About the initiative
Our honourable Prime Minister Mr. Modi launched Pradhan Mantri Awas Yojana on 25th June, 2015 with a mission to provide “Housing for All” by 2022. One of the most prominent verticals of the PMAY Yojana is Credit Linked Subsidy Scheme (CLSS). This scheme would benefit EWS / LIG households earning up to Rs 6 lakh per annum who are first time home buyers.
A new CLSS scheme for the “Middle Income Group” has also been launched as CLSS-MIG, w.e.f from 01.01.2017. This will bring a huge chunk of young population under this scheme. Now MIG customers with annual income greater than Rs. 6 lakh also can avail of the PMAY subsidy. There are 2 sub categories that are created as MIG1 (Annual income Rs. 6,00,001 to 12,00,000) and MIG2 (Annual income Rs. 12,00,001 to 18,00,000).
What are benefits under the subsidy?
The beneficiaries under the PMAY – CLSS (EWS /LIG) scheme would be eligible for a subsidy of up to Rs.2,67,000 on their home loan. Under CLSS – MIG, max subsidy for MIG1 – is Rs. 2,35,068 & Max subsidy for MIG2 – is Rs. 2,30,156.
For example, if you take a home loan of Rs.10,00,000 and the subsidy amount sums up to be Rs. 2,67,000. The amount of Rs. 2,67,000 would be reduced from your loan amount (10,00,000 – 2,67,000) i.e. your balance repayable would be reduced to Rs. 7,33,000.
Kindly note that the subsidy amount may vary according to the loan amount & the guidelines set by NHB.
Who can avail the subsidy?
Simply put, first time home buyers can avail this subsidy. For your convenience, check the table given below:
|Househod Income Criteria (p.a.)||600,000||1,200,000||1,800,000|
|Max Loan Amount eligible for subsidy||600,000||900,000||1,800,000|
|Interest Subsidy Rate||6.50%||4.00%||3.00%|
|Loan Tenure for Subsidy (in yrs)||20||20||20|
|Area eligible for subsidy||60 sq Mt||120 sq Mt||150 sq Mt|
|Remarks for ownership of the house to avail subsidy||Family(i.e Self, spouse & unmarried children) should not have any pucca home|
Also, the house you buy/build using a loan with the subsidy should be in the name of the female head of the family.
-She can jointly own the house with the male head of the family
-The male head of the family can own the house if there is no female head
|Family(i.e Self, spouse & unmarried children) should not have any pucca home|
An unmarried earning son/daughter can also avail of the subsidy even if parents own a home
|PMAY Subsidy amount||₹ 267,280.00||₹ 235,068.00||₹ 230,156.00|
What are the documents required to apply for this subsidy?
No additional documents are required. You just have to submit a Declaration of not owning a pucca house. In case you don’t have income proof (salary slips, form 16 or ITR) you would be required to submit an affidavit declaring your annual family income.
Where can I apply for the subsidy?
You can apply for the subsidy on your home loan with us at HFFC. In case you have an ongoing home loan in some other bank or financial institution, you can transfer your home loan with us and avail the subsidy.
We at HFFC, have always been proactive to ensure that maximum customers avail the PMAY CLSS subsidy scheme and get benefitted. Till date, we have given away a subsidy amount of Rs. 334 crores to more than 14,100 customers.
Our motto has always been serving the under-served and we strive hard to spread some happiness!