Introduction

The Pradhan Mantri Awas Yojana (PMAY) was introduced with a vision of providing “Housing for all”, to address the urban housing shortage among the Economically Weaker Section (EWS) / Lower Income Group (LIG) and Mid-Income Group (MIG) categories, to ensure a ‘pucca’ house to all eligible urban households, by the year 2022.

As part of the mission, the government rolled out various schemes and one of them is the Credit Linked Subsidy Scheme (CLSS), aimed at offering subsidies on Home Loans availed for:

  • Purchase of a new or old residential house
  • Construction of a residential house
  • Purchase of land and construction of a residential unit
  • Extension of the existing residential unit.

With ICICI Bank, you can avail the benefits of the Credit Linked Subsidy Scheme under PMAY. The objective of CLSS is to extend affordable housing and expand institutional credit outflow to the housing needs of the urban poor. Any person from the EWS/LIG/MIG, can avail the interest subsidy, subject to meeting the PMAY eligibility criteria:

The CLSS details are categorised based on the income groups, as listed below:

ParticularsEWSLIGMIG IMIG II
Scheme Duration Jun 17, 2015 to Mar 31, 2022 Jan 01, 2017 to Mar 31, 2021
Household Income (Rs.) Up to 3,00,000/- 3,00,001/- to 6,00,000/- 6,00,001/- to 12,00,000/- 12,00,001/- to 18,00,000/-
Subsidy Amount 2.67lkh 2.67lkh 2.35lkh 2.30lkh
Interest Subsidy (% p.a.) 6.5% 4.0% 3.0%
Maximum Loan Tenure
20 years
Eligible Housing Loan Amount for Interest Subsidy (Rs)* 6,00,000/- 9,00,000/- 12,00,000/-
Dwelling Unit

Carpet Area (Up to) in sq. m

Up to 30 sq.m Up to 60 sq.m Up to 160 sq.m Up to 200 sq.m
Discounted Rate for Net Present Value (NPV) calculation 9%

# The beneficiary, at his/her discretion, can build a house of a larger area but the interest subvention would be limited to Rs 6 lakh, only.
* Loans beyond this limit will not get interest subvention.

CLSS benefits as different income categories

  • CLSS EWS / LIG: Beneficiaries under this scheme have a household income that is below Rs 3 lakh, but does not exceed Rs 6 lakh. Beneficiaries of Economically Weaker Sections (EWS) and Low Income Groups (LIG) seeking housing loans from Banks, Housing Finance Companies and other such institutions are eligible for an interest subsidy at the rate of 6.5%, for a tenure of 20 years or during the tenure of the loan, whichever is lower
  • CLSS MIG I: Beneficiaries falling under this scheme have an annual household income ranging between Rs 6 – Rs 12 lakh. Under this scheme, the prospective Home Loan buyers are entitled to an interest subsidy of 4% on a maximum loan amount of Rs 9 lakh, over a tenure of up to 20 years
  • CLSS MIG II: Beneficiaries falling under this scheme have an annual household income ranging between Rs 12 – Rs 18 lakh. Borrowers are eligible to get an interest subsidy of up to 3% on a maximum loan amount of Rs 12 lakh, with a tenure of up to 20 years.

PMAY Eligibility

You need to meet the following PMAY eligibility, to take advantage of the loan subsidy:

  • Age of the Home Loan applicant should be between 21-70 years
  • Beneficiary’s family can comprise of the husband, wife and unmarried children
  • Beneficiaries should not own a ‘pucca’ house or any dwelling unit in their name or any family member’s, anywhere in the country
  • Beneficiary or his/her family members should not have availed or applied for any other government scheme or any other benefits as under PMAY
  • Either one of the spouses or both can apply for a single subsidy.

Documents required for CLSS under the PMAY scheme

When it comes to Credit Linked Subsidy Scheme documentation under the PMAY section, beneficiaries need to produce the following paperwork:

  • Identity proof required to avail the subsidy is the Aadhaar Card
  • A declaration of not owning a ‘pucca’ house in the beneficiary or any family member’s name in India. Self-declaration is documented for the same, which includes family income declaration, along with the beneficiaries’ details
  • A copy of the annual household income
  • Existing loan details, if any -This is not required, as the same will be a part of the CIBIL report.

