Beneficiaries Women, st/sc, LIG, EWS, Handicap, Senior Citizen of PMAY
The main objective of PMAY is to provide good housing facilities to the common masses of the country. The beneficiaries of the Awas Yojana will get housing loans and other assistance for building pucca houses. This housing scheme is scheduled to be completed within mid 2022. The govt. has listed some beneficiaries under this scheme who will get housing assistance from the govt. to build pucca houses. Housing loans to those beneficiaries will be given in subsidized interest rates and the govt. will also assistance in paying of the housing loan.
What the government has declared as the main beneficiaries of PMAY?
As per recommendations by the central government, there are some listed groups of citizens of the country who will be considered as the beneficiaries of the PM’s Awas Yojana. According to the plan, by 2022, citizens who belong to lower income groups, financially poor categories, backward classes like Scheduled Castes, Scheduled Tribes, Women, etc. will get their pucca homes made under this scheme. The main idea of the PM Awas Yojana is to support woman empowerment. So the Govt. has made it mandatory to give away the new pucca homes by the name of female citizens.
Women as the registered beneficiaries of the new houses
To support the cause of women empowerment in the country in both cities as well as remote villages, the govt. has decided to give away pucca homes to the women of the country. According to the scheme, the govt. has made it necessary that for a family to get enlisted in the PM Awas Yojana, one registered owner of the house must be a woman. So it is advisable to register the property in the name of wife or mother. But in PMAY, it is mandatory to get the house registered under the name of a woman of the family. The new pucca house may be totally registered under the name of one woman of the family or a joint account where one registered owner is a woman.
PMAY for Economically Weaker Sections (EWS)
People belonging to the EWS category are those families who have annual income of less than Rs. 3 lakh. They will be given housing facilities with the help of credit linked subsidy. They will get loans for new pucca houses under the PMAY scheme and also they may opt for financial help to repair or make extensions of their old houses.
PMAY for Lower Income Groups (LIG)
LIG category refers to those families which have monthly income ranging between Rs. 5 – 10 thousand. The central govt. will provide subsidy on the housing loan facilities to those families of LIG. The subsidy amount may range from Rs. 1 – 2.5 lakh.
Scheduled Castes and Scheduled Tribes as beneficiaries of PMAY
Families of SC and ST categories will get subsidy for building new pucca houses under the PM Awas Yojana. Easy EMI schemes and long payback period of 20 years will be there.
Complete Details of EWS/LIG CLSS for Home Loan Under PMAY 2017
Union Government has rolled out updates for Pradhan Mantri Awas Yojana’s housing loan scheme geared towards the LIG people and EWS people. LIG is the acronym for Low Income Group while EWS is the acronym for Economically Weaker Sections.
Previously, the housing loan that was offered under PM Awas Yojana had a tenure of 15 years. The new update increased the tenure to 20 years. The Credit Linked Subsidy Scheme or CLSS was previously available only for EWS people and LIG people. However, with the new update, this subsidy scheme is now made available also for the MIG people. Thus, the previous CLSS has now been renamed as EWS/LIG CLSS.
Thus, EWS/LIG CLSS categorizes only the people from Economically Weaker Sections and people belonging to Low Income Group as the beneficiaries. Simply put, only these people will be eligible for housing loan under PMAY’s CLSS. Such housing loans will be made available Housing Finance Companies (HFCs), Banks and other financial companies.
These beneficiaries will receive interest subsidy of 6.5% for loan amounts not exceeding INR 6 lakhs for the period of 20 years or for loan term – whichever is shorter.
Let us take a look at the highlights of the scheme for EWS / LIG people…
EWS / LIG CLSS Housing Loan Scheme Highlights
Here are the highlights:
- The scheme will not offer credit linked subsidy for any loan amount that exceeds INR 6 lakhs. Anything over and above INR 6 lakhs will attract market or non-subsidized interest rates.
- The scheme will not provide interest subsidy in bulk at the end of the repayment period. Rather, the subsidy amount will be calculated up front and then paid directly into the loan account of the beneficiary eligible for the subsidy. This will effectively reduce the actual / principal loan amount. As a result, the Equated Monthly Installments or EMIs will be reduced.
- Interest subsidy to be provided will be calculated using NPV (which is the acronym for Net Present Value) using a discount rate, which has been set at 9%.
- Any house acquired or constructed under this scheme using assistance from Union Government should be registered only and only in name of family’s female head. Alternately, the property can be registered in joint names of family’s female head and male head.
