The Government of India launched the PMAY scheme to provide affordable housing facilities to the economically challenged sections of society. Under this scheme, the government targets to achieve its “housing for all” objective by the end of 2022. This housing scheme is broadly divided into PMAY (Gramin) and PMAY (Urban).
One of the primary components of this initiative is the Credit-linked Subsidy Scheme, which facilitates home loans at subsidised interest rates. To avail benefits of this subsidy scheme, one needs to meet the PMAY 2021 eligibility parameters defined for LIG, MIG I and II, and EWS.
How to avail PMAY-CLSS subsidy?
Several financial institutions offer housing loans under this scheme. Individuals can follow the below-mentioned steps to apply.
- Choose the preferred financial institution that features the PMAY 2021.
- The application form must be duly filled with relevant information .
- Next, individuals need to upload the application form with the necessary documents.
- The lender will verify all the documents and proceed to nodal agencies to process the subsidy benefit.
- An applicant or any of his/her family member should not own a pucca house in any part of the country
- For EWS/LIG in the PMAY housing scheme, female ownership is mandatory, and for MIG, the same is applicable.
- Property location should be within the boundary of statutory towns according to the 2011 census.
- A borrower must not be a beneficiary of any central government-assisted housing scheme.
- The construction or renovation for which the home loan is availed should be completed within 3 years of loan disbursal.
Pradhan Mantri Awas Yojana beneficiaries are based on individual income groups, which one should be aware of if they are a first time home buyer eligible for PMAY.
EWS: A candidate whose yearly household income is below Rs.3 lakh falls under this section. Beneficiaries are eligible for an interest subsidy of up to Rs.2.67 lakh. The applicant needs to submit authentic documents to validate their subsidy claims.
MIG-I: Applicants earning less than Rs.12 lakh fall under this category. They can obtain loans up to Rs.9 lakh for house construction or renovation. On such a loan, individuals can enjoy an interest subsidy of up to Rs.2.35 lakh.
MIG-II: Borrowers with a yearly household income from Rs.12 – 18 lakh are included under this category. These applicants can obtain up to Rs.12 lakh as loan and enjoy subsidy up to Rs.2.3 lakh.
LIG: Those with a yearly household income ranging between Rs.3 lakh – 6 lakh are a part of this category. The subsidy amount remains the same as EWS group.
Individuals meeting all the aforesaid parameters of PMAY 2021 can avail subsidy benefits from this scheme along with ground-floor accommodation for senior citizens and differently-abled individuals. The developers and builders engaged in constructing houses under this initiative are strictly instructed to utilise environment-friendly materials.
However, individuals can only avail the key benefits of PMAY scheme if their names appear on the beneficiary PMAY list. The PMAY 2021 plan also includes essential documentation that individuals need to submit before applying for housing credit from lending institutions.
- Application form
- Declaration of property papers
- Identity proof
- Address proof
- Income proof
- Address proof of business
Along with these documents, individuals may also have to submit additional documents as per their financial lender’s requirements. However, some reputed HFCs extend pre-approved offers designed to simplify and expedite the credit application process. Such offers apply to a host of financial products, including loans against property and home loans. To check your pre-approved offer, submit name and contact information.
While checking these offers, individuals shall also verify whether such financial institution is empanelled under PMAY 2021 and if it offers an interest subsidy.