Pradhan Mantri Awas Yojana PMAY
The Government of India often comes up with various schemes and plans that would enhance and uplift the living standards of its people. This ranges to the rural and even urban parts of the country spread across various states. The Central Government often forms a tie-up with the State Governments such that it is ensured that these schemes are implemented with effectiveness and the same reaches all those families or individuals or persons who are eligible to receive the same without any failure. For this, it is vital there is a proper and strong network and system established between the Central Government and its authorities along with multiple State Governments and the local authorities coming below the same.
The Pradhan Mantri Awas Yojana is one such scheme and is the major point of discussion under this article.
Pradhan Mantri Awas Yojana (PMAY)
It is a scheme which was brought in by the Government was a Housing for All scheme which is a mission launched by the Government of India. The major aim behind this was to give homeownership to all citizens by the year of 2022. There was a major credit scheme brought in under this mission, which is a subsidy scheme named Credit Linked Subsidy Scheme or CLSS. It provides the eligible persons with interest subsidy on the loans taken for the construction of home. This can also be taken for purchase or extension or even the renovation and improvement of the existing house.
The scheme is majorly aiming for this housing for all mission on the economically weaker sections (EWS) of the society or the persons belonging to the low-income group and also the middle-income groups of the society. This is arising out of the fact that there is a highly projected growth in the urbanization of India and this, in turn, is increasing the pressure and demand to own houses by the people of the country.
Credit Linked Subsidy Scheme (CLSS)
Credit Linked Subsidy Scheme or CLSS is a benefit that is offered under the PMAY scheme. This enables the economically weaker sections; the middle-income group and low-income group can avail of home loans for construction or purchase or improvement or renovation of the house. But they can enjoy a lower EMI (Equated Monthly Instalments) which is made available with the help of an interest subsidy given.
According to this benefit, the interest subsidy amount will be credited to the account of the beneficiary upfront on the principal amount. This would then bring down the EMI to be paid back by the person with respect to the home loan taken. This would make the home loan an affordable one to the individual as the outflow of their earning on monthly basis for repayment of the loan would be lowest to the possible extent. And this subsidy amount granted shall depend on the income group to which the person belongs and also the size of the property or unit which is used for financing the home loan.
Features of PMAY
– There shall be the availability of customized loan repayment schemes to the person availing such loan.
– The process is simple as free documentation and processing shall be provided by various banks in the country.
– Interest subsidy benefit ensured to the economically weaker sections or low-income group or medium-income group on the basis of the income and also the property or unit size used for availing the loan.
Benefits under PMAY CLSS Scheme based on Category of Income
The benefits available under the PMAY Scheme shall be as follows:
CLSS EWS or LIG (Lower-Income Group) Scheme
The persons with annual household income above INR 3 Lakhs but below INR 6 Lakhs shall fall in this category. The maximum subsidy available to this person belonging to the economically weaker sections and a low-income group of the society shall be 6.5%, and it should also be ensured that the property and the unit which is being purchased or constructed is not exceeding a carpet area of 60 square meters which is 645 square feet (Approximately). The limit of the loan amount on which interest subsidy shall be available would-be INR 6 Lakhs.
CLSS MIG (Middle-Income Group) 1 Scheme
MIG 1 or the Middle-Income Group is to include the persons earning an annual household income above INR 6 Lakhs but not above INR 12 Lakhs. The interest subsidy which shall be made available to the person here would be 4% and for this, it shall also be ensured that the unit which is being constructed or purchased by the person is not exceeding the carpet area of 160 square meters or 1722 square feet (Approximately). The limit of the loan amount for availing this benefit shall be limited to INR 9 Lakhs with the tenure of the home loan being 20 years.
CLSS MIG 2 Scheme
Under MIG 2, the annual household income of the applicant should be above INR 12 lakh but not above INR 18 Lakhs. The maximum interest which would be made available to such person shall be 3%. And the carpet area of the unit being constructed or purchased here should not exceed 200 square meters or 2150square feet (Approximately). The limit of the loan amount for availing this would be INR 12 Lakhs with the tenure of the home loan being 20 years.
Eligibility of PMAY
The eligibility criteria shall include:
– If the applicant is a married couple, either of them alone or together holding the ownership on a joint basis shall be eligible to avail the subsidy and this shall be single.
– The applicant or the beneficiary should only have a maximum annual household income of INR 18 Lakhs for availing the benefit under this scheme.
– The applicant or the prospective beneficiary shall not be owning a pucca house in his or her name or the family member’s name anywhere in India.
– The applicant should also not have availed any housing benefit from the Central Government under this scheme or any other scheme before.
Additional Points to be Considered
The following additional points shall be considered:
– It shall also be noted that for the PMAY the beneficiary family shall include, husband, wife, and their unmarried children.
– And under the MIG category, the case of an adult who is earning but single can also be considered as a separate household for availing this benefit.
– The Aadhar Number of the beneficiary, and his family members shall be considered mandatory for availing of the scheme.
– The maximum loan tenure allowed for availing PMAY benefit shall be 20 years or such other lower loan tenure.
– Any additional loan if availed by the beneficiary above the specified limit, then the interest rate applicable shall be the non-subsidized one.