Avail benefits under PMAY-CLSS to buy your dream house

'Disclaimer: This story is for informational purposes only and should not be taken as investment advice.'

It is really difficult to own a house while dealing with day to day expenses. But we should not stop dreaming as with careful planning it can surely be fulfilled. 

And yes, if have started planning on this front, consider the scheme under Pradhan Mantri Awas Yojana (PMAY), which is credit linked subsidy scheme (CLSS), which has been facilitated for lower income group/economically weaker section (EWS/LIG) and middle income group (MIG – I & II). 

The information available on India Infoline says that Central government provides financial assistance through lending Institutions to eligible beneficiaries across all statutory towns as per 2011 census and their adjacent planning area (updated by the government from time to time) under this scheme. 

The interest subsidy is extended through two central nodal agencies - National Housing Bank (NHB) and Housing & Urban Development Corporation (HUDCO). Futher, the government bodies channelize subsidy to the lending institutions and they help applicants to avail subsidy.

IIFL says that an applicant can avail maximum interest subsidy upto Rs 2.67 lakh provided by the Central government and the same is credited to the beneficiary’s loan account. 

Therefore, a beneficiary receiving subsidy of Rs 2.67 Lakh on a loan amount of Rs 20 Lakh for 20 years loan tenure, at an interest rate of 8.5% actually gets loan at an effective home loan rate of 6.61%, explains the IIFL.

Futher, EWS and LIG households/families, whose annual household income is upto Rs 6 lakh, can easily avail subsidy under this scheme, provided they do not own a pucca house in any part of India. 

The Central government has also introduced interest subsidy on housing loans for MIG households/families from January 1, 2017, informs IIFL, and adds that applicants with annual household income between Rs 6-12 lakh in urban areas fall into the MIG 1 category and Rs 12-18 lakh fall under MIG 2 category.