If you are looking at buying a house under the government's Pradhan Mantri Awas Yojana (PMAY), you can consider buying it under the Credit Linked Subsidy Scheme (CLSS). The government has extended the deadline for the affordable housing CLSS till March 31, 2021.
- What is Pradhan Mantri Awas Yojana?
Pradhan Mantri Awas Yojana (Urban) for ensuring housing for all in urban areas was launched on 25th June 2015 providing pucca houses to all eligible beneficiaries by 2022.
- What is Credit Linked Subsidy Scheme (CLSS)?
The Credit Linked Subsidy Scheme (CLSS) for Middle Income Group (MIG) to be called CLSS for MIG I and MIG II was initially approved for implementation for the year 2017. The scheme extended up to March 2020 for the first time and then the government, on May 14, 2020, announced the further extension of the deadline for the affordable housing CLSS scheme for one year, that is, till March 2021.Under the scheme, the interest subsidy up to 2.67 lakh per house is admissible for beneficiaries of Economically Weaker Section (EWS)/Low Income Group (LIG), Middle Income Group (MIG)-I and Middle Income Group (MIG)-II seeking housing loans.
- Who are all eligible under the PMAY scheme?
The scheme is primarily aimed at providing housing for all. Therefore, understandably, all those who already own a home or any of their family member own a home, are kept out of the benefits of PMAY.The rule says, "The beneficiary family should not own a pucca house and the beneficiary family should not have availed of central assistance under any housing scheme from Government of India." A beneficiary family will comprise of husband, wife, unmarried sons and/or unmarried daughters.
To avoid duplication, beneficiary family members have to provide their Aadhaar numbers while applying for the loan.But, as per the guidelines, "An adult earning member (irrespective of marital status) can be treated as a separate household, provided that he/she does not own a pucca (an all weather dwelling unit) house in his / her name in any part of India."So, even if children (married or unmarried) are staying with their parents in a house owned by the parents (or on rent, in the same or another city), they can opt for PMAY provided they are earning and don't own any other home.In the case of a married couple living on rent and even if their parents own a home, will anyhow is treated as a separate household. However, if they wish to avail PMAY benefits, they will be eligible for a single house.
- What are the criteria for EWS LIG MIG categories for the purpose of the scheme
EWS households with an annual income upto Rs 3 lakh. LIG households with an annual income between Rs 3 lakh to Rs 6 lakh.MIG I households with an annual income between Rs 6 lakh to Rs 12 lakh. MIG II households with an annual income between Rs 12 lakh to Rs 18 lakh.
- How much interest subsidies one can get?
The interest subsidies of 4 per cent and 3 per cent on loan amount up to Rs 9 lakh and Rs 12 lakh are admissible for MIG I and MIG II respectively. The benefit for these beneficiaries under CLSS works out a loan period of 20 years.
- How does the scheme work
For instance, someone in the MIG II category, wants to buy a house costing Rs 60 lakh. After the mandatory minimum down payment of 20 percent i.e. Rs 12 lakh, the balance of Rs 48 lakh can be arranged through a loan. But under PMAY, a subsidy of 3 percent would be applicable till Rs 12 lakh, hence, the lender's home loan interest rate will be applicable on the balance of Rs 36 lakh.
- What is the definition of carpet area?
The area enclosed within the walls, actual area to lay the carpet. This area does not include the thickness of the inner walls.
- How much carpet area will you get under the scheme?
Under PMAY - CLSS, the area of the house is different for all categories but it's the carpet area that is to be looked at. The carpet area of houses eligible for interest subsidy under the CLSS for the MIG under PMAY (Urban) in respect of MIG I is up to 160 square metre” and, in respect of MIG II from to 200 square metre.
- Can a beneficiary avail the benefit under more than one component?
No. Under the PMAY scheme, a beneficiary can avail of benefit of one component only.
- Will a person having a plot without any construction be an eligible beneficiary?
Yes, the beneficiary can be covered under subsidy for beneficiary led individual house construction scheme, if he/she is eligible under the scheme.
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2 Comments on this Story
Sandeep Dhumal6 days ago
Is this scheme applicable for those who wants build the house on their own, instead of having flat from builders lobby ???
jum wong39 days ago
GET YOUR BLANK ATM CARD