PMAY Calculator - Home Loan subsidy calculator

The Home Loan subsidy calculator is a self-help Home Loan planning tool. Based on factors like the loan amount, annual family income, tenure, and carpet area, the online tool helps to estimate the subsidy amount. The online PMAY calculator is designed to give Economical Weaker Sections (EWS)/Lower Income Groups (LIG)/Middle Income Groups (MIG), an understanding about the Home Loan details.

How does one avail a Home Loan subsidy under the CLSS PMAY scheme?

Once you become eligible for a Home Loan subsidy under the PMAY scheme, you need to follow the steps below, to begin the application process:

  • Click here (https://www.icicibank.com/managed-assets/docs/personal/loans/pmay-self-declaration.pdf), to download the Self Declaration Form
  • Submit the form, duly filled, at the asset servicing branch of ICICI Bank that is nearest to you. Click here, to view the nearest asset servicing branch
  • Carry the original document of your proof of ID. PAN Card issued in India is no longer considered a valid proof of identity,
  • The Aadhaar number is mandatory to avail the subsidy. We request you to carry the original Aadhaar Card of all the members of your family.

You can check the PMAY status or use the CLSS tracker to know the status of the application.

Important points to note:

  • The interest subsidy will be available for loans with a tenure of 20 years or during the tenure of the loan, whichever is lower
  •  Interest subsidy is credited upfront to the loan accounts of beneficiaries through Primary Lending Institutions, resulting in reduced effective housing loans and Equated Monthly Instalments (EMI)
  • There is no cap on the maximum Home Loan amount. In case any borrower wants to avail the loan beyond the specified limits, then non-subsidised interest rates will be applicable
  • It is significant to provide the correct details of the family members
  • The Self-Declaration Form should include signatures of applicants and co-applicants
  • The Home Loan subsidy is subject to approval and clearance from the National Housing Bank.

Popular FAQs

What is the Pradhan Mantri Awas Yojana (PMAY) – Credit Linked Subsidy Scheme (CLSS)?

The Credit Linked Subsidy Scheme (CLSS) was launched byour Honourable Prime Minister Shri Narendra Modi under the Pradhan Mantri Awas Yojana (PMAY). The scheme is a part of the mission of providing “Housing for all” for the urban poor.

Under the CLSS scheme, Economically Weaker Sections (EWS) / Lower Income Groups (LIG) / Middle Income Groups (MIG), can be eligible for interest subsidy on Home Loans taken for the purchase or construction of a house.

When was the PMAY scheme launched by the government?

The PMAY scheme was introduced by the Honourable Prime Minister Shri Narendra Modi on Jun 17, 2015.

Who can avail the Pradhan Mantri Awas Yojana – Credit Linked Subsidy Scheme (PMAY-CLSS)?

Any individual belonging to the EWS / LIG / MIG can apply for the Pradhan Mantri Awas Yojana – Credit Linked Subsidy Scheme (PMAY-CLSS).

  • Economically Weaker Sections (EWS), with an annual household income not more than Rs 3 lakh
  • Low Income Groups (LIG), with an annual household income not more than Rs 6 lakh
  • Mid-Income Groups (MIG), with an annual household income between Rs 6 Lakh to Rs 18 lakh.
How will I receive the benefit of the interest subsidy under the Credit Linked Subsidy Scheme (CLSS) of PMAY?
  • Once you submit the application for the interest subsidy benefit, the Bank will forward your application to the National Housing Bank (NHB)
  • The NHB will conduct an assessment and exclude claims where a customer has submitted multiple requests
  • For all PMAY eligible borrowers, the subsidy amount is paid to the Bank
  • Once the Bank receives an interest subsidy, the amount is credited to the borrower’s loan account.

For instance: If an MIG borrower has purchased a Home Loan of Rs 8 lakh and the interest subsidy applicable on the loan amount is Rs 2,20,000, the subsidy amount would be deducted from the loan amount (Rs 8 lakhs) and the EMI will be applicable on the reduced loan amount, which is Rs 5,80,000.

What are the categories of customer profiles for which the subsidy under the PMAY scheme is applicable?

