FAQs-Pradhan Mantri Awas Yojana

                
"What is Pradhan Mantri Awas Yojana (PMAY) Credit Linked Subsidy Scheme?  

Credit Linked Subsidy scheme implemented as a Central sector scheme,It is launched by our honourable Prime Minister Shri Narendra Modi for urban 
poor  Economically weaker section (EWS) and Low income group (LIG).In Prime minister latest announcement the neo middle class and the middle 
class categories have been added in the Pradhan Mantri Awaas Yojana in urban areas and one scheme for rural areas. The beneficiary would be 
eligible for interest subsidy for acquisition and construction of house.It is also available for new construction and addition of rooms, kitchen, toilet etc. to 
existing dwellings as incremental housing.  

Who can avail Credit Linked Subsidy Scheme?  

A beneficiary is defined as:  A family comprising of husband, wife and unmarried children Beneficiary should not own a pucca house either in their 
name or in the name of any member of their family in any part of India to receive central assistance under the Mission Meeting income criteria defined 
under the scheme What is the applicable interest subsidy and the loan amount?  The neo middle class and the middle class categories have been 
added in the Pradhan Mantri Awaas Yojana in urban areas.Housing loans of up to Rs 9 lakh and Rs 12 lakh will now get interest subvention of 4 per 
cent and 3 per cent, respectively, in 2017.  Another scheme is being put in place for the neo middle and middle class in rural areas,interest subvention 
of 3 per cent on Up to 2 lakh rupees loan taken in 2017, for new housing, or extension of housing in rural areas.  

How will beneficiary receive the interest subsidy benefit?  

Housing and urban development corporation and National Housing Bank identified as Central Nodal Agencies (CNAs) to channelize this subsidy to the 
lending institutions and for monitoring the progress of this component. Housing Finance Companies and other such institutions would be eligible for an 
interest subsidy.The bank will claim subsidy benefit for eligible borrowers from National Housing Bank (NHB).The NHB will conduct a due diligence to 
exclude claims where customer has submitted multiple request. For all eligible borrowers, the subsidy amount would be paid to the Bank. Once the 
bank receives the interest subsidy, it will be credited upfront to the Loan Account.  

What is the size of dwelling units under Credit Linked Subsidy Scheme?
  
The carpet area of houses being constructed under this component of the mission should be upto 30 square metres and 60 square metres for EWS 
and LIG, respectively in order to avail of this credit linked subsidy. The beneficiary, at his/her discretion, can build a house of larger area but interest 
subvention would be limited to first Rs. 9 lakh only.