Pradhan Mantri Awas Yojana (PMAY) - Credit Linked Subsidy Scheme

Pradhan Mantri Awas Yojana – Credit Linked Subsidy Scheme (PMAY-CLSS) is a scheme launched by our Honourable Prime Minister Shri Narendra Modi for customers belonging to Economically Weaker Section (EWS), Low Income Group (LIG), and Middle Income Group (MIG-I & MIG-II).

The beneficiary would be eligible for interest subsidy on purchase/ construction/ extension/ improvement of a house.

The beneficiary family should meet the following conditions in order to be eligible for Credit Linked Subsidy Scheme (CLSS) under PMAY:

• Beneficiary should be a family comprising of husband, wife and unmarried children
• Beneficiary can also be an unmarried individual earning member of the family
• Beneficiary should not own a pucca house either in his/her name or in the name of any member of his/her family in any part of India
• Beneficiary should be meeting income criteria defined as per various categories under the scheme
• Beneficiary should not have received central assistance under the mission, “Housing for all by 2022”
• For beneficiaries belonging to EWS and LIG categories, woman ownership is mandatory in the property under consideration for all cases except in cases where the land is already owned prior to 17 June 2015 by the customer and loan is availed only for self-construction of a house over the self-owned land
• The property must have basic trunk infrastructure such as water supply, electricity supply and drainage/sanitation facility

Note: As per the amendment in guidelines, the definition of ‘beneficiary’ was broadened to include an adult earning member (irrespective of marital status) subject to certain provisos, making him/her eligible to apply of PMAY-Urban under CLSS for MIG scheme effective from 01 January 2017. Subsequently, this definition of 'beneficiary' was also made applicable to entire PMAY-Urban scheme w.e.f. 27 June 2017.

The bank will claim subsidy benefit for eligible borrowers from National Housing Bank (NHB). The NHB will conduct a due diligence to exclude claims where customer has submitted multiple requests.

For all eligible borrowers, the subsidy amount would be paid to the bank. Once the bank receives the interest subsidy, it will be credited upfront to the loan account. The subsidy will be calculated on Net Present Value (NPV) at 9% discount rate.

E.g., the borrower avails a loan for Rs. 8 Lakh and the subsidy works out to Rs. 2,20,000. The amount (Rs. 2,20,000) would be reduced upfront from the loan (i.e., the loan would reduce to Rs. 5,80,000) and the borrower would pay EMIs on the reduced amount of Rs. 5,80,000.

Note: The above example is for illustration purpose only and the subsidy* amount will depend on the actual amount received or any changes done by NHB on the same.

Yes, this rate is applicable only for first-time pucca home buyers as per PMAY criteria.

Pradhan Mantri Awas Yojana is available for salaried as well as self-employed customers.

The Pradhan Mantri Awas Yojana is applicable for a maximum considered tenure of 20 years.

The loan eligibility of the applicant will be assessed based on internal guidelines and processes of the bank as amended from time to time.

As per the extant requirement, the borrower will be required to submit income documents like, salary slip, ITR, bank statement, existing loan details etc. for the purpose of eligibility assessment.

No, there is no loan amount limit for loan accounts which are booked under PMAY-CLSS scheme.