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Overview

The Ministry of Housing and Urban Poverty Alleviation has launched a Credit Linked Subsidy Scheme (CLSS) under the Pradhan Mantri Awas Yojana (Urban) in June 2015.

The PMAY subsidy scheme is launched with an aim to provide housing to all eligible beneficiaries under Economical Weaker Sections (EWS), Lower Income Group (LIG), Middle Income Group I (MIG I), and Middle Income Group II (MIG II) by 2022. 

For those who qualify for PMAY but are wondering how to apply for PMAY online, here’s a step by step guide –

·         Identify your PMAY beneficiary category

·         Visit the government’s official website – https://pmaymis.gov.in/

·         Select ‘Citizen Assessment’ and then choose the relevant applicant category

·         Fill out the online PMAY application form

·         Enter the Captcha code, double-check your details, and click on ‘Submit.’

The beneficiary family comprises the husband, wife, and unmarried children.

(An adult earning member irrespective of their marital status can be treated as a separate household in MIG category and shall be considered under PMAY eligibility criteria). 

Wondering how to check Pradhan Mantri Awas Yojana status? You can check your PMAY status online in the following steps –

·         Visit the official government website –

·         Click on ‘Citizen Assessment,’ and under that, click on ‘Track Your Assessment.’

Your application status will be displayed. 

There is no such upper limit on the maximum PMAY loan principal that one can borrow; however, PMAY subsidy is only available up to a maximum amount of Rs. 12 lakhs. You can get to know your PMAY amount using online PMAY calculator.

No, those looking to avail PMAY for existing home loan do not qualify for the scheme. This is because the basic PMAY eligibility for home loan is that the applicant or anyone from their household must not own a ‘pucca’ house in their name anywhere across India.

The PMAY scheme is available for first-time homeowners. 

Yes, female ownership of the property is mandatory, but not for all beneficiary categories. The same is mandatory only for EWS and LIG categories, but not for the two MIG categories. 

Yes, tax exception on PMAY scheme is available for beneficiaries as per Section 80C and Section 24(b) of the Income Tax Act, 1961. An applicant is eligible for the following PMAY tax benefits –

·         Deductions of up to a maximum of Rs. 1.5 lakhs per annum on home loan principal outstanding

·         Deductions of up to a maximum of Rs. 2 lakhs per annum on the home loan interest amount 

Eligibility And Documents

An applicant must meet PMAY eligibility to avail the scheme. The following are the Pradhan Mantri Awas Yojana eligibility criteria –

·         The applicant or any other family member of their household must not own a ‘pucca’ house anywhere across India

·         The applicant’s annual household income must fall within any of the four beneficiary categories

·         The applicant or any other family member must not have availed central assistance under any housing scheme

·         The carpet area of the chosen property must meet the prescribed specifications for the respective category of the applicant 

The following are the different beneficiary categories under the Pradhan Mantri Awas Yojana –

·         Economically Weaker Section (EWS) – interest subsidy @6.5% up to a maximum loan amount of Rs. 6 lakhs

·         Lower Income Group (LIG) – Interest subsidy @6.5% for a maximum loan amount of Rs. 6 lakhs

·         Middle Income Group I (MIG I) – Interest subsidy @4% for a maximum loan amount of Rs. 9 lakhs

·         Middle Income Group II (MIG II) – Interest subsidy @3% for a maximum loan amount of Rs. 12 lakhs 

Yes, an NRI is eligible to avail PMAY subsidy provided they meet all the PMAY eligibility criteria as prescribed by the government. 

The Pradhan Mantri Awas Yojana documents required are as follows –

·         Age proof documents

·         Affidavit or self-declaration form, which proves that the applicant or their family does not own a ‘pucca’ house in the country

·         In case of property under construction, declaration for the same

·         Identity proof documents

·         Copy of address proof documents

·         Salary proof documents

·         Income proof documents

·         Existing loan details

·         Processing fee cheque

·         NOC from a relevant authority figure of any housing society 

Yes, Aadhaar Card Details are mandatory for PMAY. All applicants in the loan contract willing to avail benefit under PMAY Scheme must produce their Aadhar card details. If any applicant or co-applicant is married, Aadhar details of the spouse are also mandatory.

The PMAY self-declaration form or affidavit is a form which acts as a proof that the applicant meets all eligibility criteria for availing the scheme. The Pradhan Mantri Awas Yojana self-declaration form confirms that an applicant or any of their family members does not own any ‘pucca’ house in the country, has not availed central assistance under any housing scheme, and so on. 

No, PMAY (Urban) benefits can be extended only to towns/villages/cities that appear on the list of statutory towns as per Census 2011 and towns notified subsequently, including planning area provided by NHB.