- The only condition where the beneficiary (the person on whose name a property will be registered) will be allowed to be a male member of the family is when the family doesn’t have an adult female who can be counted as female head of the family.
- The properties constructed under PMAY will be located in Statutory Towns that have been mentioned in 2011’s Census Data. Apart from that, those towns that receive central notification will also be the areas where PMAY properties will be located. Also, with respect to 2011’s Census Data’s Statutory Towns’ planning areas will be covered.
Home Loan and Subsidy Details for EWS / LIG Under PMAY
In case you have been looking for home loan details and subsidy details targeted towards EWS and LIG people under the Pradhan Mantri Awas Yojana, here are the relevant details:
- Maximum Amount of Loan that Will be Granted to a Beneficiary: This amount will be decided by PLIs or Primary Lending Institutions (such as HFCs, Banks etc.) after they complete the due diligence. Based on a customer’s eligibility, PLIs will decide the amount of loan that can be granted.
- Maximum Tenure of Loan that Will be Granted to a Beneficiary: As before, the PLIs will be in charge of deciding on the loan tenure for the customers.
- Maximum Loan Tenure that Will be Used for Calculating Subsidy Amount: This is determined by PMAY guidelines and has been capped at 20 years, maximum.
- Maximum Loan Amount that Will be Eligible for Subsidy Under CLSS: This has been capped at INR 6 lakhs for EWS and LIG people. A person may apply for and receive a loan amount greater than INR 6 lakhs but the subsidy will be given only for INR 6 lakhs. For the remaining loan amount, market interest rates or non-subsidized interest rates will be applicable.
- Interest Rate to be Provided for Subsidy: It has been set to 6.5% by PMAY guidelines.
Here is a quick table which shows the subsidy amount one can get, EMI applicable prior to subsidy and EMI applicable post-subsidy, savings one can enjoy per month and savings one can enjoy in a whole year:
| Amount of Loan | Amount of Loan that Will Enjoy Subsidy | Interest Subsidy to be Received by Beneficiary | Loan Amount After Subsidy Credited to Loan Account | EMI Applicable Before Subsidy (Assumed Interest Rate is 10%) | EMI Applicable Post-Subsidy | Savings Per Month | Savings Per Year |
| INR 3 lakhs | INR 3 lakhs | INR 1,33,640 | INR 1,66,360 | INR 2,895 | INR 1,605 | INR 1,290 | INR 15,480 |
| INR 6 lakhs | INR 6 lakhs | INR 2,67,280 | INR 3,32,720 | INR 5,790 | INR 3,211 | INR 2,579 | INR 30,948 |
| INR 10 lakhs | INR 6 lakhs | INR 2,67,280 | INR 7,32,720 | INR 9,650 | INR 7,071 | INR 2,579 | INR 30,948 |
The above table is just an example with three different loan amounts. Your loan amount can be different and hence, EMIs after Subsidy will also change and so will the monthly and annual savings.
Are There Any Eligibility Conditions for CLSS Housing Loan for EWS / LIG People?
Yes, there are eligibility conditions. Those conditions are mentioned below:
- The family of the beneficiary should be composed of the following people:
- Wife
- Husband
- Unmarried children
- Under no circumstances, the family of the beneficiary should have possession of any pucca house anywhere in India. This means that neither the beneficiary herself / himself and nor anyone in beneficiary’s family can own pucca house.
- Those families that declare themselves as EWS households should, under no circumstances, have annual family income exceeding INR 3 lakhs.
- Those families that declare themselves as LIG households should, under no circumstances, have annual family income exceeding INR 6 lakhs. The minimum annual income they should have is INR 3 lakhs and 1 rupees.
- Of all eligible beneficiaries under EWS / LIG CLSS, the following beneficiaries will get preference:
- Manual Scavengers
- Women (Widows will get more preference)
- Working single women
- Scheduled Tribe category people
- Scheduled Caste category people
- Backward Castes category people
- People belonging to minority groups
- Transgender people
- People who have disabilities
Allowed Construction Area
The EWS / LIG CLSS Housing Loan component of PMAY says:
- Carpet area for new house construction for EWS people should not exceed 30 square meters.
- Carpet area for new house construction for LIG people should not exceed 30 square meters.
- Carpet area for extension or incremental housing for EWS people should not exceed 30 square meters.
- Carpet area for extension or incremental housing for LIG people should not exceed 60 square meters.
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