Pradhan Mantri Awaas Yojana (PMAY) – Housing for All is an initiative launched by the Government of India to promote homeownership. Its main goal is to achieve "Housing for All" by 2022. The scheme offers a subsidy under the Credit Linked Subsidy Scheme (CLSS), which provides interest subsidies on loans for purchasing, constructing, extending, or improving a house. PMAY primarily targets the Economically Weaker Section (EWS), Lower Income Groups (LIG), and Middle Income Groups (MIG) to address the growing urbanization and housing demands in India.

PMAY Benefits

The Credit Linked Subsidy Scheme (CLSS) makes home loans more affordable by reducing the interest rates through subsidies. The subsidy amount varies based on the income category and the size of the property being financed.

CLSS EWS/LIG Scheme under PMAY

This scheme is for individuals with annual household incomes between ₹3 lakh and ₹6 lakh. Beneficiaries from the EWS/LIG categories can avail a maximum interest subsidy of 6.5%, provided the property size doesn’t exceed 60 square meters (approximately 645.83 square feet). The subsidy is capped at a maximum loan amount of ₹6 lakh.

CLSS MIG 1 Scheme under PMAY

The MIG 1 category includes households with incomes between ₹6 lakh and ₹12 lakh annually. Beneficiaries in this category can receive a 4% interest subsidy on properties that do not exceed 160 square meters (approximately 1,722.23 square feet). The subsidy is capped at ₹9 lakh for a loan tenure of up to 20 years.

CLSS MIG 2 Scheme under PMAY

The MIG 2 category covers households with incomes between ₹12 lakh and ₹18 lakh. Beneficiaries are eligible for a 3% interest subsidy on properties that do not exceed 200 square meters (approximately 2,152.78 square feet). The subsidy is capped at ₹12 lakh for a loan tenure of up to 20 years.

Pradhan Mantri Awaas Yojana Eligibility

To qualify for the scheme, the beneficiary family must not own a pucca house anywhere in India. In the case of a married couple, either one of the spouses or both jointly can apply for a single subsidy. The family should not have received central assistance or benefits under any government housing scheme previously.

Pradhan Mantri Awaas Yojana Beneficiary

A beneficiary family includes the husband, wife, and unmarried children. In the MIG category, an adult earning member, irrespective of marital status, can be considered a separate household.

Pradhan Mantri Awaas Yojana Coverage

The scheme covers all statutory towns as per Census 2011 and towns notified subsequently, including planning areas related to statutory towns.

Ownership by a woman is not mandatory for construction or extension purposes. According to an amendment made on 15.03.2018, an adult earning member (regardless of marital status) may be recognized as a separate household. In the case of a married couple, either one or both spouses can jointly qualify for a single house if they meet the income eligibility criteria.

For MIG 1 & 2, loans must be approved on or after 01-01-2017. The Aadhaar number(s) of the beneficiary family are required for the MIG category. The interest subsidy will be available for a maximum loan tenure of 20 years or the loan tenure, whichever is shorter. The interest subsidy will be credited upfront to the loan account of beneficiaries through SS Group, leading to reduced effective housing loan and Equated Monthly Installment (EMI).

The Net Present Value (NPV) of the interest subsidy will be calculated at a discount rate of 9%. Any loan amount exceeding the specified limits will be subject to non-subsidized interest rates. There is no cap on the loan amount or the cost of the property.

For further details on the scheme, please visit the official PMAY website.

Note:

Assessment of your eligibility to avail the benefits of CLSS is solely at the discretion of the Government of India. The information provided here outlines the criteria for assessing entitlement under the scheme.