Real estate, apart from gold, is one of the most preferred asset classes for many Indians. While gold is an asset many can buy, a house is a luxury, not all can afford. Innovation in financial services and products like home loans have made owning a house much easier than it was about a decade ago. However, the dream of a home is still out of reach for those in the lower to middle-income groups. Realising this along with the financial and social safety net that a roof or a house provides to an individual or family, the government of India had launched the Pradhan Mantri Awas Yojana (PMAY) scheme in 2015. The PMAY scheme aims to provide affordable housing to all urban poor by March 2022. In other words, the objective is to eliminate slums and replace them with concrete or pucca houses.
Through the Credit Linked Subsidy Scheme (CLSS), which is part of PMAY, the government provides interest subsidies to economically weaker sections (EWS)/lower income groups (LIG) and middle-income groups (MIG) on loans availed of to purchase/construct/improvement of a house. This makes the home loan more affordable as the PMAY subsidy on the interest component reduces the burden of the home loan. The amount of subsidy that one is eligible for under the scheme depends on which income group one belongs to and the size of the financed property.
Here are some simple steps on how to avail of subsidy under PMAY online
- Eligibility Criteria
Since the primary aim of the PMAY CLSS scheme is to help the urban poor fulfil their housing requirement, only households falling under the EWS, LIG and MIG categories are eligible for PMAY benefits. The EWS and LIG category is defined as a household with an income not exceeding Rs.6 lakh per annum. For the MIG category, the annual income should be in the range of Rs.6 lakh to Rs.18 lakh. The MIG-I category is defined by income in the range of Rs.6 lakh to Rs.12 lakh. The MIG-II category, on the other hand, is defined by income in the range of Rs.12 lakhs to Rs.18 lakhs. Subsidy benefits for EWS/LIG category were extended till March 31, 2022. However, for the MIG categories, the scheme ended on March 31, 2021. Another important criterion to avail of PMAY subsidy (CLSS) is that the beneficiary family, defined as husband, wife and unmarried children, should not be already an owner of a pucca house in any part of the country and have not availed of benefits under any other government of India housing schemes, at the time of applying or availing of the benefits under this scheme.
If you fall under the EWS and LIG category, then you are eligible to claim an interest subsidy of 6.5% for a period of up to 20 years. In the case of MIG I and II categories, an interest rate subsidy of 4% and 3% was being given, respectively, for the same maximum tenor. The maximum subsidy one can avail of is Rs.2.67 lakh, depending on one’s income group. Also, the carpet area, not the built-up, shouldn’t exceed 60 square meters for the EWS/LIG categories of applicants.
- Applying for PMAY Online
If you fall in one of the above-stated eligible categories, you will have to fill the PMAY online application form available on the official PMAY website (http://pmaymis.gov.in/) and submit the necessary documents like PAN card, Aadhaar card, address proof along with other personal information to avail of the benefits related to the scheme. Once the online application is completed, you will be required to contact the selected Primary Lending Institution (PLI) enrolled with the central nodal agency to avail of subsidy benefits on your home loan. Your lender will then ask you to furnish additional details like income proof and property documents (such as the allotment letter and sale agreement copy).
- PMAY List
After completing the application, visit the PMAY official website to know your PMAY status i.e. whether your application has been accepted or not. The PMAY List has the names of applicants who have been selected to receive subsidy benefits under the scheme.
You can visit the following link:
http://pmaymis.gov.in/Open/Find_Beneficiary_DETails.aspx and enter your Aadhaar number to check the PMAY status.
- Verification and Disbursement
After your application is verified, your participating lender or the PLI will disburse the housing loan amount to your bank account. Post disbursal, the lender will then reach out to the nodal agencies to start off the process of claiming interest subsidy. The process can take 3-4 months before you receive the subsidy amount. The subsidy under the PMAY scheme is released to the lender in the form of a reduction in the overall loan liability i.e. the interest subsidy is credited to an applicant’s loan account. The loan amount is then adjusted accordingly leading to lower Equated Monthly Instalments (EMIs).