The PMAY (Pradhan Mantri Awas Yojana) scheme, introduced in June 2015focuses on providing affordable housing for selected categories of the society by the year 2020. The scheme was introduced by Prime Minister Narendra Modi to provide affordable housing for the poor in the urban areas of the country.

PMAY scheme has four components including in-situ slum redevelopment, affordable housing through credit linked subsidy, affordable housing in partnership with private and public sector and beneficiary led house construction or enhancement.

Under the credit linked subsidy of the PMAY scheme, focus is placed on the Economic Weaker Section (EWS), Lower Income Group (LIG) and Middle Income Group (MIG-I) and Middle Income Group (MIG-II). Below is a brief description of the four categories:

There are a few more eligibility points one can keep in mind:

• The beneficiary can avail of the PMAY scheme if he has not availed of any central assistance under any housing scheme from central/state government of India.
• An adult earning member, irrespective of the marital status, will be treated as a separate household, provided that the he/she does not own a pucca house in his/her name in any part of the country.
• In case of a married couple, either of the spouses/both in joint partnership should be eligible for a single house, considering the income eligibility of the household.
• To avail benefits under the EWS and LIG scheme, women should be the co-owner of the property and the co-borrower of the loan.
• Customer or his/her family should not have a pucca house before.

Important Facts:

• Candidates registering under the EWS and LIG scheme should submit an affidavit as an income proof to the authority.
• Home renovation loans are not eligible under the CLSS scheme of Pradhan Mantri Awas Yojna.
• Balance transfer of an existing home loan will be eligible for subsidy if the loan sanction date eligibility criteria are met.
• The family of the beneficiary should comprise of the husband, wife and unmarried sons/daughters children to avail the benefits of the scheme.

Below is a glimpse of the benefits provided to the four categories under the PMAY scheme:

Housing finance companies provide data to the NHB periodically to raise the subsidy claim. Post this, the NHB (National Housing Bank) cross-checks the data on the basis of PMAY scheme norms, releases the subsidy in favour of the HFC (Housing finance company) which later gets transferred into the loan account of the customer and the EMIs get reduced.