The Pradhan Mantri Awas Yojana (PMAY) (URBAN), was formerly called Indira Awas Yojana and was renamed in March 2016. Housing for All was a mission that was launched by the Government of India targeted at promoting with the aim of boosting homeownership. It aimed at achieving ‘Housing for All’ by the year 2022. All statutory towns as per Census 2011 and towns notified subsequently would be eligible for coverage under the Mission. Note: States/UTs will have the flexibility to include in the Mission the Planning area as notified with respect to the Statutory Town and which surrounds the concerned municipal area. All loans accounts under the Scheme will be linked to Aadhaar.
The loan availed for purchase/ construction/ extension/ improvement of a house under the scheme is eligible for interest subsidy called Credit Linked Subsidy Scheme (CLSS). The scheme is operative from 17th June 2015 to 31st March 2022.
Under Affordable Housing through Credit Linked Subsidy there are 4 schemes:
1. CLSS – EWS
2. Revised CLSS – EWS/LIG
3. CLSS (MIG-I):
4. CLSS (MIG-II)
EWS means Economical Weaker Section
LIG means Lower Income Group
MIG means Middle Income Groups)
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. A family will comprise of husband-wife, unmarried sons, and daughters. An unmarried adult (irrespective of male or female status) can be treated as a separate household. In the case of a 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.
EWS category is households whose annual income is up to Rs.3 lakh. LIG categories are defined as those whose annual household incomes are above Rs3 lakh but below Rs 6 lakh. MIG 1 category is defined as the one with a household income of above Rs 6 lakh but below ₹12 lakh. MIG 2 category is defined as the one with a household income of above Rs 12 lakh but below Rs18 lakh.
Subsidy under CLSS:
The beneficiaries belonging to the Economically Weaker Section (EWS) and Lower Income Group (LIG) categories are eligible for a maximum interest subsidy of 6.5%, provided that the unit being constructed or purchased does not exceed the carpet area requirement of 60 square meters (approximately 645.83 square feet). The interest subsidy is limited up to a maximum loan amount of Rs 6 lakh and the maximum eligible subsidy is approximately Rs.2.20 lakh. The beneficiaries in the MIG- 1 category are eligible for a maximum interest subsidy of 4 %, provided that the unit being constructed or purchased does not exceed the carpet area requirement of 160 square meters (approximately 1,722.23 square feet). This subsidy is however limited to a maximum loan amount of Rs 9 lakh over a home loan tenure of up to 20 years. MIG 2 category is defined as the one with a household income of above Rs12 lakh but below Rs18 lakh. The beneficiaries of the MIG- 2 categories are eligible for a maximum interest subsidy of 3%, provided that the unit being constructed or purchased does not exceed the carpet area requirement of 200 square meters (approximately 2,152.78 square feet). This subsidy is however limited to a maximum loan amount of Rs.12 lakh over a home loan tenure of up to 20 years. Interest subsidy will be credited upfront to the loan account of beneficiaries through Primary Lending Institutions resulting in reduced effective housing loan and Equated Monthly Installment (EMI). The Net Present Value (NPV) of the interest subsidy will be calculated at a discount rate of 9 %. Housing and Urban Development Corporation (HUDCO) and National Housing Bank (NHB) have been identified as Central Nodal Agencies (CNAs) to channelize this subsidy to the lending institutions and for monitoring the progress of this component. Ministry may notify other institutions as CNAs in the future.
Primary Lending Institutions (PLI)
Scheduled Commercial Banks, Housing Finance Companies, Regional Rural Banks (RRBs), State Cooperative Banks, Urban Cooperative Banks, Small Finance Banks* (as approved by Reserve Bank of India), Non-Banking Financial Company-Micro Finance Institutions* (NBFC-MFIs) (as registered with Reserve Bank of India) or any other institutions as may be identified by the Ministry.