How to get Subsidy for Housing Loan ?

The Pradhan Mantri Awas Yojana was introduced  by the Government of India with the aim that every Indian household should have a pucca house by 2022. Under the scheme, home loan interest subsidy can be availed by individuals if they meet the necessary criteria under the Credit Linked Subsidy Scheme (CLSS).

The objective of this scheme was to ensure the availability of Housing loan to individuals from Economically weaker sections (EWS) & low income group category at attractive rates.

Credit Linked Subsidy Scheme (CLSS) is a government scheme launched with an aim to make buying home easier for:

  • Economically Weaker Section (EWS)
  • Low Income Group (LIG)
  • Middle-Income Group 1 (MIG-I)
  • Middle-Income Group 2 (MIG-II)

Under the Credit Link Subsidy Scheme or CLSS of PMAY, subsidy up to 6.5% can be availed on the interest rate of the home loan.

ELIGIBILITY CRITERIA TO AVAIL SUBSIDY UNDER THIS SCHEME

  • The applicants must not own any pucca house anywhere in the country.
  • The annual household income of any applicant must not cross Rs 18 Lakh.
  • The beneficiary families should not have benefited under any government housing scheme including PMAY.
  • The deed or property paper must include the name of a female member of the family. Joint ownership with a female member is eligible as well.
  • The carpet area of the house should be 30 sqm for EWS beneficiaries, 60 sqm for LIG beneficiaries, 160 sqm for MIG – I beneficiaries, and 200 sqm for MIG – II beneficiaries

PROCESS TO AVAIL SUBSIDY FOR HOUSING LOAN

Eligible applicants can directly apply for a home loan under CLSS with the Prime Lending Institutions such as NBFC’s ,cooperative banks, regional rural banks, and others who have partnered with the central nodal agencies to offer subsidised rates on housing loans.

The process to claim PMAY interest subsidy benefit is given as follows:

  1. After the home loan is disbursed, the lender will send the required details to the National Housing Bank (NHB) for data validation and other checks.
  2. NHB after due diligence approves the subsidy to eligible borrowers.
  3. The subsidy amount will be disbursed to the lender for all eligible borrowers.
  4. On receiving the subsidy amount from NHB, the lender will credit the same to the respective home loan account of the borrower and will be adjusted in the loan accordingly.

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