Since no residential property is owned, PMAY benefits can be availed by the beneficiary family subject to fulfillment of Income and Property Area criteria.

No, you will not be eligible to avail the benefits of PMAY scheme in such a case. This is because one of the basic PMAY eligibility criteria is that the applicant or anyone from their household must not own a ‘pucca house’ anywhere across the country. 

PMAY Subsidy Scheme

PMAY Credit Linked Subsidy Scheme is available to all aspiring first-time homeowners provided they belong to the prescribed four beneficiary categories. These categories under PMAY CLSS are as follows –

·         Economically Weaker Section (EWS) – Annual household income below Rs. 3 lakhs

·         Lower Income Group (LIG) – Annual household income between Rs. 3 lakhs to Rs. 6 lakhs

·         Middle Income Group I (MIG I) – Annual household income between Rs. 6 lakhs to Rs. 12 lakhs

·         Middle Income Group II (MIG II) – Annual household income between Rs. 12 lakhs to Rs. 18 lakhs 

The maximum PMAY subsidy amount that one can be eligible for is Rs. 2, 67,280. 

The PMAY loan tenure is for a maximum of 20 years. Under the CLSS scheme, applicants are eligible to avail credit subsidy for a period of 20 years or for the actual tenure of the loan, whichever is lower. 

PMAY subsidy is credited upfront to the beneficiary’s account. This transfer of subsidy on home loan by government reduces the principal loan amount, and thereby, the Equal Monthly Instalment (EMI). You can calculate this EMI value using an online PMAY calculator

The customer needs to inform Tata Capital Housing Finance Ltd of his interest in applying for PMAY Subsidy at the time of home loan application or later. After the loan has been disbursed, Tata Capital Housing Finance Ltd. will send required details to NHB, which in turn shall conduct a series of checks, and if found eligible, shall approve subsidy to the customer. 

The following process will be followed to release subsidy to the beneficiary -

·         Tata Capital Housing Finance Ltd. shall claim subsidy for eligible borrowers from National Housing Bank (NHB)

·         NHB shall conduct a thorough due diligence and approve/release subsidy to Tata Capital Housing Finance Ltd. For the PMAY eligibility of borrowers based on disbursements made to the customer

·         Subsidy disbursed by NHB to Tata Capital Housing Finance Ltd. will be credited upfront to customer’s account against principal. Thus, the borrower will pay EMI on the remaining outstanding principal.

No, CLSS benefit cannot be availed for the purchase of commercial or non-residential property, but only for the purchase of residential property.

Yes, the Prime Minister Awas Yojana rural scheme is available for those who wish to become first-time homeowners in the rural areas. PMAY for rural areas is commonly known as the Pradhan Mantri Awas Yojana Gramin or PMAY (G). 

PMAY Calculator

There are primarily two ways to calculate subsidy on PMAY – the first is manual calculation, which is rather a tedious and often error-prone process. The other method is to use an online PMAY subsidy calculator. By using a home loan subsidy calculator for PMAY, you can get accurate results at lightning speed. 

The amount of home loan subsidy differs based on PMAY eligibility categories. The following are the PMAY subsidy amount under the four PMAY categories –

·         Economically Weaker Section (EWS) – Rs. 2.67 lakhs

·         Lower Income Group (LIG) – Rs. 2.67 lakhs

·         Middle Income Group I (MIG I) – Rs. 2.35 lakhs

·         Middle Income Group II (MIG II) – Rs. 2.30 lakhs 

Yes, you can pre-pay your housing loan after receiving PMAY subsidy based on the terms and conditions for pre-payment of your lending institution.

Though prepayment of housing loan under PMAY, either in part or full is allowed, it is subject to the following conditions –

·         You need a written approval in advance from your lending institution.

·         You need to consider and pay pre-payment charges involved.

·         You need to consider the pre-payment limit set by your lending authority. 

To avail the scheme, an applicant must belong to any of the prescribed Pradhan Mantri Awas Yojana income slabs. The following are the PMAY income slabs for households as dictated by the central government –

·         Economically Weaker Section (EWS) – Below Rs. 3 lakhs

·         Lower Income Group (LIG) – Rs. 3 lakhs - Rs. 6 lakhs

·         Middle Income Group I (MIG I) – Rs. 6 lakhs - Rs. 12 lakhs

·         Middle Income Group II (MIG II) – Rs. 12 lakhs - Rs. 18 lakhs 

No, as per the PMAY value guidelines issued by the Ministry of Housing and Urban Poverty Alleviation, there is no capping on the minimum or maximum PMAY property value for either of the beneficiary categories.