Read More About CLSS Scheme of PMAY
CLSS & PMAY- Know about the different schemes of Credit Linked Subsidy Scheme before going for your first home loan. Read IIFL Finance Blogs to know the CLSS scheme of Pradhan Mantri Awas Yojna.
Are You a First Time Home Buyer?
Do you know you can be eligible for subsidy upto Rs 2.67 lac from the government on your home loans under Pradhan Mantri Awas Yojana (PMAY)?
Yes, you can turn your dreams into reality many others who were trying for years to own their house and now it has become a reality. Thanks to subsidy under Credit Linked Subsidy Scheme (CLSS)!!
Let’s do some homework before applying for PMAY subsidy:
Ensure that you should not have availed of central assistance under any housing Scheme from Government of India including PMAY – Housing For All by 2022 mission.
Ensure the Bank/Housing Finance Company/Financial institution from which you are obtaining loan has executed MOU with either National Housing Bank (NHB) or Housing & Urban Development Corporation (HUDCO). List of HFCs/Banks/FIs who have executed MOU under EWS/LIG Scheme may be accessed from the below.
Incase you already have a home loan, then check that the same is sanctioned and disbursed after June 17, 2015 for entitlement under EWS/LIG category. For MIG, the loan shall be sanctioned on or after January 01, 2017.
Ensure that all adult members of household have Adhaar. Without Aadhar of any of the household members, case cannot be processed for subsidy.
Affidavit cum undertaking/self certification as per practice of Primary Lending Institution (PLI)/Financial Institution (FI) may be required.
Shortlist the Financial Institution having good track record in providing Subsidy through Market sources.
You may fall within any of the three schemes based on your annual household Income and avail subsidy, accordingly.
- 1. EWS/LIG
- 2.MIG I
- 3.MIG II
EWS/LIG Scheme eligibility Criteria
1.Annual Household Income* shall be less than Rs. 6 Lakhs
2.Female ownership in property to be purchased is mandatory. Exception: In case where there is no adult female member in the household and in case the household already owns a residential plot prior to June 17, 2015 and intends to construct a dwelling unit/house, female ownership is not mandatory.
3.Household/beneficiary family shall not own a pucca house anywhere in India.
4.Property shall fall within Urban Area as specified by the govt. A list of 4315 towns has been identified as per 2011 census.
MIG I & MIG II Scheme eligibility Criteria
1.Annual Household Income* shall be Rs. 6-12 lakhs for MIG I & Rs. 12-18 lakhs for MIG II.
2.Female ownership is not mandatory, however, advisable which means that in case female is not an owner or co-owner in the property, then also the case would be eligible for subsidy subject to fulfillment of other conditions.
3.Household/beneficiary family shall not own a pucca house anywhere in India.
4.Carpet Area of property purchased or to be purchased shall not exceed 120 sqmtrs in case of MIG 1 and 150 sqmtrs in case of MIG II.
5.Property shall fall within Urban Area as specified by the govt. A list of 4315 towns has been identified as per 2011 census.
List of all such PLIs executed MOU for implementation of MIG schemes may be accessed from below link. http://www.mhupa.gov.in/writereaddata/MIG_PLIs_aug.pdf
* Household/Beneficiary Family means and includes husband, wife and unmarried children. An adult earning member (irrespective of its marital status be considered as separate household)
How much amount of subsidy are you entitled to? Considering the maximum loan tenor of 20 years and loan amount of 20 lakhs under all three schemes maximum subsidy is as under:
- EWS/LIG – Rs. 2.67 Lakhs
- MIG I – Rs. 2.35 Lakhs
- MIG II – Rs. 2.30 Lakhs
It must be noted that effective Home Loan rate is calculated after deducting subsidy of Rs. 2.67 Lac under PMAY - CLSS on a loan amount of Rs. 20 Lac for 20 years loan tenure.
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