Pradhan Mantri Awas Yojana (PMAY) has attracted a substantial amount of confusions regarding some of its provisions in recent times. Persquarefeet has accumulated some of the frequently asked questions on PMAY in order to help the home buyers in understanding the scheme and its advantages better.

One of the government’s most famed and ambitious endeavors, PMAY has been able to attract many eyeballs right from its initiation.With the vision of developing crore housing units for the households in need across the nation, PMAY has already been implemented in various urban and rural areas with great success. The government has been able to construct nearly 78 lakh homes in the rural areas and over 19 lakh in urban areas till now. In urban areas, a total of 79 lakh homes has been approved to be developed by the year 2022.

The Credit-Linked Subsidy Scheme (CLSS), an exclusive approach to offer rebated funds to the recipients under PMAY, has emerged as a huge success in the last few years. The government has already handed out Rs 75000 crore of financial subsidy as an assistance to the selected beneficiaries under CLSS. This avenue has been much discussed and properly advertised in order to reach the masses. However, a clear absence of awareness about itcan still be witnessed among the real beneficiaries.  Persquarefeet, with the objective of clearing some of the major doubts which can assist the beneficiaries, has listed down some of the most frequently asked questions on PMAY.

PMAY FAQs

Can I transfer my existing home loan under CLSS?

The transfer of thealready existing home loans can only be carried out if the borrower matches the criteria set under CLSS, which is based on the income and targets the Economically Weaker Sections (EWS). The most amount of financial assistance has already been designated based on the measurement of homes and the incomes for LIG, MIG 1&2, and EWS.

Is there a processing fee for availing loan under PMAY?

For the borrowers, there is no defined charge. The lender, however, is paid a processing charge worth Rs 3000 by the government in the center.

Will I be eligible for the CLSS scheme if I am a co-applicant of my father’s home loan for a property owned by him?

You will not be able to qualify for CLSS advantages under PMAY if you are a co-borrower of any other home loan. The scheme at the very basic level goes with the vision of “Housing for All”. So, in case a person or any of their family members already have a pucca house of their own, then he or she will not be eligible for any kind of subsidy in a home loan under CLSS.

Is it mandatory to have women ownership to avail PMAY subsidy?  

In the case of EWS and LIG families, it is compulsory to enlist the home in the name of any of the female members of the family for receiving PMAY advantages, a male member, however, can be a joint owner. Coming to the MIG 1 & 2 categories, any member of the family can be the homeowner.

Do all flats come with PMAY benefits?

All the flats don’t come with the PMAY advantages. A set of standards defining the eligibility of flats coming under the different categories has been structured by the government.

For the EWS category, recipients with a family income of less than Rs 3 lakh per year can buy a home up to 30 sq m. The yearly income of the recipients coming under the LIG category must fall between Rs 3 and 6 lakh in order to buy a home of the carpet area up to 60 sq m.

The scheme has been expanded for homes of the carpet area up to 160 sq m in the MIG 1 category with yearly income falling between Rs 6 and 12 lakh. A buyer coming under the MIG 2 category with a yearly income between Rs 12 and 18 Lakh can purchase a home of the carpet area up to 200 sq m.

Does land purchase come under Pradhan Mantri Awas Yojana?

No piece of land can be bought under PMAY. This project has been devised to offer only homes at subsidised rates to the Indian families.

Is there a limit on the home loan amount under PMAY?

While there is no such limit on the loan amount under PMAY, but beyond a predefined point, the applied interest attracts non-subsidised rates. For instance, a family coming under the MIG 1 category can get a loan of Rs 9 lakh at four percent interest, which is subsidised rate. If the amount exceeds Rs 9 lakh, normal interest rates would be applied on the remaining amount.

When will the CLSS subsidy be transferred to me? Will it lower my EMIs?

If you meet the eligibility criteria, the subsidy would be transferred to you during the loan disbursement. Please note that the subsidy scheme can only be utilized by the borrowers who are completely eligible. The recipients will get to relish lower EMIs or lower tenure under the PMAY subsidy scheme.

Disclaimer : The perspectives communicated above are for instructive purposes which are simply dependent on industry outlines and related documents. Per Square Feet does not ensure the exactness, perfection, or the absolute quality of the data and will not be considered in charge of any reaction dependent on the published data.