Interest subsidy under the PMAY scheme: How to apply for it?

The Government of India launched the PMAY scheme to ensure housing for all by 2022. Read this article to find out how to avail of interest subsidies under the scheme.

Owning a home is the ultimate dream for most of us. However, it is not the easiest dream to achieve because of the heavy investment required. In this context, the Government of India launched the Pradhan Mantri Awas Yojana (PMAY) scheme to help people achieve this dream. 

Under the PMAY scheme, affordable houses will be constructed in specified regions using environment-friendly practices. A unique feature is the interest subsidy under the Credit Linked Subsidy Scheme (CLSS). This article will discuss everything you need to know about the PMAY scheme.

Launched in 2015, the PMAY scheme aims to render affordable housing for all by 2022. The houses will be built using eco-friendly materials to ensure minimal pollution and environmental damage. The scheme has numerous incentives and measures meant to address the housing needs of the urban poor population, including slum dwellers.

What is Credit Linked Subsidy Scheme (CLSS)?

CLSS is a benefit under the PMAY scheme for the Economically Weaker Section (EWS), Low Income Group (LIG), and Medium Income Group (MIG). It enables these sections to get home loans with reduced EMIs, thanks to an interest subsidy.

This subsidy is credited to the beneficiary upfront on the principal amount. As a result, the effective home loan and EMI reduce, making them more affordable. The subsidy is significantly dependent on the applicant’s income category and the size of the property financed.

Related: 7 Government Schemes To Aid Economic Development And Financial Stability That You Can Benefit From

How to avail of subsidy under PMAY Scheme?

So long as you are eligible for the subsidy, you can apply either offline or online. To apply for the subsidy offline, you need to apply through a CSC (Common Service Centre) that offers government services. If you wish to apply for the subsidy online, visit the official PMAY portal.

Here are the steps you should follow to obtain a home loan subsidy under the PMAY scheme:

• Determine your income category: First, you need to determine which income category you fall under. Depending on whether you belong to the EWS, LIG, or MIG, you can determine the carpet area of the property.
• Go to the official online portal: Once you have identified which category you fall into, visit the official online portal to apply for the subsidy. Click on the ‘Citizen Assessment’ option from the menu section.
• Fill up your loan application: Proceed with your loan application, filling in all the necessary details. You will be required to submit several documents, such as income proof, property details, age proof, investment details, and various declarations.

After completing the form, print it and submit it at your nearest CSC and bank along with all the necessary documents.

Related: Are Subsidies Good Or Bad For India?

Last words

PMAY was launched to ensure housing for all across various sections of society. The government wanted to boost homeownership by 2022 by constructing two crore homes. So far, sanctions have been given for over one crore homes. It should be interesting to see how well the scheme achieves its goals by the end of 2022.