To solve the problem of housing deficit, Pradhan Mantra Yojana (PMAY), an initiative has been launched by the Prime Minister. The Yojana comes with an agenda of rapid urbanization, and providing home-ownership to the urban poor. Launched in 2015, the New Pradhan Mantri Awas Yojana delivers housing assistance to the citizens. The Credit Linked Subsidy Scheme (CLSS) is provided under this mission.
The Credit Linked Subsidy Scheme (CLSS)
The program, initially provided residence solutions for people belonging to the Economically Weaker Sections (EWS) and Lower Income group (LIG) category, but later, included Middle Income group (MIG) category as well.
The scheme also provides lenient interest rates to potential owners looking for a home loan.
Around 70 lending institutions will support this initiative, and provide affordable pricing options. The supporting agencies include commercial banks, small finance companies, regional banks, collaborating with National Housing Bank (NHB).
An agreement, mutually accepted by the lender and the applicant, is necessary for implementation of the scheme. The maximum loan tenure offered is 20 years.
While the New Pradhan Mantri Awas Yojana is clear about its goals – affordable housing for all by 2022, it does ensure that the benefits of the scheme are enjoyed largely by women, and the economically backward groups of Indian society.
Pradhan Mantri Yojana 2018
Pradhan Mantri Yojana eligibility:
Applicants will be eligible under the scheme after meeting the following criteria:
1. The applicant should not own a pucca house, in any part of the country, either in his name or any other family member’s name
2. The applicant’s family should not have taken prior central assistance, under any housing scheme, from Government of India
3. The applicant’s family should not have taken any PMAY – CLSS subsidy from any of the Primary Lending Institutions (PLI)
4. One adult female participation is essential for property ownership
5. All Statutory Cities, as per Census 2011, and additional city inclusions, are eligible for coverage under the Mission.
6. This scheme is obtainable for housing loans undertaken for acquisition or construction of house, and repair or extension purpose
7. The age limit for availing the scheme, is 70 years, at the end of the repayment period
New Pradhan Mantri Awas Yojana Application
Here is all the information required to apply for the scheme:
Urban families can apply for the scheme using the online application form, further boosting Digital India Mission. The form consists of two pages, where the prospects need to fill out key information. This simple process is set up by the Ministry of Housing and Urban Development.
The form entails descriptive personal information of the applicant, who is required to fill all the asterisk information.
Key-requisites to fill the form:
Aadhar card verification is essential, to ensure the authenticity of the applicant, and prevention of defraud.
Personal details should be mentioned carefully like family background, residential information, etc.
Who all can apply under PMAY?
1. EWS – the category who earns less than Rs 3 lacs of annual household income
2. LIG- the category of people who have annual household income ranging between Rs 3-6 lacs
3. Medium Income Group (MIG 1) – the category who earns an annual household income below Rs 12 lacs
4. Medium Income Group (MIG 2)- the category, earning household annual income between Rs 12 lacs -18 lacs
5. Minorities – People belonging to Scheduled Cast, Scheduled Tribe, and Other Backward classes, can also avail the benefits of the scheme
6. Women – females belonging to EWG/LIG Category will also be considered
The New Pradhan Mantri Awas Yojana has delivered housing solutions to many people in India. To further simplify the task of property purchase by homebuyers, the government has reduced the GST on home loans from 12% to 8%.