The Pradhan Mantri Awas Yojana (PMAY) is a Credit Linked Subsidy Scheme (CLSS) introduced by the Central Government. It aims to provide affordable housing to those belonging to the Economically Weaker Section (EWS), Low Income Group (LIG), Middle Income Group-I (MIG-I), and Middle-Income Group-II (MIG-II). Under PMAY, the beneficiaries enjoy the home loan with an interest subsidy of up to ₹ 2.67 Lakhs for purchase/construction/extension/improvement of their home.

If you come under the category of Economically Weaker Section (EWS), Low Income Group (LIG), Middle Income Group-I (MIG-I), or Middle-Income Group-II (MIG-II) as per your total annual household income, you can get a subsidy on home loan under PMAY.

The annual income norms for various household categories defined under PMAY are:

• EWS households: Up to ₹3 Lakhs
• LIG households: Between ₹3 Lakhs - ₹6 Lakhs
• MIG I households: Between ₹6 Lakhs - ₹12 Lakhs.
• MIG II households: Between ₹12 Lakhs - ₹18 Lakhs.

Under Credit Linked Subsidy Scheme (CLSS), the beneficiaries of Economically Weaker Section (EWS) and Low-Income Group (LIG) can avail housing loans at lower/subsidized EMI from Banks and other financial institutions for purchase/construction of house or improvement of their existing homes. However, the subsidy will be available only for a loan amount of up to ₹6 Lakhs at the rate of 6.5% p.a. for tenure of up to 20 years. Interest subsidy will be credited upfront to the loan account of beneficiaries through Primary Lending Institutions.

Under Credit Linked Subsidy Scheme (CLSS), the beneficiaries of Middle-Income Group (MIG) can avail housing loans at lower/subsidized EMI from Banks and other financial institutions for acquisition/ construction of house (including re-purchase). However, the subsidy will be available only for a loan amount of up to ₹9 Lakhs for MIG-I and ₹12 Lakhs for MIG-II at the rate of 4 % and 3% respectively for a tenure of up to 20 years. The Net Present Value of the interest subsidy will be calculated at a discount rate of 9%. Any additional loan amount beyond the limit will be at non-subsidized rate. Also, the carpet area of the house should not exceed the permissible carpet area of 160 sqm and 200 sqm for MIG-I and MIG-II categories respectively.

Once the home loan is approved by your bank or financial institution, the subsidy will be released by the Central Nodal Agencies. The subsidy amount will be disbursed by the Central Nodal Agency to the Primary Lending Institution, which will be credited to the borrower’s home loan account upfront by deducting it from the principal loan amount.

PLIs such as Scheduled Commercial Banks (SCB), Regional Rural Banks (RRBs), Housing Finance Companies (HFCs), Urban Cooperative Banks (Scheduled as well as Non-Scheduled), State Cooperative Banks, Small Finance Banks (as approved by the Reserve Bank of India) and Non-Banking Financial Company-Micro Finance Institutions (NBFC-MFIs) (as registered with Reserve Bank of India) which have signed Memorandum of Understanding with any one of the Central Nodal Agencies.

Each Central Nodal Agencies (CNA) releases a subsidy at the start of the scheme. The subsequent amount of credit linked subsidy is released to the CNA after 70% utilization of earlier funds based on the claims raised by these CNA.

Yes, preference under the Credit Linked Subsidy Scheme will be given to the customers belonging to the Scheduled Castes/ Scheduled Tribes/ Other Backward Classes, women (with overriding preference to widows), minorities, manual scavengers, persons with disabilities and transgenders subject to beneficiaries belonging to EWS / LIG, MIG -I & II segments as applicable.