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Pradhan Mantri Awas Yojana or PMAY is a housing subsidy scheme launched by the Prime Minister of India, Mr. Narendra Modi in June 2015. This initiative is focused on providing affordable housing to people from all walks of life by the year 2022. This initiative aims at helping people from the economically weaker sections to fulfil their dream of owning their home. The Credit Link Subsidy Scheme (CLSS) is one of the important components of PMAY. Under CLSS, eligible beneficiaries are offered interest subsidies on housing loans.
The Ministry of Housing and Urban Affairs has designated the National Housing Bank (NHB), Housing and Urban Development Corporation (HUDCO), and State Bank of India (SBI) as central nodal agencies (CNAs). These agencies are responsible for tracking the progress and channelising the subsidy to the borrower through financial institutions. An applicant has to apply to the lender for availing subsidy on a housing loan under the PMAY scheme. As soon as the loan is sanctioned, the lender checks if the borrower fulfils the eligibility criteria and then applies for the subsidy to one of the CNAs. Once the claim request for the subsidy from a lender is received, earmarked funds as per the applicant’s eligibility are released directly to the applicant’s loan account. For every loan application submitted to central nodal agencies, a corresponding application ID is assigned that can be used to track the PMAY status online.
However, there could also be a few grounds for the rejection of the PMAY subsidy
As with any subsidy scheme, PMAY also has certain eligibility criteria based on which the lender approves or rejects the home loan subsidy application. Listed below are some key reasons why you may not receive a PMAY subsidy on your housing loan.
Already owning a house is one of the reasons due to which an applicant may not receive the subsidy on a housing loan. To avail benefits of home loan subsidy under the PMAY scheme, the borrower and his immediate family members should not have any house in their name in any part of the country.
If the borrower looking to avail benefits under Pradhan Mantri Awas Yojana and has already received a subsidy under any other central or state government housing scheme, the application for the subsidy would be marked rejected in that scenario.
In the case of a married couple, it is mandatory under the PMAY scheme to register the wife as the co-applicant for the loan. But if one of the spouses has already availed subsidy under the PMAY scheme, the application would be rejected for the other spouse.
As per the PMAY eligibility criteria, the housing loan subsidy can be availed by the beneficiaries for buying a new house or for the up-gradation from kutcha to pucca house. But if an applicant wishes to use the subsidy benefits for resale flats, the application can be rejected by the lender.
Applying for subsidy under the wrong income group is one of the primary reasons for not receiving the PMAY loan subsidy. Refer to the table below for details regarding the family income limit and corresponding interest subsidy and the loan amount for subsidy.
|Classes||Interest Subsidy (per annum)||Family Income Limit||Maximum Loan for Subsidy|
|EWS (Economically Weaker Section)||6.50 %||INR 3 Lakhs per annum||INR 6 Lakhs|
|LIG (Lower Income Group)||6.50%||INR 6 Lakhs per annum||INR 6 Lakhs|
|*MIG – 1 (Middle Income Group-1)||4%||INR 6-12 Lakhs per annum||INR 9 Lakhs|
|*MIG -2 (Middle Income Group-2)||3%||INR 12-18 lakhs per annum||INR 12 lakhs|
*MIG 1 and MIG 2 Schemes are closed effective 31st March 2021, as per communication received from NHB.
To ensure smooth and easy approval of your loan application and to enjoy the benefits of the PMAY housing subsidy, avoid the common mistakes mentioned in this blog. Use the web portal pmaymis.gov.in to track the status of your application online. The whole process from submitting of application for the subsidy to the release of funds to the borrower’s loan account from central nodal agencies can take up to 6 months. In case of delay in the release of funds, an applicant can reach out to the grievances redressal department at firstname.lastname@example.org.