HomeLAWS & SCHEMESGovernment SchemesPradhan Mantri Awas Yojana (PMAY) Scheme | CLSS Extension Update

Pradhan Mantri Awas Yojana (PMAY) Scheme | CLSS Extension Update

The Pradhan Mantri Awas Yojana (PMAY) scheme was introduced by PM Narendra Modi in June 2015. The PMAY scheme is the government’s initiative to provide affordable housing to the urban poor. Thus, by the year 2022, the scheme aims to give affordable housing to all. This scheme will aim to build inexpensive houses in some cities and towns. These houses will additionally be made using eco-friendly methods. Under this scheme, people will also be able to avail a loan at a subsidized interest rate to either purchase a house/flat, construct a house or even make an enhancement to current house, such as a kitchen, room or washroom. Only a family of father, mother and unmarried dependent kids are eligible as a family to take this scheme.

Eligibility criteria for PMAY scheme

1. Economically Weaker Section (EWS)

  • The annual income of the family is up to Rs 3 lakh.
  • In case of purchasing or making a new house, the house owner has to be a female and not male.
  • If an extension is being made in the existing house, then the house owner can be a male.
  • There must not be any other pucca house owned in your family previously.
  • You are eligible for a home loan of up to Rs 6 lakh, for a maximum of 20 years, at a subsidized interest rate of 6.5%.
  • The beneficiary will receive either 6.5% of his loan amount or Rs 2,67,000, whichever is lower.
  • Maximum benefit eligibility is Rs 2,67,000.
  • A maximum of 30 sq mt area of the house is given.
  • The last date for application is 31st March 2022.

2. Low Income Group (LIG)

  • The annual income of the family is between Rs 3-6 lakh.
  • In case of purchasing or making a new house, the house owner has to be a female and not male.
  • If an extension is being made in the existing house, then the house owner can be a male.
  • There must not be any other pucca house owned in your family previously.
  • You are eligible for a home loan of up to Rs 6 lakh, for a maximum of 20 years, at a subsidized interest rate of 6.5%.
  • The beneficiary will receive either 6.5% of his loan amount or Rs 2,67,000, whichever is lower.
  • Maximum benefit eligibility is Rs 2,67,000.
  • A maximum of 60 sq mt area of the house is given.
  • The last date for application is 31st March 2022.

3. Middle Income Group (MIG)

Middle Income Group – 1

  • The annual income of the family is between Rs 6-12 lakh.
  • The beneficiary is eligible for a subsidized loan of up to Rs 9 lakh, for maximum 20 years, at 4% p.a.
  • Again, the beneficiary will receive either 4% of his loan or Rs 2,35,000, whichever is lower.
  • A maximum of 120 sq mt area of the house is given.
  • The last date for application is 13th March 2020.

Middle Income Group – 2

  • The annual income of the family is between Rs 12-18 lakh.
  • The beneficiary is eligible for a subsidized loan of up to Rs 12 lakh, for maximum 20 years, at 3% p.a.
  • Again, the beneficiary will receive either 4% of his loan or Rs 2,30,000, whichever is lower.
  • A maximum of 200 sq mt area of the house is given.
  • The last date for application is 13th March 2020.

How does the benefit of PMAY scheme work?

  • For instance, the cost of the house is Rs 20 lakh. You make a down payment of Rs 4 lakh and take out a loan for Rs 16 lakh. The bank will give you a subsidy only on Rs 6 lakh of this loan. The EMI of the remaining Rs 10 lakh has to be made in the regular bank interest rate.
  • Additionally, the subsidy on the loan interest is only applicable for a maximum of 20 years. If your loan extends further, then the interest for the remaining years will be the regular bank interest rate.
  • The beneficiary will receive either 6.5% of his loan amount or Rs 2,67,000, whichever is lower. This amount will be credited to the beneficiary’s bank account. This amount will then be deducted from the total loan amount plus interest. Beneficiary will have to repay the remaining amount at the normal interest rate but less EMI.

How to apply for PMAY scheme?

  • Visit your nearest bank.
  • Give an affidavit to prove your family’s income bracket.
  • Also, give proof that your family did not own any pucca houses before this.
  • Provide sq mt details of the flat you want to purchase, as proof that it falls under your eligibility criteria.
  • Once the bank officials conduct their inspection and validate all your documents, then you can receive the loan under PMAY scheme.
  • Else, you can visit this website and fill out the form to apply for PMAY scheme.
pmay scheme

Watch our video on PMAY scheme below.

CLSS Extension – Aatma Nirbhar Bharat Plan

On 12th May 2020, PM Narendra Modi announced a Rs 20 lakh crore relief package under the Aatma Nirbhar Bharat plan. This was related to the ongoing coronavirus lockdown which had led to many financial hardships across the country. FM Nirmala Sitharaman went on to detail some update regarding PMAY amid the Aatma Nirbhar Bharat plan. These updates came on 14th May 2020. They gave new updates regarding Credit Linked Subsidy Scheme (CLSS).

What is the PMAY CLSS scheme?

  • CLSS is one of the main components under PMAY scheme.
  • It provides subsidy on housing loans.
  • Furthermore, it is available for lower middle class and middle-class categories of citizens. On purchase or construction of a house.

Who is eligible for CLSS?

Only MIG 1 and MIG 2 groups qualify for PMAY CLSS scheme. Further details on income categorizations are given above.

pmay scheme

Subsidy calculation

  • MIG 1 –
    • Are eligible for a subsidy loan of up to Rs 9 lakh.
    • Subsidy tenure will be 20 years maximum.
    • The subsidy amount will either be 4% of loan amount or Rs 2,35,000, whichever is lower.
    • The maximum carpet area allowed for the house is 120 sq mt.
  • MIG 2 –
    • Are eligible for a subsidy loan of up to Rs 12 lakh.
    • Subsidy tenure will be 20 years maximum.
    • The subsidy amount will either be 3% of loan amount or Rs 2,30,000, whichever is lower.
    • The maximum carpet area allowed for the house is 200 sq mt.
pmay scheme

Aatma Nirbhar Bharat plan relief

Under the Aatma Nirbhar Bharat plan, the following relief is now given to people applying for PMAY scheme:

  • The earlier deadline for PMAY scheme was 31st March 2020. This has now been extended to 31st March 2021.
  • But this is only applicable for people under MIG 1 and MIG 2 categories. EWS and LIG categories are not eligible for this scheme.
  • This scheme is projected to benefit around 2.5 lakh families.
  • Simultaneously, it will lead to an extended budget of Rs 70,000 crore.

Apply for this loan with the steps given above. Watch our video on this new CLSS update below.

Also read, Pradhan Mantri Shram Yogi Maandhan (PMSYM) Yojana | Pension Scheme Details.

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Heena Siddique
Heena Siddique
Bibliophile. Turophile. Foodie. Tea enthusiast. Shopaholic. Sitcom addict. Movie buff.

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