Pradhan Mantri Awas Yojana Credit Linked Subsidy Scheme was introduced by the Indian Government on 1^st January, 2017 to provide housing for the urban population by 2022. PMAY CLSS is a subsidy that reduces the interest rate burden on a home loan.  is implemented at the Centre by National Housing Bank and Housing Urban Development Corp.

Individuals who fall in the specified income bracket and meet the criteria can apply for PMAY – CLSS  with banks that are participating in PMAY. Residential property to be purchased using the PMAY CLSS home loan should be in the name of female head of the family – or – be jointly owned by the husband and wife.

What is PMAY CLSS?

Credit Linked Subsidy Scheme (CLSS) is a subsidy scheme to enable home ownership Indians in the Low Income Groups (also known as LIG), Economically Weaker Sections (also known as EWS), and Middle Income Groups (also known as MIG). When an individual avails a home loan under PMAY CLSS, the government subsidizes the interest rate and overall repayment liability of the borrower. The subsidy amount that a home loan applicant is eligible to receive is based on the income slab and the size of residential property to be purchased/modified using the home loan.

Applications to be submitted based on the income category of the individual:

Home loan applications under the PMAY CLSS scheme are categorized based on the applicant’s income + their immediate family’s income. A “household” as defined, comprises of a married couple and any children of the couple (I.e. children who are not yet married). An adult child who is employed and has regular monthly income will be considered to be part of an entirely separate “household”. Here are the three income categories that are eligible to apply for home loan and use PMAY CLSS subsidy:

1. Low Income Group (a.k.a. LIG) or Economically Weaker Section (a.k.a EWS)

Households whose annual income is between Rs.3-6 lakhs fall under this category.  Subsidy on interest rate for such households is capped to a maximum of 6.5% p.a. for housing loan up to Rs.6 lakh. The residential property that is either constructed or purchased as ready-to-occupy property’s carpet area should be within 645.83 square feet to be eligible for subsidy.  

2. Middle Income Group (MIG) I

Households whose annual income is between Rs.6-12 lakh fall under this category. Subsidy on interest rate for such households is capped to a maximum of 4% p.a. for housing loan up to Rs.9 lakh. Carpet area of the residential property should be within 160 square meters. Also, the loan tenure should not exceed 20 years.

3. Middle Income Group (MIG) II

Households whose annual income is between Rs.12-18 lakhs fall under this category. A maximum of 3% p.a. is provided as subsidy on interest rate for home loan amount up to Rs.12,00,000. Residential property should not exceed 200 square meters in carpet area. The loan tenure to a maximum of 20 years is accepted.

PMAY CLSS housing scheme based on income of the “household”

The home loan applicant should meet all the criteria mentioned in the table below in order to be eligible to apply and receive the government’s subsidy under this scheme

Eligibility criteria for PMAY CLSS

If the individual and his household fall in one of the income categories as mentioned above, he/she should also satisfy the criteria mentioned below to be eligible for applying home loan under this scheme.

• The home loan applicant and immediate family members of the applicant should not own a “pucca” house in any part of India.
• The home loan applicant and any of his/her family members should not have received any benefit from central government under any housing scheme or under this scheme.
• The home loan applicant’s spouse should not apply for subsidy under any other housing subsidy scheme. The individual can apply for home loan with or without their spouse under this scheme.
• All the members of the household should have valid Aadhar numbers and should submit a copy of their Aadhar card along with the home loan application.

Pradhan Mantri Awas Yojana (PMAY) CLSS Frequently Asked Questions (FAQs)

1. What is a household in PMAY scheme?

Household refers to a married couple and their unmarried children. If the unmarried children are adult earning members, they are treated as a separate household.

2. Who can apply for PMAY CLSS?

Home loan applicant and his household members should not own a pucca house in any part of India and should not have received any benefit under any of the schemes by Central Government of India for housing can apply for PMAY CLSS.

3. I want to buy residential property in rural area. Can I use PMAY to purchase property in rural areas?

This scheme is only for residential properties in urban areas of India. The property can be ready to occupy or a plot of land for construction. Home loan availed for properties in rural areas does not fall under PMAY CLSS.

4. How can I claim subsidy of interest amount on my home loan with this scheme?

You can apply for home loan and use the subsidy on your home loan application. The bank or financial institution in which your home loan is approved, will send the necessary details to National Housing Bank (NHB) after disbursing your home loan. NHB will further validate your details and approve the subsidy under PMAY CLSS. You will receive a confirmation from your bank about the same.

5. It is mandatory to have a female family member to be owner of the property for which home loan is applied?

It is mandatory to have female property owner while applying for PMAY CLSS under LIG/EWS category. It is not required for MIG I & MIG II.

6. After applying for home loan under PMAY CLSS, how do I check the status of my subsidy approval?

To check the status of your PMAY CLSS subsidy, follow these steps:

Step 1 – Visit the official website here https://pmayuclap.gov.in/

Step 2 – Enter the application ID you received from your bank/financial institution after applying for home loan.

Step 3 – Click on ‘Get status’.

Step 4 – System generates an OTP to your registered mobile number with the bank. Enter the OTP in the mentioned column.

Step 5 – You can view your claim status under ‘CLSS tracker’ tab of your website.

7. I want to get home loan for a longer tenure but it is restricted to 20 years in PMAY CLSS scheme. What should I do?

You can apply for home loan for a loan tenure longer than 20 years. But PMAY CLSS subsidy will be provided to a maximum of 20 years.

8. There is a max cap of loan amount in the PMAY CLSS scheme. But I want to get a higher loan amount. Will it still be covered under the scheme?

You can apply for any amount of home loan you’d like but subsidy will be given as per the specified limit – Rs.6 lakh for LIG, Rs.9 lakh for MIG I and Rs.12 lakh for MIG II. Any amount taken higher than this specified limit will not be subsidized.

9. Can I opt for home loan balance transfer after availing PMAY CLSS?

You can opt for home loan balance transfer when you have the benefit of PMAY CLSS on your home loan, but the benefit of subsidy cannot be transferred from one loan provider to another. Also, you will not be able to apply for the subsidy on your home loan after transferring it to a different loan provider as this scheme can be availed only once.

10. Which documents should be submitted along with my home loan application to get PMAY CLSS benefit?

You can approach the bank or financial institution to get a format for self-declaration. Use the same format to write a declaration stating that you and your family members do not own a pucca house in any part of India. Submit the self-declaration along with your home loan application to the bank/financial institution.