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How to apply for home loan under The Pradhan Mantri Awas Yojana

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The Pradhan Mantri Awas Yojana (URBAN)-Housing for All was a government of India initiative to increase homeownership. It set a goal of achieving 'Housing for All' by 2022. Credit Linked Subsidy Scheme (CLSS) was launched as part of this mission to provide interest subsidy on loans taken for the purchase/construction/extension/improvement of a dwelling. The PMAY program is targeted at the Economically Weaker Section (EWS)/Lower Income Groups (LIG) and Middle Income Groups (MIG) of society, in light of India's expected urbanization growth and resulting housing need.

Advantages of PMAY

The Credit Linked Subsidy Scheme under PMAY makes house loans more accessible by subsidizing the interest component, which reduces the customer's outflow on the home loan. The subsidy amount depends heavily on the customer's income group and the size of the property unit being financed.

The following advantages are available according to income level:

EWS/LIG CLSS PMAY scheme:

LIG and EWS households have an annual household income of more than 3 lakh but less than 6 lakh.

Economically Weaker Section and Lower Income Group recipients are eligible for a maximum interest subsidy of 6.5 percent, providing the unit being developed or purchased does not exceed the carpet area limit of 60 square meters (approximately 645.83 square feet). Interest subsidy is limited to a loan amount of up to Rs. 6 lakh.

CLSS MIG 1 Scheme in the context of PMAY:

MIG 1 households earn more than Rs. 6 lakh but less than Rs. 12 lakh. Beneficiaries in the MIG-1 category are entitled to a maximum 4% interest subsidy, providing the unit being constructed or bought does not exceed the required carpet area of 160 square meters (approximately 1,722.23 square feet). However, this subsidy is limited to a maximum loan amount of 9 lakh over a full loan term of 20 years.

CLSS MIG 2 Scheme in the context of PMAY:

MIG 2 is classified as a family income of more than 12 lakh but less than 18 lakh.

MIG-2 category recipients are entitled to a maximum interest subsidy of 3%, providing the unit being developed or purchased does not exceed the carpet area minimum of 200 square meters (approximately 2,152.78 square feet). However, this subsidy is limited to a maximum loan amount of 12 lakh over a full loan term of 20 years.

Eligibility for Pradhan Mantri Awas Yojana

  • Beneficiary family shouldn't own a pucca house in India in his or her name or the name of any member of the family.
  • In a married pair, either spouse or both will be eligible for a single subsidy.
  • The beneficiary family shouldn't have received central aid under any Government of India housing project or any benefit under any PMAY plan.

The beneficiary of the Pradhan Mantri Awas Yojana

The beneficiary family will consist of a husband and wife, as well as their unmarried children. (In the MIG category, an adult earning member, regardless of marital status, may be classified as a typical household.)

Coverage of the Pradhan Mantri Awas Yojana

All statutory towns as defined by Census 2011 and towns that have been notified subsequently, including the planning area for each statutory town