How to Avail Home Loan Subsidy under PMAY in 2021?

How to Avail Home Loan Subsidy under PMAY in 2021?

The central government’s announcement for ‘Housing for all by the year 2022’ clubbed with the PMAY (Pradhan Mantri Awas Yojna) scheme aimed at EWS (Economically Weaker Sections), LIG (Lower Income Groups) and also on MIG (Middle Income Groups) of the Indian society.

Pradhan Mantri Awas Yojna can be divided into 4 integral sections – rehabilitation of the existing slum dwellers by using land through private partnership. Affordable housing via partnership, subsidy for the beneficiary supported home construction or/and enhancement and CLSS or Credit Linked Subsidy Scheme.

The government wants their urban population to have their own home, and thus, they encourage the prospective home applicants (particularly first-time buyers) to opt for the home loan from trustworthy lenders so that they avail of the home via a hassle-free process. In order to boost the process, the government has come up with CLSS. CLSS is one of the major components listed under PMAY, where the government provides home loan subsidies on interest to eligible applicants.

For availing of the home loan subsidy under the CLSS scheme, the applicant must not have a dwelling unit in her/his name or on a family member's name across the country. Additionally, the home loan applicant and their family members must not have taken up any central assistance under the housing scheme of the government to be eligible for this scheme.

Here, in this article, we will discuss home loan subsidy under the PMAY scheme, how one can check their home loan subsidy status, how to apply for home loan subsidy and a short brief on home loan subsidy calculator.

What is Home Loan Subsidy?

The central government of India launched the 'Pradhan Mantri Awas Yojana scheme' with the aim to provide homes to all Indian households not having a pucca home by the year 2022. As per the scheme, home loan interest subsidies are availed by those if they mitigate certain criteria. Home loan subsidy on interest gets provided as per CLSS (Credit Linked Subsidy Scheme).

What is Credit Linked Subsidy Scheme (CLSS)?

CLSS is one of the crucial components as per PMAY. As per this, the central government provides home loan subsidy on interest on the home loans taken up by applicants falling under the listed:

• Economically Weaker Sector or EWS/Low Income Group or LIG

As per the EWS or Economically Weaker Sections or LIG or Low Income Group, home loan subsidy on interest is offered at a 6.50% rate. Home loan subsidy on interest is provided in the course of loan tenure or for fifteen years based on whichever is lesser. The home loan subsidy on interest is provided for home loans of up to Rs 6 lakh, with the maximum subsidy amount being Rs 2.20 lakh.

• Revised Economically Weaker Section or EWS/Low Income Group or LIG

The interest subsidy as per revised LIG/EWS is provided at 6.5%. Subsidy gets offered for actual home loan tenure or for a 20 years period. The maximum loan amount for subsidy is up to Rs 6 lakh, with the maximum home loan subsidy amount being Rs 2.67 lakh. Home loan subsidies can be availed on those loans approved on or after 1st January 2017.

• Middle Income Group 1 or MIG I

Those applicants falling under the MIG 1 section can avail of a home loan subsidy at 4%, where the maximum home loan amount is Rs 9 lakh. The highest loan repayment tenure considered for home loan subsidy calculation is 20 years. As per the scheme, the maximum home loan subsidy amount stands at Rs 2.35 lakh.

• Middle Income Group 2 or MIG II

As per MIG II, the maximum home loan amount for the subsidy is Rs 12 lakh, wherein the beneficiaries can take up a home loan subsidy on the interest of 3%. As per the category, the maximum home loan subsidy amount that one can avail of is Rs 2.30 lakh. The maximum loan term basis which the subsidy gets calculated equals 20 years.

Benefits of Home Loan Subsidy

For availing the advantage under PMAY, you require to ensure that you meet the below-mentioned eligibility criteria:

• Must not own a pucca home in his name or in the name of any of the family members.
• Ownership of home must either be in the female member's name of the household or must be joint ownership with the wife (It is applicable just to LIG/EWS & revised LIG/EWS scheme).
• Must meet income criteria based on various categories as per the scheme.
• Home's carpet area must be 30 sqm for the EWS beneficiaries, 160 sqm for the MIG – 1 beneficiary, 60 sqm for the LIG beneficiaries & 200 sqm for the MIG II beneficiaries.
• Must not have a home loan or interest subvention benefit as per the scheme.

How to Check Home Loan Subsidy Status?

