Since the government of India announced the Pradhan Mantri Awas Yojana in June 2015, the affordable housing scheme has benefited thousands of people. One of the most ambitious initiatives, under the scheme, the government aims to provide a permanent housing unit to all citizens by March 2022.
In line with the scheme objective, the government aims to build more than two crore new affordable housing units across different cities and rural areas. Apart from building new houses, the government also aims to make homeownership affordable for the Indian citizens, especially those belonging to the EWS (economically weaker sections) and LIG (low-income groups) of the society by offering them interest subsidies on home loans.
The interest subsidy on loans is covered under the CLSS (Credit Linked Subsidy Scheme), which is an inherent part of the PMAY initiative. However, to ensure that all citizens get maximum benefit of the subsidy, the government has set specific eligibility requirements, which are listed below.
- You or any of your family members must not own a pucca house in any part of India. If you already own a home, your PMAY subsidy application will be rejected.
- If you are applying for the subsidy under the EWS or LIG, your total income should not be more than 3 lakhs and 6 lakhs respectively.
- You must have a valid Aadhaar Card.
- You can apply for the subsidy as an individual or opt for a joint home loan with your family members, including spouse, unmarried children, parents, or siblings.
How to get the subsidy?
There are two ways to apply for a PMAY subsidy – online or offline. Let us look at the steps to apply for the subsidy.
- Log onto www.pmayis.gov.in
- Click on the citizen assessment option and choose one of the two options – ‘benefit under 3 components’ and ‘for slum dwellers’ that is relevant to you from the drop-down menu.
- You would be directed to a new page where you must enter the Aadhaar card details. Once you enter the number, the next step is filling the application form.
- After you fill the form make sure that you check the details again before submitting it. Once you submit, you will get an assessment ID. Keep this safe for future reference and application status tracking purpose.
You must visit the nearest CSC (Common Service Centre) and fill the subsidy form along with the relevant KYC documents there. The form is available for Rs. 25 plus GST.
After you have submitted the PMAY subsidy form, you can apply for the home loan with any lender of your choice that is authorised to extend the subsidy benefits.
Once your loan is approved by the lender, they will forward your PMAY application to the concerned authorities for verification and approval on your behalf.
If the government approves the subsidy, based on your income category, they will credit the subsidy amount directly in your loan account. Once you receive the amount, the lender will adjust the EMI.
If you are looking to purchase a new home and avail a home loan for it, make sure that you ask the lender about the PMAY subsidy and avail the same. This will make the repayment easier.