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Pradhan Mantri Awas Yojana (PMAY) – Credit Linked Subsidy Scheme (CLSS)

Pradhan Mantri Awas Yojana (PMAY)

Pradhan Mantri Awas Yojana (PMAY) – Credit Linked Subsidy Scheme (CLSS): One of the basic requirements of every human being is owning a home. However, buying a house in India is like a dream come true for many people. In India, only high-income groups and some middle-class people can buy their dream house. There is no substitute for accommodation in the low-income group. To overcome this issue, Credit Linked Subsidy Scheme (CLSS) under the Pradhan Mantri Awas Yojana (PMAY) is introduced by the government of India that aims to make the dream of owning a house for thousands of Indians a reality. Under this scheme, the government will be financially assisting the Economically Weaker Section (EWS), Low Income Group (LIG) and Middle Income Group (MIG) in order to achieve its primary aim to provide the home for all.

In order to empower people to get their dream home, the Honorable Prime Minister Shri Narendra Modi has announced a comprehensive and progressive mission, ‘Pradhan Mantri Awas Yojana –  Credit Linked Subsidy Scheme (CLSS)’. Under this scheme, the Central Government provides financial assistance through the credit institutions for eligible beneficiaries in all the statutory towns as per the census of 2011 and the planning area near them (updated by the government from time to time). Through this scheme, the applicant is eligible to avail interest subsidy on the purchase or construction of a house. The PMAY by Indiabulls home loan scheme is also available for the enhancement of existing house.

PMAY scheme consists of two important aspects. First, the objective is to change the slum areas by constructing houses with the help of private developers. Second, it plans to provide the credit-linked subsidy to the weak and middle-income groups on the loans taken for the renovation of new homes or existing homes.

Objectives of the Pradhan Mantri Awas Yojana (PMAY):

The Pradhan Mantri Awas Yojana was initiated in 2015 with a view to serving a number of purposes:

  • To ensure that poor sections of urban India can live under their own roof.
  • To provide financial assistance to those people who cannot afford the full cost of building residential property.
  • This scheme makes sure that buying a home would be affordable for the people belonging to minorities such as Scheduled Castes and Scheduled Tribes, economically challenged groups, women, etc.
  • To offer homes to economically weaker sections of society.
  • To bring both public and private sectors together for improving the fate of the urban poor population of the country.
  • Rehabilitation of existing slum dwellers with private sector participation using land as the resource.
  • Affordable housing with the support of private and government financing.

Features of Pradhan Mantri Awas Yojana (PMAY):

  • The Indian Government will provide interest subsidy of 6.50% on the benefit of home loans for the period of 20 years from the beginning of their loan period by the beneficiaries.
  • The actual amount of subsidy has been approved by the National Housing Bank (NHB).
  • Due to its priorities to female applicants in the family, this scheme can be called as a pro-woman scheme.
  • During the allocation of houses under the PMAY scheme, prioritization of allotment of land will be given to senior citizens and given to different people with different capacities.
  • A woman has to be owner or co-owner of the property.
  • All the houses built under PMAY scheme will be done through technology and will be environmentally friendly compliance.
  • Eco-friendly and environmental methods will be used for the build of houses during the construction process. This will be a bold step towards making an environmentally safe home for individuals.
  • Once the subsidy issued will be credited directly to the account of the borrower and will be adjusted against the principal loan amount of the borrower. Therefore, the outstanding principal of the loan will be reduced, resulting in EMI will decrease.
  • While allocating the houses on the ground floors, the physically disabled and the senior citizens will be given a higher priority.


  • Only people who belong to the Economically Weaker Section (EWS), Low Income Group (LIG), Middle Income Group-I (MIG-I) and Middle Income Group-II (MIG-II) are eligible for PMAY scheme.
  • The beneficiary family should not have a permanent house in any part of India in the name of any member of their family.
  • Age of the applicant should be 70 years or less.
  • In the case of the married couple, both husband or wife or both of them together will be eligible for a subsidy in joint ownership.
  • The beneficiary family has not received Central assistance under any housing scheme from the Government of India and there should not be any benefit under any scheme in PMAY.
  • Every family who buys a home under PMAY scheme will get the subsidy on the basis of their income.
  • Your household income is between 6 to 18 lakhs, including the combined income of both husband and wife.
  • If your spouse is also claiming interest subsidy for the home, you cannot take advantage of this scheme.

Read More: Pradhan Mantri Awas Yojna (PMAY)

Interest Rate:

Categories Annual Household Income Interest Subsidy (%) Subsidy Calculated on Max. Loan of Max. Interest Subsidy of Max. Carpet Area of the Property
EWS Up to Rs. 3 lakh 6.50 % Rs. 6,00,000 Rs. 2.67 Lacs No Limit *
LIG Above Rs. 3 lakh and up to Rs. 6 lakh 6.50 % Rs. 6,00,000 Rs. 2.67 Lacs No Limit *
MIG-1 Above Rs. 6 lakh and up to Rs. 12 lakh 4.00 % Rs. 9,00,000 Rs. 2.35 Lacs 1291 sq. ft.
MIG-2 Above Rs. 12 lakh and up to Rs. 18 lakh 3.00 % Rs. 12,00,000 Rs. 2.30 Lacs 1614 sq. ft.

* For purchase/construction of new property


Purpose Documents
Proof of identity (any 1)
  • PAN card
  • Aadhar card
  • Voter id card
  • Driving licence
  • MNERGA number
Proof of address (any 1)
  • Voter Id
  • Electricity bill
  • Telephone bill
  • Driving licence
Proof of category
  • SC/ST/OBC/Minority certificate
Proof of nationality (any 1)
  • Passport
  • Aadhar Card
  • Birth certificate
Proof of income
  • Copy of Form 16 for last 2 years
  • Income Tax returns and bank statements

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