Home Home Loan News What is Pradhan Mantri Awas Yojana (PMAY) – Credit Linked Subsidy Scheme 2018

What is Pradhan Mantri Awas Yojana (PMAY) – Credit Linked Subsidy Scheme 2018

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Pradhan Mantri Awas Yojana

Pradhan Mantri Awas Yojana – Get Benefits Even Having House

Apply for home loans under Pradhan Mantri Awas Yojana !  Explore now

If you are looking for your own home under the Pradhan Minister Awaaz Yojana (PMII) scheme, you have nine months to decide on all arrangements, builder and home loan lenders for down payment.

The recent Credit Linked Subsidy Scheme (CLSS) for the MIG Income Group (MIG), known as CLSS for MIG, has been introduced to 1.01.
There will be a year from 2017.

Let’s see who is eligible for the MIG category, can apply everything in the family, how much is the subsidy on the rupee and how the subsidy loan will be affected.

Middle-income earners

The recently introduced new category MIG has two slabs. Middle Income Group (MIG) –
For a family of annual income, I am up to Rs.6,00,001 to Rs.12,00,000.

And, the middle-income group (MIG) – are families that have annual revenues between Rs.12,00,000
From 001 till 18, 00,000. So, earn between Rs 6 lakh and earn Rs 18 lakh per annum.

PMAY Benefits

Pradhan Mantri Awas Yojana Who is Eligible?

The scheme is primarily aimed at providing housing for all. So in order to understand, those who own a home or one of their family members will get out of PMAY‘s profits.

The rule says,

“The beneficiary’s family should not have a pucca home and the beneficiary family should not use central assistance under any housing scheme from the Indian government.” The beneficiary’s family consists of husbands, wives, unmarried sons and/or unmarried daughters. To avoid duplication,
The beneficiary family members apply their Aadhaar numbers for loans.

However, according to the guidelines, “An adult earner (regardless of marriage status) can be considered as a separate home, not a home (all climate residence) house in his / her name.”


Parents (or rentals,
In the same city or in another city), they have got the PMAY for their parents in the home (married or unmarried), but at home rather than at home.

If a married couple is renting their parents home, they will be considered a special home.
However, if they want to take PMAY benefits,
They qualify for a single home, both buy with joint owners or both.

Subsidy under Pradhan Mantri Awas Yojana

In MIG – I category, 4 lakh interest subsidy for individuals up to 9 lakhs, and MIG –
II slab class members Up to 12 lakhs 3 per cent subsidy. If an extra loan is required,
The lender will prove it, but the additional liabilities exceeds the subsidy loan will be at the discounted rate.

NPV Calculation Affordable housing


How much You Can Increase Your Home under Pradhan Mantri Awas Yojana

You are E.W.S. If you take a loan under EWS category, your home will be Rs. A loan of up to 6 lakhs is available. If you take a loan in the LIG category, you will get a loan of up to Rs 6 lakh to increase your home to 60 square meters. If you take more loans than that, you will have to pay Rs. 6 lakhs. This loan is given for 20 years.

If you take a loan under this scheme, you will have to pay Rs. It will save Rs 2.75 target because the total discount on your interest is reduced by Rs 2 lakhs to 67,000 rupees. That means, if you make room, kitchen or bathroom, your total cost will reduce such amount.

Apply Online for Home Loan under PM Awas Yojana Credit Linked Subsidy Scheme

How does PM Awas Yojana work

It is said that the MIG II category will cost Rs 60 lakh. 20% of the mandatory minimum deductible amount is Rs. 12 lakhs and 48 lakh balance of the debt. However, according to PMAY, 3 per cent subsidies will be applicable to Rs 12 lakh, The lender’s home loan interest rate is applicable on a balance of 36 lakhs.

NPV calculation of housing loan under pmay

List of Selected Cites in Telangana under PM Awas Yojana (PMAY)

Pradhan Mantri Awas Yojana (PMAY) – Launched with a goal to provide ‘Housing For All’. This scheme is especially for people living in mud houses or living people. The center offers housing loans with a 6.5 percent interest rate interest rate under the scheme. The Central Government will provide housing loans up to 6 lakhs for eligible beneficiaries.
The number of cities across the country has been selected for affordable housing. The main purpose of this scheme is to provide affordable housing for the low-income group (LIG) and people in the economically weaker section (EWS). This scheme is implemented across the country.Under this scheme, the work to provide affordable housing is completed in three phases. The main purpose of providing BPL households by 2022 is PM Aawas Yojana. Hence construction of the housing will be completed before 2022.Under Prime Minister Awas Yojana, the Central Government has selected 68 cities from Telangana for construction of houses.

