The Government of India launched the PMAY (Pradhan Mantri Awas Yojana) in June 2015 as part of its ‘Housing for All’ mission, which aims to provide a permanent residence to all Indian citizens, especially those belonging to the lower-income groups.
Under the PMAY initiative, the government aims to build more than two crore new affordable housing units in different parts of the country and allot the units to eligible beneficiaries. Also, under PMAY the government aims to offer financial aid to encourage people from lower and middle income groups to purchase a new home.
The financial aid offered is in the form of a subsidy on the home loan interest rate. The government has collaborated with various financial organisations to extend the subsidy benefit, which is called CLSS or Credit Linked Subsidy Scheme.
If you are a first-time home buyer and want to apply for a home loan under the PMAY scheme, you may have several questions. So, in this write-up we address a few most popular FAQs for your perusal.
How much interest subsidy can I get under CLSS?
To ensure that all eligible beneficiaries get maximum subsidy benefits under CLSS, the government of India has divided the applicants in four groups based on their income. People from the lowest income group get the highest subsidy and vice versa.
The four income groups are:
- EWS – Economically Weaker Section
- LIG – Lower Income Group
- MIG I and MIG II – Middle Income Group
For EWS and LIG categories, the interest subsidy is 6.5% on loan amount up to Rs. 6 lakhs.
For MIG I and MIG II categories, the interest subsidy is 4% and 3% on loan amounts up to Rs. 9 lakhs and Rs. 12 lakhs respectively.
How can I check my application status for the PMAY subsidy?
Tracking your PMAY subsidy application status is easy. Follow the below steps:
- Visit the official PMAY website – www.pmayuclap.gov.in
- Browse through the CLSS tracker section.
- Enter your PMAY subsidy applicant ID and click on the ‘get status’ button.
- You will receive an OTP (one-time password) on your registered mobile number with the home loan provider. Enter the OTP in the relevant field.
- You can view the latest subsidy processing status.
How is the PMAY interest subsidy processed? And Will I get the subsidy?
- After you apply for a home loan under PMAY with the lender of your choice and get the disbursement, the lender will apply for the subsidy benefits to the NHB (National Housing Bank) on your behalf.
- The NHB will verify your claim application and review your documents. If you are eligible for the subsidy, it will credit the subsidy amount as per your income category to the lender.
- Once the lender receives the amount from NHB, they will credit it to your home loan account and revise the EMI accordingly.
- This means once you get the PMAY subsidy benefits, you can expect your EMI to be reduced.
- You can calculate the revised EMI using the PMAY Calculator.
Is it compulsory to have a co-owner to get PMAY benefits?
If you are a female and want to apply for a home loan under PMAY, you need not have a co-owner. However, all male applicants must compulsorily include a female family member as a co-owner of the property. The female members can be spouse, daughter, or mother.
PMAY is an excellent initiative by the government of India that has helped several aspiring homeowners to accomplish their dream. Do your due diligence about the scheme’s benefits and make the most out of it.