PRADHAN MANTRI AWAS YOJANA “HOUSING FOR ALL (Urban)”

“Housing for All” Mission for urban area will be implemented during 2015-2022 and this Mission will provide central assistance to implementing agencies through States and UTs for providing houses to all eligible families/beneficiaries by 2022.

Affordable Housing through Credit Linked Subsidy

The Mission, in order to expand institutional credit flow to the housing needs of urban poor will implement credit linked subsidy component as a demand side intervention. Credit linked subsidy will be provided on home loans taken by eligible urban poor (EWS/LIG) for acquisition, construction of house.

Under Affordable Housing through Credit Linked Subsidy there are 4 schemes:

  1. CLSS – EWS / LIG
  2. Revised CLSS – EWS/LIG
  3. CLSS (MIG-I)
  4. CLSS (MIG-II)

CREDIT LINKED SUBSIDY SCHEME- EWS / LIG

Scheme: Under this scheme credit linked interest subsidy @6.50% for 15 years or actual tenor of the loan, whichever is lower, will be provided to the eligible beneficiaries in EWS/LIG category by the Government of India.

  • Applicants belonging to LIG(Low Income Group) & EWS (Economically Weaker Sections) section. The EWS/LIG categories are defined as follows:
  • EWS households with an annual income upto Rs. 3.00 lacs
  • LIG households with an annual income between Rs. 3.00 lacs to Rs. 6.00 lacs

Scheme: 17th June 2015 to 31st March 2022

  • Maximum subsidy of Rs. 2.20 lacs (approx.) is eligible

COVERAGE & ELIGIBILITY

  • The ownership of the house should either in the sole name of the female member of the household or joint ownership with the wife. However, this condition will not be made mandatory in cases of construction of house on an existing plot or extension/renovation of existing Kuccha/Semi-pucca house
  • The beneficiary family should not own a pucca house (an all-weather dwelling unit) either in his/her name or in the name of any member of his/her family in any part of India
  • The carpet area of house under this Scheme should be upto 30 sq. mts. for EWS beneficiaries and upto 60 sq. mts. for LIG beneficiaries
  • Credit Linked Subsidy is available for housing loans availed for acquisition/construction of house and repair/extension of Kucha/Semi Pucca house
  • Maximum term of loan on which the subsidy will be calculated is 15 years

REVISED CREDIT LINKED SUSBSIDY SCHEME – EWS /LIG

  • All the above guidelines of CLSS- EWS / LIG applies to this scheme also.
  • The Maximum term of loan increased from 15 years to 20 years
  • Maximum subsidy of Rs. 2.67 lacs (approx.) is eligible

CREDIT LINKED SUBSIDY SCHEME- MIG

Government of India under the aegis of the Ministry of Housing and Urban Poverty Alleviation (MoHUPA) has launched ‘Credit Linked subsidy Scheme (CLSS)’ for Urban Areas under the ambit of Pradhan Mantri Awas Yojana. The CLSS-MIG will be implemented initially for a period of one year i.e. from 01.01.2017 up to 31.12.2017, but has now been extended up to 31.03.2019

Scope and Coverage

All Statutory towns as per Census 2011 and towns notified subsequently will be eligible for coverage under CLSS for MIG. Planning Area as notified with respect to the Statutory Towns and which surrounds the concerned Municipal area will also be covered under the Scheme to provide interest subsidy for Housing Loan beneficiaries belonging to Middle Income Groups (CLSS-MIG).

  • The credit linked subsidy @ 4% will be available for loan amount up to Rs. 9 lacs in case of MIG-I and @3% for Rs 12 lacs in case of MIG-II. However, the Banks can sanction Home Loans more than Rs. 9 or12 lacs but the subsidy will be restricted to Rs. 9 or 12 lacs, as the case may be..
  • Under CLSS, an interest subsidy will be available for a tenor of 20 years or actual tenor of the loan, whichever is lower. However, Bank can sanction loans for a maximum tenor of 30 years but the loan has to be repaid before the borrower attains the age of 70 years. The Net Present Value (NPV) of or the subsidy will be calculated at a discount rate of 9% and will be credited upfront to the loan account.
  • Maximum subsidy eligible under CLSS-MIG(I) – Rs. 2.35 lakhs (approx.)
  • Maximum subsidy eligible under CLSS-MIG(II) – Rs. 2.30 lakhs (approx.)

