All about home-loan-subsidy under Pradhan Mantri Awas Yojana

India

23 Jun 2018

Pradhan Mantri Awas Yojana: Process to get home loan subsidy

The Indian government launched Pradhan Mantri Awas Yojana (PMAY) in 2015 with the aim of providing affordable housing for all by 2022.

One of the most talked-about components of this initiative is the Credit-Linked Subsidy Scheme, which enables beneficiaries of the scheme to get a subsidy on their home loan's interest rate.

Here's how you can get the home loan subsidy under PMAY.

CLSS

What is the Credit-Linked Subsidy scheme (CLSS)?

What is the Credit-Linked Subsidy scheme (CLSS)?

The Credit-Linked Subsidy Scheme (CLSS) provides housing solutions for purchase, construction, improvement/extension of a home.

It can be availed by people belonging to Economically Weaker Sections (EWS), Lower Income Group (LIG) with a household income of up to Rs. 6 lakh/annum, and the Middle Income Group which has a household income ranging between Rs. 6 lakh to Rs. 18 lakh/annum.

Eligibility

Eligibility criteria for getting home-loan interest rate subsidy: Part 1

The loan must be for a property which is located in a city covered under the Pradhan Mantri Awas Yojana (PMAY).

The beneficiary or any member of his/her family (wife, husband, and unmarried children) should not own a house in India.

You should not have availed of a benefit under a government housing scheme earlier.

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Eligibility

Eligibility criteria for getting home-loan interest rate subsidy: Part II

Eligibility criteria for getting home-loan interest rate subsidy: Part II

Further, in the case of married couples, either one or both of the spouses in joint ownership of the property qualify for a single subsidy.

In case of applicants belonging to the EWS and LIG category, one of the owners of the property for which loan is being taken must be a woman.

Details

Interest rate subsidy, loan amount for income upto Rs. 12L

EWS and LIG (income up to Rs. 6L) get an interest rate subsidy of 6.5% on a maximum loan of Rs. 6L, for a property with a minimum carpet area of 60sqm.

Middle Income Group-1 (income between Rs. 6-12L) get an interest rate subsidy of 4% on a maximum loan of Rs. 9L, for a property with a minimum carpet area of 90sqm.

Interest rate subsidy, loan amount for income between Rs. 12-18L

Further, for applicants belonging to Middle Income Group-2, an interest rate subsidy of 3% is applicable on a maximum loan amount of Rs. 12 lakh, for a property which has a minimum carpet area of 120sqm.

Part 1

Process for getting home loan interest subsidy under CLSS

Process for getting home loan interest subsidy under CLSS

Eligible beneficiaries can get the home loan interest rate subsidy by following the below process:

Apply for a home loan from a lending institution listed under the PMAY and ask for a subsidy on the home loan interest rate.

After this, the lending institution will review your application, and if approved it will send it to the Central Nodal Agency.

Part 2

Process for getting home loan interest subsidy under CLSS

Upon verification, if the Central Nodal Agency approves your application it will disburse the subsidy amount to the lending institution.

After this, the lending institution will credit the subsidy amount to your account, lowering your total loan amount.

You may then repay the balance loan amount via Equated Monthly Instalments (EMIs).

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Home Loan

Narendra Modi

Pradhan Mantri Awas Yojana (PMAY)

Central Nodal Agency

CLSS

Credit-Linked Subsidy Scheme

Economically Weaker Sections

EMI

Equated Monthly Instalments

EWS

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Most asked questions

How much time it will takes to get subsidy?

How to get Pradhan Mantri Awas Yojana subsidy for existing loan?

If we construct in an area more than 110 sqm, will that qualify for PMAY?

How to get a home loan under PMAY? Please explain all the process of getting a home loan.

I have taken a loan from LIC Kolkata under PMAY one year back. Now, no details are getting reflected online and neither LIC is helping nor I am I able to connect to NHB. Please, advice whom to contact.

More questions

How much time it will takes to get subsidy?

Asked 2019-07-27 23:47:17 by Ajit Pal

Answered by NewsBytes

It takes three to four months to receive the subsidy under the scheme.

How to get Pradhan Mantri Awas Yojana subsidy for existing loan?

Asked 2018-06-24 08:49:51 by Raj Kumar

Answered by NewsBytes

For all such queries, you can contact Pradhan Mantri Awas Yojana (PMAY) Helpline- here (Gramin). For more information and queries related to CLSS, you can contact here (Urban).

If we construct in an area more than 110 sqm, will that qualify for PMAY?

Asked 2018-06-23 22:52:55 by Pattath KRISHNAN PRAKASH

Answered by NewsBytes

For all such queries, you can contact Pradhan Mantri Awas Yojana (PMAY) Helpline- here (Gramin). For more information and queries related to CLSS, you can contact here (Urban).

How to get a home loan under PMAY? Please explain all the process of getting a home loan.

Asked 2018-06-23 13:41:40 by Rahul mishra

Answered by NewsBytes

After your home loan is sanctioned, your details are verified. Once everything is cleared, you are eligible for the subsidy. After your loan is disbursed, your financial institution claims the subsidy on your behalf. After this, the amount is sent to the financial institution and is then credited to your home loan account, respectively. After it gets credited, your EMIs dip accordingly.

I have taken a loan from LIC Kolkata under PMAY one year back. Now, no details are getting reflected online and neither LIC is helping nor I am I able to connect to NHB. Please, advice whom to contact.

Asked 2018-06-23 11:19:15 by Vivek Singhania

Answered by NewsBytes

You can get your grievances redressed by contacting LIC and communicating your problem to them. You can use this link to contact your respective center in Kolkata.

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