{"id":13391,"date":"2021-02-26T11:51:29","date_gmt":"2021-02-26T11:51:29","guid":{"rendered":"https:\/\/aikdesigns.com\/blog\/?p=13391"},"modified":"2021-09-15T09:27:09","modified_gmt":"2021-09-15T09:27:09","slug":"buying-a-house-learn-about-the-pmay-credit-linked-subsidy-scheme-first","status":"publish","type":"post","link":"https:\/\/aikdesigns.com\/blog\/buying-a-house-learn-about-the-pmay-credit-linked-subsidy-scheme-first\/","title":{"rendered":"Buying a House? Learn about the PMAY Credit-Linked Subsidy Scheme First"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">The Pradhan Mantri Awas Yojana is a flagship housing scheme launched by the Government of India in 2015. Its aim is to provide \u2018affordable housing for all\u2019 by 2022. PMAY caters to both rural and urban areas and the branch of the scheme that works for the urban poor is called PMAY Urban (PMAY-U). PMAY-U addresses the housing needs of urban dwellers through 4 main verticals, one of which is the promotion of affordable housing through credit-linked subsidy. The Credit-linked subsidy scheme (CLSS) gives you a home loan subsidy of up to Rs.2.67 lakh.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">To know the facts about the CLSS component of PMAY, read on.<\/span><\/p>\n<p><b>What is the Credit Linked Subsidy Scheme (CLSS)?<\/b><\/p>\n<p><a href=\"https:\/\/www.bajajhousingfinance.in\/home-loan-pradhan-mantri-awas-yojana\" target=\"_blank\" rel=\"nofollow noopener\"><span style=\"font-weight: 400;\">PMAY<\/span><\/a><span style=\"font-weight: 400;\"> CLSS is a Central Sector Scheme that makes home loan repayment more affordable by providing a subsidy on the interest component of the loan. A direct impact of the housing loan subsidy is a reduction in the home loan EMI.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><b>What are the income categories for PMAY CLSS?<\/b><\/p>\n<p><span style=\"font-weight: 400;\">There are 4 household income categories for PMAY CLSS. They are defined as follows:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Economically Weaker Section (EWS): Household annual income not exceeding Rs.3 lakh<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Lower Income Group (LIG): Household annual income of more than Rs.3 lakh but not exceeding Rs.6 lakh<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Middle Income Group I (MIG-I): Household annual income of more than Rs.6 lakh but not exceeding Rs.12 lakh<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Middle Income Group II (MIG-II): Household annual income of more than Rs.12 lakh but not exceeding Rs.18 lakh<\/span><\/li>\n<\/ul>\n<p><b>What are the home loan subsidy details for the eligible income groups?<\/b><\/p>\n<p>&nbsp;<\/p>\n<table>\n<tbody>\n<tr>\n<td><b>Detail<\/b><\/td>\n<td><b>EWS<\/b><\/td>\n<td><b>LIG<\/b><\/td>\n<td><b>MIG-I<\/b><\/td>\n<td><b>MIG-II<\/b><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Purpose<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Acquisition\/ construction\/ Enhancement to existing dwelling as incremental housing<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Acquisition\/ construction\/ Enhancement to existing dwelling as incremental housing<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Acquisition\/ construction (including repurchase)<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Acquisition\/ construction (including repurchase)<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Maximum carpet area<\/span><\/td>\n<td><span style=\"font-weight: 400;\">30 sq.m<\/span><\/td>\n<td><span style=\"font-weight: 400;\">60 sq.m<\/span><\/td>\n<td><span style=\"font-weight: 400;\">160 sq.m<\/span><\/td>\n<td><span style=\"font-weight: 400;\">200 sq.m<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Interest subsidy rate<\/span><\/td>\n<td><span style=\"font-weight: 400;\">6.5%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">6.5%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">4%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">3%<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Maximum subsidy<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Rs.2,67,280<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Rs.2,67,280<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Rs.2,35,068<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Rs.2,30,156<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Subsidy applicable on loan amount of up to<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Rs.6 lakh<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Rs.6 lakh<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Rs.9 lakh<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Rs.12 lakh<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>&nbsp;<\/p>\n<p><b>How does the home loan subsidy of PM Awas Yojana work?<\/b><\/p>\n<p><span style=\"font-weight: 400;\">Consider that you are from MIG-II category and take a loan of Rs.12 lakh for 20 years at a 9% rate.