Yay, PMAY! – Home Buyers, it’s time to Cheer

Yay, PMAY! – Home Buyers, it’s time to Cheer

Last Updated : March 25, 2022, 3:35 p.m.

In the recently concluded Press Conference, Nirmala Sitharaman announced the extension in the last date of Pradhan Mantri Awas Yojana (PMAY) Credit-Linked Subsidy Scheme (CLSS) for the individuals both in category MIG-I and MIG-II.

Before today, the last date for anyone who wants to enjoy the benefits of PMAY CLSS scheme was March 31, 2020. After the extension, you can avail the benefits till March 31, 2021. However, the date will be March 31, 2022 for the LIG/EWS category.

The main objective behind this extension is to make sure that people coming from the lower strata of the middle class families can be benefited more. According to the estimation, more than 2.5 lakh families from the middle class background will be able to enjoy the benefits from this extension of the date. The annual income must be between INR 6 lakh to INR 18 lakh.

Some of us are looking to buy their first home. Others, stay with parents, but want to buy another home. Regardless of your need, home-buying comes across as daunting. And to make matters worse, you feel as though the government doesn’t care about the middle class and you’re completely on your own.

Apply for Home Loan under PMAY

To know more about PMAY read below the following:

  • Benefits of CLSS under PMAY
  • Eligibility for interest subsudy scheme
  • Banks offering housing loan under PMAY – CLSS scheme
  • Minimum income required to avail the benefit
  • Other frequently asked questions

Now, we’ve been hearing a lot about Pradhan Mantri Awas Yojana or PMAY. So, what’s the hype about? Is this just another lofty Government Subsidy programme aimed at a rural audience? Or is it relevant to regular home buyers? Well, rest your cynicism for a bit as you might be in for a pleasant surprise!

GST Council has recently lowered GST on affordable housing schemes from 12% to 8% which is available to only those who are eligible under PMAY Credit Linked Subsidy scheme . Post the implementation of this new tax, which started from January 25, 2018, if you buy an Under Construction property, and are eligible for PMAY, you will be liable to pay a concessional GST on the property which is 4%. However, those who are not eligible under PMAY subsidy scheme will not be eligible to get the interest subsidy on home loans and will have to pay the complete 12% tax.

Carpet Size for Housing Loan under PMAY Increased

The government has approved 33% hike in the carpet area for hosues eligible under PMAY interest subsidy scheme. The Housing and Urban Affairs (HUA) Ministry announced that the carpet area of houses has been enhanced to 160 sq m from 120 sq m for Middle Income Group-I (MIG-I), while the same has been increased to 200 sq m from 150 sq m in case of MIG-II.

Wishfin dives in deep into PMAY so that you get to know what’s in there for you. If you have a question about PMAY, there’s a good chance you’ll find your answer here… and maybe the key to your first home! Can’t find your question in the list? Just Tweet or Comment asap – we’ll not only answer it but also add it to our FAQs for the benefit of others Home Wishers.


What is PMAY?

Stands for Pradhan Mantri Awas Yojana, a scheme designed to enable housing for all, including the middle class.

What is CLSS? And what’s the other jargon – MIG, LIG, EWS, etc?

Stands for Credit Linked Subsidy Scheme where the government chips in to reduce your Home Loan Burden.

  • MIG 1: Middle Income Group (Income – INR 6 lac to INR 12 lac per annum)
  • MIG 2: Middle Income Group (Income – INR 12 lac to INR 18 lac per annum)
  • EWS: Economically Weaker Sections (Income – up to INR 3 lac)
  • LIG: Low Income Group (Income – up to INR 6 lac)

What are the benefits of CLSS under PMAY?

Simply put, huge Savings on your Home Loan Interest Rates ! If you’re out to buy your first home,

  • You can SAVE an amazing 4% in terms of interest for a loan of up to 9 lacs if your income is up to INR 12,00,000 per annum (you will fall under the CLSS MIG 1 Category)
  • You can SAVE a cool 3% interest for a loan up to 12 lac if your income is from INR 12,00,000 to INR 18,00,000 per annum (you will fall under the CLSS MIG 2 Category)
  • Income lower than INR 6,00,000? Then the Savings are even more substantial! A massive 6.50% interest concession awaits on loans up to 6 lac. (You will fall under the CLSS EWS/LIG Category)

Sounds great on paper. But how will the Savings get transferred to me? What happens to my EMIs?

Here’s the best part: The bank servicing the loan will claim on your behalf and will credit it upfront to your Loan Account! And you will pay EMIs on your effectively reduced loan amount.

Am I eligible?

You will be if:

  • You or your immediate family (spouse and unmarried children) do not own a ‘pucca’ home anywhere in India. (you qualify, even if your parents own a home and you stay with them)
  • Your income is up to INR 6,00,000 per annum [to avail CLSS: EWS (Economically Weaker Sections) or CLSS: LIG (Low Income Group)]
  • Your income is from INR 6,00,000 to INR 12,00,000 per annum [to avail CLSS: MIG 1 (Middle Income Group 1)]
  • Your income is from INR 12,00,000 to INR 18,00,000 per annum [to avail CLSS: MIG 2 (Middle Income Group 1)]

What’s the Tenure of a Home Loan under CLSS?

A maximum of 20 years.

Is there a Limit on the Loan Amount under PMAY?

There is no limit on the loan amount (amount eligibility will be determined by the bank based on a variety of criteria). However, the subsidy benefit will be limited to a specific loan amount depending on the income category you fall under.

Is there any size restriction for Houses availed under PMAY CLSS?

Well, you can build or buy as large a house as you wish, but the PMAY will only cover you for a carpet area of 30 sq. m. for the EWS Category and 60 sq. m. for the LIG Category.

Is there a processing fee?

Not at all! There is a zero processing fee for Home Buyers availing a Home Loan under PMAY CLSS.

Do I have to wait long to get a CLSS Home Loan approved?

The good news is that if you match the eligibility criteria and have all the required documents, you can expect a quick approval from the lender.

Are there any specific documents I need for CLSS?

You just need a document declaring that you do not own a ‘pucca‘ house. This is, of course, in addition to all other documentation typically required while a borrower applies for a Home Loan.

I already have a Home Loan for my first home. Can I avail of the PMAY CLSS benefit?

Unfortunately, not. The scheme is designed to encourage first-timers to buy their first house.

Say, I have taken a Home Loan under PMAY from a Bank (Primary Lending Institution). Can I Balance Transfer it to another Bank?

You cannot Balance Transfer it to another bank without losing the PMAY benefit. Well, one can’t have everything.

Great! Where can I avail the PMAY? How do I get started?

70 Financial Institutions in partnership with NHB (National Housing Bank) are PMAY-ready. And how do you choose between these? is a great way to compare and get started!

But, how will I apply and can I do it online?

You can apply directly to any of the 70 Prime Lending Institutions (PLIs) comprising banks, small finance banks and other financial institutions. These institutions will verify the application before sanctioning the loan backed with CLSS benefits. You can even apply online at Wishfin for such affordable housing loans. The experts here will guide you at each step towards procuring the loan.

How long the PMAY CLSS Scheme is going to continue?

Hurry up, the last date is approaching near i.e. 31st March 2022. However, the scheme no longer exists for EWS and LIG applicants. Only MIG-I and MIG-II applicants can apply now.

For more details on the scheme, please refer to the official govt. source

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