Guide to Pradhan Mantri Awas Yojna Credit-linked Subsidy Scheme

Guide to Pradhan Mantri Awas Yojna Credit-linked Subsidy Scheme


The Pradhan Mantri Awas Yojana is a scheme introduced in the year 2015 by Prime Minister Narendra Modi. This scheme was introduced by the government to provide affordable housing to the urban poor population by the year 2022. The tagline “housing for all by 2022” is enough to talk for its objective of focusing on slum rehabilitation and credit linked subsidy scheme (CLSS).

Out of all the four schemes, CLSS is the only one that is implemented as a central sector scheme. Whereas the other schemes are implemented as the sponsor schemes. With the CLSS scheme, the government of India focuses on growing the credit flow in institutions to meet the housing requirements of the urban poor population.

Read more: How to get loan with bad credit

There are two central nodal agencies under the CLSS scheme, Housing Urban Development Corp and National Housing Bank. Other than increasing the credit flow of housing finance institutions, the scheme focuses on the demand and facets of affordable housing finance segment. The CLSS scheme is designed specially to benefit individuals belonging to Economically Weaker Sections or Low Income Groups searching for housing loans from banks and other financial institutions that are participating in the Pradhan Mantri Awas Yojana Scheme.

People from EWS and LIG planning to get finance for new construction or addition of a room to the existing structure can borrow under the CLSS. The houses built with the aid of money borrowed under Pradhan Mantri Awas Yojana requires to be registered under the name of a female head of the family.

Read more: The USDA Guaranteed Housing Loan Program Explained

Only in some special cases mentioned in the scheme, the house can be named under the male head of the family.

Note that in order to avail the loan under PMAY scheme, the house should be your first house. The beneficiary family should not own any pucca house in any part of India. To calculate the subsidy you can use online PMAY subsidy calculator.

To avail the benefits of CLSS scheme under PMAY scheme you need to fit in one of the following categories:

  1. Economically Weaker Section or Lower Income Group – Earning per annum income between Rs. 3 Lakh and Rs. 6 Lakh.
  2. Middle Income Group I – Earning per annual income within Rs. 6 Lakh – Rs. 12 Lakh.
  3. Middle Income Group II – Earning per annual income within Rs. 12 Lakh – Rs. 18 Lakh.

How to avail PMAY subsidy scheme

  1. Firstly, check if you are eligible to apply for the Home Loan Credit Subsidy Scheme under the PMAY.
  2. If you are meeting all the eligibility criteria, then you can contact banks and financial institutions offering the PMAY scheme.
  3. Then the next step is filling the PMAY Home Loan credit Linked Subsidy application form. Submit it to the lender with the documents that are needed.
  4. The documents and form will get verified, and the housing loan amount will get disbursed in your mentioned bank account.
  5. After the disbursement of the loan amount, the lender will initiate the process of claiming interest subsidy by contacting the nodal agencies.
  6. On clearing the verification, you will receive the interest subsidy in your loan account, thus resulting in lower Equated Monthly Installment (EMI) amount by adjusting the loan amount.

Following the above-mentioned steps will help you to apply for the CLSS scheme easily. You can now apply effortlessly for PMAY online and calculate your subsidy on online PMAY subsidy calculator.

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