- When can I get PMAY Subsidy into my account?
- Know about the overall process to avail of PMAY Subsidy while opting for a Home Loan.
To encourage affordable housing for individuals in India, the government of India launched Pradhan Mantri Awas Yojna (PMAY) in 2015. This scheme was launched aiming to provide ‘Affordable Housing for All’ by 2022, especially for the people coming from the Middle-class and Economically Weaker Section (EWS) living in the Urban Areas. This scheme is only for those customers who are buying their homes for the first time.
Individuals can get the subsidy on the interest amount when they opt for a Home Loan from any lender through the PMAY Scheme. This subsidy component of PMAY is known as the Credit Linked Subsidy Scheme (CLSS). PMAY scheme enables customers to get the concession on the interest part of their home loans. The CLSS scheme is available to EWS and Lower Income Group, Middle Income Group-1 and Middle Income Group-2.
This interest subsidy varies according to the income slab in which individuals fall under. While opting for the PMAY, individuals often ask this question – How much time it takes to get the PMAY Subsidy? If you are also someone who is finding the answer to this question, consider yourself in the right place. This article will help you know the answer and other things related to it. So, keep reading!
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When Will You Get PMAY Subsidy?
The primary aim of PMAY is to encourage first-time homebuyers from Middle Income Group (MIG) to opt for Home Loans so that the dream of ‘Housing for All by 2022’ can be achieved. There are basically two-income slabs in MIG – MIG-1 (With Annual Income of INR 6 lakh to INR 12 lakh) and MIG-2 (With Annual Income of INR 12 lakh to INR 18 lakh). PMAY scheme will ensure to provide the subsidy on the interest to these individuals via CLSS. Simply put, the government will provide a subsidy on interest at 4% per annum to MIG-1 and 3% per annum to MIG-2 customers. The maximum home loan amount that comes under the CLSS scheme is fixed at INR 9 lakh for MIG-1 and INR 12 lakh for MIG-2. According to this, MIG-1 customers can get a maximum subsidy amount of INR 2.35 lakh, while it is fixed as INR 2.30 lakh for MIG-2 customers.
Now the most important question arises – When does a customer receive the subsidy amount in his or her Home Loan Account? Well, the answer to it cannot be so simple. The government verifies all the details provided by you and only after the verification is done, the subsidy is released. Generally, it takes 3-4 months. We are showing all the details related to this process. Do check.
After applying for a PMAY Home Loan at the bank or any other lending institution, a customer will receive an application ID. This Application ID will be very important for an individual to track the status of CLSS starting from the submission of application till subsidy releases. Other than this, customers will also get application status through SMS Alert at various steps.
So how can an individual track the CLSS Status? For this, an individual needs to visit the official website of PMAY where he/she will see the CLSS Awas Portal (CLAP). On this portal, there will be five steps to get the PMAY Subsidy into the Home Loan Account. All the steps are mentioned below. Please do check.
- Generation of Unique Application ID
- Due Diligence by Primary Lending Institution (PLI)
- A claim regarding the subsidy gets uploaded on the Central Nodal Agency Portal
- Subsidy Claim Approval
- The subsidy will be released to the PLI
On receiving the subsidy into the Home Loan Account, an individual can check it in his or her Loan Account Statement. After receiving the subsidy, the EMI amount will also be reduced than before. Let’s see how. For example, a MIG-2 customer opts for a home loan amount of INR 50 lakh. The subsidy amount for the same will be INR 2,30,000 approximately. So, this subsidy amount will be reduced from the loan amount and the new loan amount will be INR 47,70,000. Now, the individual would pay EMIs on the reduced loan amount of INR 47,70,000.
What is the Process to get PMAY Subsidy?
Now you have information about the time it takes to get a PMAY Subsidy into your Home Loan Account, it is important to know the overall process to get it in the first place. First, the important thing is, you must be eligible for a PMAY Subsidy i.e. you must be in the income slab fixed by the government of India and must meet the other conditions set by the lender.
If you are eligible for PMAY Subsidy benefits, and for some reason you haven’t availed the same while taking a home loan from the lender, you don’t need to worry. You can always make the request later. After the request, the lender will verify all the home loan details and your claim. Thereafter, the lender will submit this claim to the National Housing Bank (NHB) that will release your subsidy after the overall authentication.
We are showing the overall process below. Have a look.
- First, you will need to download the ‘Self Declaration Form’ from the official website of your lender. In this form, you will need to fill details like your name, parents’ name, age, address, your category, details about your family member, their Aadhaar Numbers, Annual Incomes, etc.
- After filling all these details, you will need to submit this duly-signed form at the nearest branch of your lender.
- Remember to carry your original ID Proof so that the lender can verify your details.
- Aadhaar Card is mandatory when you are availing PMAY Subsidy, so you need to carry the original Aadhaar Card of all the mentioned family numbers on the Self-declared form.
You also need to keep this fact in mind that the self-declaration form must have signatures of all applicants and co-applicants (if any). Other than this, it is important that you provide correct details about all your family members.