Home Loan

What is PMAY?

  • July 9, 2021
  • 2 minutes read

The abbreviation PMAY stands for Pradhan Mantri Awas Yojana. PMAY is a housing scheme launched by the Central Government of India for it’s urban population. This housing scheme is to provide pucca houses (solid, permanent dwelling) for the economically weaker section. 

PMAY was launched on 25th June 2015 for the purpose of ensuring safe housing for all sections of society in inner-city areas. There are four schemes under the PMAY: 

  • In Situ Slum Redevelopment (ISSR) 
  • Beneficiary Lead Construction/Enhancement (BLC/BLCE) 
  • Credit Link Subsidy Scheme (CLSS) 
  • Affordable Housing in Partnership (AHP) 

What is Credit Link Subsidy Scheme? 

CLSS is the widely used PMAY scheme for Middle-Income Group (MIG) and Low-Income Group (LIG) citizens who are seeking home loans from the government. Credit Linked Subsidy Scheme (CLSS) was approved in the year 2017 and was extended till March 2021.  

The benefit of CLSS is primarily a subsidized rate of interest for housing loans.  

Who is eligible for the PMAY scheme? 

People falling under Low-Income Group (LIG), Economically Weaker Section (EWS), Middle-Income Group (MIG I), (MIG II) are eligible to apply for home loan using this scheme.  

Who is not eligible to apply for home loan under PMAY? 

Individuals who either own a brick and cement house, or, have a family member who owns a brick & cement house are not eligible to apply for home loan under PMAY. In this case, a family is inclusive of wife, husband, their unmarried daughters and/or unmarried sons. This is to make sure those who do not have a brick and cement house of their own are given financial aid for purchasing/constructing their house.  

It is to be noted that as per the guidelines, an individual above 18 years of age (either married or unmarried) who is an earning member of the household is treated as a separate household. The only condition being that he/she does not own a brick and cement house in his/her name in any part of India. 

In simple words, this means, in the family unit even if the children who stay with their parents in a house for which rent is being paid, the children can opt for PMAY. The only condition is that they do not own a brick and cement house in any part of the country and are an earning member of the family.  

In case of individuals of MIG and LIG who are married and stay independent of their parents, in another house by paying rent, are eligible for PMAY. Even if the applicant’s parents own a house, the children can still apply for home loan under PMAY because a married couple is considered as a separate family unit. The married couple is eligible to purchase a single house under the PMAY. 

Also, individuals who have already availed another housing scheme provided by the state or central government are not eligible to apply for another home loan under PMAY.  

Which income groups are eligible for PMAY-CLSS? 

Economically Weak Sections (EWS) households whose annual income is up to Rs.3 lakh. 

Lower Income Group (LIG) households whose annual income is the range of Rs.3 lakh to Rs.6 lakh. 

Middle Income Group I (MIG I) households whose annual income is the range of Rs.6 lakh to Rs.12 lakh. 

MIG II households whose annual income is the range of Rs.12 lakh to Rs.18 lakh. 

Now that you know what is PMAY, the home loan scheme to be utlitized, who is eligible by income and by government guidelines, why wait any longer to get your dream home? Learn how you can get a home loan under PMAY here.  

Written by: Marketing Fincity

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