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Pradhan Mantri Awas Yojana





The credit linked subsidy scheme (CLSS) on home loans under the Pradhan Mantri Awas Yojana has been extended till March 2019. Find out if the lower interest rate has brought your dream house closer to realisation
Eligible: You'll get the subsidy if...
1. Your household income is between Rs 6-18 lakh. This includes combined income of husband and wife. 2. You are buying your first house
3. It is a new construction.

Not Eligible: But you won't get the subsidy if...
1. Your family has already availed of central assistance under any housing scheme in the past.
2. You already own a house in India, either in your name or in the name of a family member.
3. Your spouse is also claiming interest subsidy for a house.
What does the scheme offer?
Basic features of the interest subsidy scheme

Note: Any loan beyond these amounts for MIG I and MIG II will be at prevalent intrest rate and is not subsidized by government





Impact under MIG II
Borrowers get an interest subsidy of 3%

Annual income: Rs 14 lakh per annum

All figures are in Rs. For tenures of over 20 years, tenure of 20 years has been considered for the purpose of calculation of interest rate subsidy.
How to get the subsidy
1.Apply for home loan from a primary lending institution seeking subsidy.
2. If eligible for subsidy, your application will be forwarded to the Central Nodal Agency (CNA).
3. If it's approved, the CNA will disburse the subsidy amount to the lender.
4. This will be credited to your account, thus reducing the total loan amount.
5. For instance, if your annual income is Rs 7 lakh and the loan amount is Rs 9 lakh, the subsidy will be Rs 2.35 lakh.
6. When this is deducted, the loan is reduced to Rs 6.65 lakh. You will pay EMI on this lowered amount.
7. If the loan amount is higher than the maximum amount eligible for subsidy, the excess will attract interest at the prevalent rate