Both salaried and self-employed customers are applicable customer profiles under the PMAY- CLSS scheme.

What is the maximum tenure for which the subsidy under the PMAY scheme is applicable?

The loan under the Pradhan Mantri Awas Yojana – CLSSS is available for a tenure of 20 years.

How will my eligibility for a loan be assessed?

The PMAY loan eligibility is assessed based on the internal guidelines and processes of the ICICI Bank. You can use the Pradhan Mantri Awas Yojana Calculator to assess the subsidy loan amount. The borrower will be required to produce documents for the PMAY scheme, including ID proof, Address proof, income documents and existing loan details, among others. PAN Card issued in India is no longer considered a valid proof of identity.

Is there any limit on the amount of loan that can be borrowed through the Credit Linked Subsidy Scheme (CLSS) under PMAY?

No. There is no limit on the amount of loan that can be borrowed through CLSS under the PMAY scheme.

Where can I apply for a Credit Linked Subsidy Scheme (CLSS)?

You can apply for CLSS with ICICI Bank, by following the steps below:

  • Click here (https://www.icicibank.com/managed-assets/docs/personal/loans/pmay-self-declaration.pdf), to download the self-declaration form
  • Fill the self-declaration form, and submit the same at any ICICI Bank that is nearest to you
  • Carry original documents of your proof of ID. PAN Card issued in India is no longer considered a valid proof of identity.
  • An Aadhaar number is mandatory to avail the subsidy. We request you to carry the original Aadhaar Card of all the members in your family.
Are there any additional eligibility norms apart from income, first pucca house and carpet area norms?

Apart from conditions like the first pucca house and carpet area norms, the property will be entitled for interest subsidy, if it satisfies the basic amenity requirements, such as water, sanitation, sewerage, road, electricity etc.

What is the applicable interest subsidy and the loan amount for the Pradhan Mantri Awas Yojana?

For EWS / LIG income group category, the Home Loan interest subsidy offered is 6.50% p.a. on the loan amount of up to Rs 6 lakh. For the MIG I and MIG II income group category, the interest subsidy is 4% p.a. and 3% p.a. on the maximum loan amount of Rs 9 lakh and Rs 12 lakh, respectively.

What are the income norms for EWS and LIG categories?

To meet the PMAY eligibility, beneficiaries falling under EWS and MIG income groups should meet following the income norms:

  • EWS households/individuals, with an annual income up to Rs 3.00 lakh
  • LIG households/individuals, with an annual income more than Rs 3.00 lakh and up to Rs 6.00 lakh
  • MIG I households/individuals, with an annual income more than Rs 6.00 lakh and up to Rs 12.00 lakh
  • MIG II households/individuals, with an annual income more than Rs 12.00 lakh to INR 18.00 lakh
What is the size of dwelling units under the Credit Linked Subsidy Scheme under Pradhan Mantri Awas Yojana?

The EWS / LIG / MIG applicants can apply for Credit Linked Subsidy Scheme under the Pradhan Mantri Awas Yojana for the purchase / construction / extension / refurbishment of a house. The size of dwelling units should be as below, as per different categories:

  • EWS / LIG: The carpet area should be up to 30 sq. mts., but not extending beyond 60 sq. mts.
  • MIG I: The carpet area should be 160 sq. mts.
  • MIG II: The carpet area should be 200 sq. mts.
Do I have to give any additional documents to avail the Pradhan Mantri Awas Yojana subsidy?

No. There is no requirement for submitting additional documents to apply for the Pradhan Mantri Awas Yojana subsidy.

Is it mandatory to fetch Aadhaar Card details for all the members of the beneficiary family?

Yes. For all schemes, the Aadhaar Card is mandatory. If you are qualified for the PMAY CLSS for MIG I and MIG II schemes, it is necessary to provide Aadhaar Card details of all the family members.

I have a small business; can I avail a Home Loan under the Pradhan Mantri Awas Yojana?

Yes. If you fall under any of the EWS / LIG / MIG categories, you can apply for a Home Loan under the PMAY scheme.

Sources

https://pmayuclap.gov.in/content/html/CLSS_Vertical.html

Terms and Conditions apply.

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