Buying a Home? Understand How PMAY CLSS Scheme Can Help You

PMAY or Pradhan Mantri Awas Yojana is a flagship housing scheme launched by the Government of India. It is aimed to financially assist prospective home buyers make their first residential purchase.

One of the essential ways loan seekers can benefit from PMAY is by availing housing loans at subsidised rates. You can avail this benefit based on your income slab and few other eligibility criteria.

Here is everything you need to know of this credit linked subsidy scheme (CLSS) and how you can make the most out of it.

What is the PMAY CLSS scheme?

As per the PMAY guidelines, the Indian government has tied with reputable financial institutions and NBFCs. These partnered lenders sanction Home Loans in accordance with the subsidies after qualifying for CLSS scheme. You can avail up to Rs. 3.5 Crore and coupled with PMAY benefits, you can further economise your home loan. Furthermore, existing customers can also benefit from their pre-approved offers.

As an eligible beneficiary under the PMAY scheme, one can claim interest subsidy of up to 6.5% on your housing loan interest based on the PMAY eligibility criteria and maximise your savings.

Qualifying under this scheme

To be eligible for this credit linked scheme offered by PMAY, the applicants must abide by specific parameters. Take a look –

  • EWS (Economically Weaker Section) – If the annual household income is below Rs. 3 Lakh.
  • LIG (Lower Income Group) – Provided the annual household earnings lie between Rs. 3 Lakh and 6 Lakh.
  • MIG (Middle Income Group) I – If the annual household income is between Rs. 6 Lakh and 12 Lakh.
  • MIG II – Provided the annual household earnings lie within Rs. 12 Lakh and 18 Lakh.

Here is the interest subsidy that beneficiaries can enjoy under the credit-linked subsidy scheme –

  • MIG I beneficiaries can avail a credit-linked subsidy of 4% for home loans till up to Rs. 9 Lakh.
  • MIG II beneficiaries are eligible for a subsidy of 3% for loans of up to Rs. 12 Lakh.
  • Beneficiaries from the EWS and LIG category can receive a subsidy of 6.5% for advances up to Rs. 3 Lakh and Rs. 6 Lakh respectively.

If you are a first-time homebuyer eligible for PMAY, you can enjoy its benefits on your housing loans.

How does CLSS operate?

Once a lender sanctions a housing loan under PM Awas Yojana scheme, the beneficiaries can claim the subsidy for up to a tenor of 20 years. This period can be further extended to 30 years, provided the applicant’s age at the end of the tenor is less than 70 years.

Here is an instance of how CLSS works in case of PM Awas Yojana scheme –

Suppose a loan seeker avails an advance of Rs. 9 lakh and falls under EWS category. Then, based on the CLSS eligibility, he/she can claim a 6.5% subsidy on only Rs. 6 Lakh on the basis of the eligibility criteria. Hence, during loan repayment, he/she pays regular EMIs on Rs. 3 Lakh and enjoy subsides on the remaining Rs. 6 Lakh.

The borrower can also use the PMAY eligibility calculator to calculate the amount of subsidy on the advance, which in this case amounts to Rs. 2,67,280. This is how PMAY eases your way to become a homeowner in India. You can also see the all types of loans offered by SBI.

Keep these pointers in mind and start your journey towards acquiring your new home today. The above guidelines are everything that you need to know of PMAY scheme to assist you in becoming a homeowner conveniently. Also, make sure you settle on a lender that offers advances under PMAY compliance.

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