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Your:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">EMI = Rs.10,797<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Total interest = Rs.13,91,210<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">With PMAY CLSS you get a subsidy of up to Rs.2,30,156.\u00a0<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Reduced loan = Rs. 9,69,844<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">New EMI = Rs.8,726<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Total Interest = Rs.11,24,381<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">The subsidy is released by the applicable Central Nodal Agency (CNA) to the Primary Lending Institute (PLI). This home loan subsidy is credited to your account upfront. As in the above example, you then pay interest on the balance principal amount.<\/span><\/p>\n<p>L<b>imit on the loan amount you can avail?<\/b><\/p>\n<p><span style=\"font-weight: 400;\">There is no limit on the ticket-size of the loan. However, the home loan subsidy is applicable only up to the limits described above for the respective income groups. Beyond the limit, the loan will have to be repaid at a non-subsidised rate.\u00a0<\/span><\/p>\n<p><b>What is the meaning of carpet area?<\/b><\/p>\n<p><span style=\"font-weight: 400;\">Carpet area refers to the usable floor area of the house, the area over which you can lay a carpet. It excludes the area covered by walls and balconies.\u00a0<\/span><\/p>\n<p><b>What are the eligibility criteria for PMAY CLSS?<\/b><\/p>\n<p><span style=\"font-weight: 400;\">To qualify for PM Awas Yojana, the beneficiary family must not own a <\/span><i><span style=\"font-weight: 400;\">pucca <\/span><\/i><span style=\"font-weight: 400;\">house in any part of India or have availed assistance through another housing scheme from the Centre. The beneficiary family comprises the husband, wife, unmarried sons and\/or unmarried daughters. In the case of a married couple, a single home loan subsidy can be availed by either spouse or both together. In the MIG category, any adult earning member can be treated as a separate household.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Further, you must belong to one of the eligible income groups and adhere to the carpet area restrictions. You can use the eligibility calculator to better understand your eligibility.<\/span><\/p>\n<p><b>Does Pradhan Mantri Awas Yojana promote women ownership?<\/b><\/p>\n<p><span style=\"font-weight: 400;\">Yes, however, women ownership is not mandatory for the MIG category. Moreover, for the EWS\/LIG category, the requirement for women ownership\/co-ownership is not there if there is no woman beneficiary in the household or if the funds are used for construction on an existing plot or renovation of a <\/span><i><span style=\"font-weight: 400;\">kuccha<\/span><\/i><span style=\"font-weight: 400;\"> house.<\/span><\/p>\n<p><b>How to benefit from PMAY CLSS?<\/b><\/p>\n<p><span style=\"font-weight: 400;\">To benefit from PMAY CLSS you must avail a home loan from a primary lending institution, such as a scheduled commercial bank or housing finance company. For instance, you can avail of an interest subsidy with the Bajaj Housing Finance Limited<\/span><a href=\"https:\/\/www.bajajhousingfinance.in\/home-loan\" target=\"_blank\" rel=\"nofollow noopener\"><span style=\"font-weight: 400;\"> Home Loan<\/span><\/a><span style=\"font-weight: 400;\">. Here, you get up to Rs.3.5 crore at an attractive interest rate and for a tenor that stretches up to 30 years. If you are eligible for a home loan subsidy, submit your CLSS subsidy application to Bajaj Housing Finance Limited and await the amount to be credited to your loan account.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Having learnt how Pradhan Mantri Awas Yojana makes housing more affordable, apply online for a home loan and make your dreams a reality soon.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Pradhan Mantri Awas Yojana is a flagship housing scheme launched by the Government of&#8230;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[158],"tags":[],"class_list":["post-13391","post","type-post","status-publish","format-standard","hentry","category-business"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/aikdesigns.com\/blog\/wp-json\/wp\/v2\/posts\/13391","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/aikdesigns.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/aikdesigns.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/aikdesigns.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/aikdesigns.com\/blog\/wp-json\/wp\/v2\/comments?post=13391"}],"version-history":[{"count":0,"href":"https:\/\/aikdesigns.com\/blog\/wp-json\/wp\/v2\/posts\/13391\/revisions"}],"wp:attachment":[{"href":"https:\/\/aikdesigns.com\/blog\/wp-json\/wp\/v2\/media?parent=13391"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/aikdesigns.com\/blog\/wp-json\/wp\/v2\/categories?post=13391"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/aikdesigns.com\/blog\/wp-json\/wp\/v2\/tags?post=13391"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}