The beneficiary families do not have a pucca house. Husband, wife and unmarried children constitute are considered as family members

Benefit Available under Pradhan Mantri Awas Yojana for Various Categories

The CLSS benefit available under various categories are given as under for your easy understanding.

Allowed purpose of the loan Max carpet area allowed Max loan tenure The validity of the Scheme % of Interest Subsidy Max. Loan for Subsidy Max. Subsidy Amount
EWS Construction/Purchase or Extension 30 sq meters 20 yrs 31 Mar 2022 6.5% Rs 6 Lakh Rs 2.67 Lakh
LIG Construction/Purchase or Extension 60 sq meters 20 yrs 31 Mar 2022 6.5% Rs 6 Lakh Rs 2.67 Lakh
MIG I Purchase/Construction 120 sq meters 20 yrs 31 Mar 2022 4% Rs 9 lakh RS 2.35 Lakh
MIG II Purchase/Construction 200 sq meters 20 yrs 31 Mar 2022 3% Rs 12 lakh RS 2.35 Lakh

Categories under Pradhan Mantri Awas Yojana

PMAY schemes can be categorized into 2 different sections PMAY Gramin for rural areas and PMAY-U for urban areas.

PMAY G aims to help those poor living in the rural areas who live in old dilapidated houses without resources to carry out repairs.

PMAY-U is for the urban population. The categorization of the urban population eligible for applying for subsidy under PMAY-U are as follows

  • Economically Weaker Section (EWS),
  • Lower Income Group (LIG)
  • Middle Income Group-I (MIG-I) and
  • Middle Income Group-II (MIG-II)
  1. Can individuals avail benefit under more than one category of PMAY?

    Only individuals falling under the EWS section are eligible for benefits under all the 4 verticals of PMAY. But the benefit can be availed from only form 1 vertical that is best suited to their needs.

    However, LIG/MIG category is eligible under only the CLSS component of the Mission.

  2. Who are the nodal agencies responsible for the disbursal of the CLSS subsidy?

    NHB, HUDCO, and SBI have been identified as Central Nodal Agencies (CNAs) to channelize this subsidy to the lending institutions and for monitoring the progress of this component by the Govt.

  3. How can I avail of the CLSS subsidy when applying for a home loan?

    Primary Lending Institutions are Scheduled Commercial Banks, Housing Finance Companies, Regional Rural Banks (RRBs), State Cooperative Banks, Urban Cooperative Banks, or any other institutions as may be identified by the MoHUA. You can apply for a home loan from any of these organizations and avail of a subsidy.

  4. What is the process of applying a subsidy under CLSS?

    The subsidy would be released by the Central Nodal Agencies based on the disbursements made by banks/other eligible financial institutions to the beneficiaries. The subsidy is disbursed by the CNA to the banks/other institutions who will in turn credit it to the beneficiary. This will be deducted from the principal amount. As a result, the EMI will be payable on the remaining portion of the principal amount.

    Example: The borrower avails a loan for Rs. 8.00 lakhs and subsidy thereon works out to Rs. 2.20 lakhs, the amount (Rs. 2.20 lakhs) would be reduced upfront from the loan (i.e., the loan would reduce to Rs. 5.80 lakhs) and the borrower would pay EMIs on the reduced amount of Rs. 5.80 lakhs. That is how an individual will get a CLSS subsidy.

  5. Is it mandatory that a woman has to hold the ownership of the house purchased or constructed under PMAY?

    Yes, woman ownership of the house is mandatory for houses purchased or constructed with PMAY assistance only for the EWS category. For LIG and MIG categories, this is not mandatory.