Home loan subsidy status can be checked in the following ways:

• Visit the official site of PMAY
• Go to the 'Citizen Assessment' option and choose 'Track Your Assessment.'
• You will automatically get redirected to a page
• Then choose from the option of ‘By Assessment ID’ or ‘By Name, Father’s Name & Mobile number’.
• Type in the needed data and select the submit option.

Eligibility Criteria

Eligibility criteria for home loan subsidy scheme are listed below:

• You should not own any house (pucca) in India.
• Annual income should not be over Rs 18 lakh
• You should not have taken any financial assistance as per the Government housing scheme earlier.
• Property or deed paper should include the female member name of the family. Joint ownership with any female member is even eligible.
• All towns based on the Census 2011 and towns subsequently mentioned are covered as per the scheme.
• Construction, renovation or extension of property for which the home loan is availed should be completed within 3 years from availing the loan amount.
• Houses that are already built are not covered under this scheme.

Documents Required to Apply PMAY Home Loan Subsidy

Identity proof required for submitting the PMAY home loan subsidy application are:

• PAN card
• Aadhaar card
• Voter ID card
• Passport
• Driving license
• Any photo linked ID card issued by the government
• ID proof verified by the public authority or the gazetted officer that identifies the applicant’s identity proof.

Address proof required for submitting PMAY home loan subsidy application are:

• Passport
• Address proof
• Aadhaar card
• Electricity bill
• Ration card
• Telephone bill
• Driving license
• Voter ID card
• Rent agreement on the stamp paper
• Utility bill
• Letter from recognized public authority verifying the address of the applicant
• Letter provided by the employer on the company letterhead
• Resident address certificate
• Recent credit card statements showing the address
• Bank statements showing the address
• Property or municipal tax receipt
• Deal’s copy when buying the property
• Selfor family pension payment orders that are issued by the public sector undertaking or Government body

Note that the PMAY scheme even makes required provisions for the applicants linked to Scheduled Tribes, Scheduled Class, Senior Citizens, Widows etc. Thus, the listed documents may be asked for the same:

• Marriage certificates
• Age proof – school leaving certificate, birth certificate, passport, aadhaar card etc.
• Death certificate of the spouse is required only in case of widows

How to Apply for Home Loan Subsidy in 2021?

To apply for the home loan subsidy, one requires visiting the PMAY website. This procedure starts with Aadhaar card verification by entering in the twelve-digit aadhaar no. under the option of 'Citizen Assessment'. Once the verification is done, fill up all the personal details in the form and enter on save. On your successful application, a system-generated application no. will be allotted to you that you can use for any future reference.

Home Loan Subsidy Calculator

The home loan subsidy calculator permits you to know the discount you will avail of on the home loan taken up from the PMAY scheme. For calculating the subsidy on the PMAY scheme, one simply requires entering the details of their loan, such as interest rate, principal etc. The application then will estimate a subsidy that you will get on obtaining the home loan.

For using the home loan subsidy calculator, ensure to follow the listed steps:

Step no. 1: Visit the official site of PMAY

Step no. 2: Go to the 'Subsidy Calculator' option on the site's navigation panel.

Step no. 3: Place in the required details on this page like the tenure, loan amount, family income etc.

Step no. 4: Click on the ‘Calculate’ button.

Step no. 5: Your subsidy amount details will get generated & displayed instantly on this page.

FAQs

✅Who is eligible for PMAY subsidy?

Individuals eligible for the PMAY scheme must have an annual household income of up to Rs 18 lakh. Applicants or any other member of the family should not own a house in India. Beneficiaries cannot get the benefit of the PMAY scheme on an already built home.

✅How can I check my home loan subsidy?

You can check your home loan subsidy status in the listed ways:

• Visit PMAY site
• Select ‘Citizen Assessment’ and then choose the ‘Track Your Assessment’ option
• Automate redirection to a page will take place, where one requires selecting the option between 'by name, father's name and mobile no.’ or ‘by assessment ID’.
• Type the required details and choose the submit option.

✅Can one get a home loan subsidy if he buys a newly constructed home that is then resold?

Yes, one can avail home loan subsidy.

✅Is conducting repair work to an existing home covered under the CLSS scheme?

Yes, repair work to an existing home is covered under the CLSS scheme. However, note that repair work can only be done in a semi pucca and kutcha house. For a semi pucca house, benefits can be availed just when extensive renovation requires to be conducted to build a pucca home.

✅Who is not eligible for the PMAY scheme?

In case a person's household income surpasses Rs 18 lakh p.a, then he will not be eligible for subsidies under the PMAY scheme.