Apply for home loans under Pradhan Mantri Awas Yojana !  Explore now

Vemulawada Peddapale Jammikunta Nagarkutnool
Pedda Amberpet Sathupalle Huzurbad Miryalaguda
Parakal Sadasivpet Husnabad Metpalle
Narasannapeta Narayanpet Dubbaka Medak
Medchal Manugur Bhainsa Mahubnagar
Madhira Mandamarri Zahirabad Mahabubabad
Kodada Kothagudem Warangal Khammam
Kalvakurthi Kortala Wanaparthy Karimnagar
Leeja Kamareddy Vicarabad Jangaon
Ibrhampatnam Kagaznagar Suryapet GHMC
Huzurnagar Jagtial Sircilla Gajwel
Devarakonda Gadwall Siddipet Bodhan
Bhupalpalle Belampalle Sangarredy Bhongir
Badangpet Shadnagar Palwancha Armur
Andole- Jogipet Ramagundam Nizambad Adilabad
Yellandu Mancherial Nirmal Achampet
Tandur Kollapur nalgonda Manugur

Documents required to apply for Pradhan Mantri Awas Yojana

Apply for home loans under PMAY !  Explore now

  • KYC Forms & Photograph
  • Aadar Card is mandatory
  • The salary statement for salary slip or certified & salary applicants has been updated
  • Bank statement for past two years income tax returns and self employed applicants
  • Auto-Certificate / Affidavit income proof
  • Customer is responsible for advertising
  • Additional application form

How is the subsidy adjusted in Pradhan Mantri Awas Yojana


The interest subsidy is not different from the total interest rate (the original and the worst rate) but the net subsidy interest rate (NPV) of interest subsidy. This is calculated at a 9 percent discount rate. To calculate the NPV of subsidy, The loan component of each equivalent monthly instalment (EMI) is required to take into consideration the loan repayment schedule required. Later, Use the FX function on the excel sheet to the NPV. Depending on the amount of subsidy, it reduces your loan amount and thus reduces the interest burden.

Rs. Suppose 12 lakh housing loans, 3% interest subsidy of NPV Rs.2.30 lakh. Therefore, the total amount of Rs 12 lakhs is Rs. 2.30 lakh will be deducted and borrowers will be charged on fees 9.

EMI will have to pay Rs 7 lakh.
75 or 9 percent or MCLR based home loan rate bank.

The beneficiary’s credit account is credited to the interest subsidy, thereby lower effective home loan (removal from the principal loan amount) and Equity Monthly Installment (EMI).
The EMI is required to pay the rest of the borrower’s principal loan amount as per agreed document rates.

Loans under Pradhan Mantri Awas Yojana

Apply for home loans under PMAY !  Explore now

PMAY benefits can also be purchased from the secondary market by buying a new home from the developer or builder. A loan can also be taken for building a house.

Curiously, if anyone in the home has a PMAY benefit, it is still possible.
The Government also described the mission of expanding/expanding homes to the ‘Pukka’ homes in CLSS (all houses by 2022). Therefore, a home loan provider cannot refuse the application for seeking home loan in addition to a room, The applicant has a pucca home only for the existing kitchens.

Home area

According to PMAY, the home area is different in all categories, but it is a carpet area. For MIG I, carpet area MIG II consists of 90 square meters (968.752 sq ft) and 110 square feet (1184.03 sq ft). The carpet area is the area inside the walls to lay the carpet.
There is no internal wall thickness in this area.
If you include external walls, balcony and other common areas, it’s a built-up area.

Furthermore, when the lobbies, stairs, elevators, etc. added space, they came to the super-built area. Today’s builders are charging buyers in the Super Built-Up area,
The practice of removing RERA by removing the buyer is based only on carpet areas.

A 110 square foot (1184.03 sq ft) carpet area is about 1480 sq ft, and the difference between them is about 25 percent or more. A 2 BHK can be seen in many areas.
This new evacuation has now made affordable housing scheme available to many people living in urban areas.

Subsidised loans from where

Scheduled Commercial Banks, Housing Finance Companies, Regional Rural Banks, State Cooperative Banks, Urban Cooperative Banks, Small Finance Banks, Non-Banking Financial Company etc.
There is no processing charge for an adequate housing loan in accordance with the proceeds of the Scheme.
Interest subsidy lenders may charge general processing fees for additional loan amounts beyond the eligible loan amounts.


The PMAY scheme may not increase demand for residential houses for MIG buyers.
The expenditure on housing in urban areas of Rs 2.35 lakhs cannot be taken into consideration with a profit of Rs 2.3 lakh.

The Government is expected to stay away from the limit of 90/110 square meters to reduce demand.


The budget was given a status of privilege in 2017, It should help developers to reap the benefits. But for the common man, the timely delivery of the house is still far from dreams. To gain benefits, The builders have completed affordable housing projects in 3 years but now (Budget 2017) should complete in 5 years.

Carefully inspect and analyze all the options before analyzing the affordable housing section, even if you are the first home buyer.

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