Eligibility

  1. The Household with an annual income from Rs 6,00,001 to Rs. 12 lacs for MIG-I
  2. The household with an annual income from Rs 12,00,001 to Rs. 18 lacs for MIG-II
  • The beneficiaries have been defined as a family comprising of husband, wife and unmarried children. An adult earning member (irrespective of marital status) can be treated as a separate household and can avail subsidy independently.
  • In case of married couple, either of the spouses or both together in joint ownership will be eligible for a single house subject to income eligibility of the household under the scheme.
  • The beneficiary family should not own a pucca house (an all-weather dwelling unit) either in his/her name or in the name of any member of his/her family in any part of India.
  • The carpet area of house under this Scheme should be up to 120 sq. mts. for MIG-I beneficiaries and up to 150 sq. mts. for MIG-II beneficiaries.
  • Banks shall have to submit a consolidated certificate on completion of the housing unit within one year period from the completion of construction or a maximum of 36 months from the date of the disbursement of the 1st installment of the loan amount. In case of default in not providing utilization/end use certificate the Bank shall refund the amount of subsidy to the CNA.
  • In case a borrower who has taken a Home Loan under the Scheme and has availed interest subvention benefit under the Scheme but later on switches to another Bank, such beneficiary will not be eligible for the benefit of interest subvention again.
  • Home Loan under this scheme will be available only by way of term loan (no maxgain facility will be available) with a maximum tenor of 30 years. However, subsidy is available for a maximum tenor of 20 years only.
  • Though the interest subvention under CLSS (MIG) is available upto Rs. 9 or12 lacs, loan limits over and above Rs. 9 and 12 lacs will also be sanctioned to the eligible borrowers based on the eligibility criteria stipulated under our existing Home Loan Scheme.
  • All loans accounts under the Scheme will be linked to Aadhaar

PMAY - CLSS TABULAR GUIDELINES

INTEREST RATES: The interest rates are as applicable for Home Loans in SBI

Criteria Existing Instructions(CLSS – EWS +LIG) Revised Instructions (CLSS – EWS +LIG) CLSS (MIG-I) CLSS (MIG-II)
Household/ Annual Income (Rs) Upto Rs. 6 lakhs Upto Rs. 6 lakhs Rs. 6.01-12.00 lakhs Rs. 12.01-18.00 lakhs
Property Area (Carpet Area ## ) 30/60 sqm* 30/60 sqm* 120sqm 150sqm
Location 4487 towns 4487 towns Urban -2011* Urban -2011*
Woman Ownership Yes (except for construction) Yes (except for construction) NA NA
Max Loan Amt for Subsidy Upto 6 lakhs Upto 6 lakhs Upto 9 lakhs Upto 12 lakhs
Subsidy % 6.50% 6.50% 4% 3%
Subsidy Amount Rs. 2.20 lakhs Rs. 2.67 lakhs Rs. 2.35 lakhs Rs. 2.30 lakhs
NPV 9% 9% 9% 9%
Max term of loan (on which subsidy will be calculated) 15 yrs 20 yrs 20 yrs 20 yrs
Property should be Family’s 1st home** 1st home** 1st home** 1st home**
Validity 2022 2022 31/03/2019 31/03/2019
Applicability Loans approved on/after 17/06/2015 Loans approved on/after 01/01/2017 Loans approved on/after 01/01/2017 Loans approved on/after 01/01/2017
  • *Applicable in case of Repair and Renovation
  • ** Major earning son / daughter can also own a house & avail subsidy separately for their 1st home. In case of EWS / LIG loan sanctioned on or after 27th June, 2017 will be eligible for the same.
  • # 4487 Statutory Towns and the Planning Area as notified with respect to the Statutory Town and which surrounds the concerned municipal area will also be covered under the Scheme.
  • ##Carpet Area: The net usable floor area of an apartment, excluding the area covered by the external walls, but includes the area covered by internal partition walls of the apartment.
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