Attention homebuyers! Last date to avail subsidy for MIG-I, MIG-II scheme of PMAY CLSS is March 31

ET Now Digital
Updated Mar 26, 2021 | 06:10 IST

To avail this subsidy, the borrower's income should be less than Rs 3 lakh under the economically weaker section (EWS) category

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Attention homebuyers! Last date to avail subsidy for MIG-I, MIG-II scheme of PMAY CLSS is March 31 

New Delhi: The last date for homebuyers of MIG-I and MIG-II categories, wishing to avail of the subsidy under the PMAY CLSS, is March 31, 2021. The other category of LIG/EWS, however, has its last date of March 31, 2022.

The Credit Linked Subsidy Scheme (CLSS) for Middle Income Group (MIG) to be called CLSS for MIG I and MIG II, which was initially approved for implementation for the year 2017 has been extended up to March 2020. However, the government on 14th May, 2020, announced the extension of the deadline for the affordable housing CLSS scheme for 1 year, that is, till March 2021.

Finance Minister Nirmala Sitharaman in her press conference in May 2020 had announced the extension of the last date of the Pradhan Mantri Awas Yojana (PMAY) Credit-Linked Subsidy Scheme (CLSS) both for the MIG-I and MIG-II categories till March 31, 2021.

In order to receive this subsidy borrowers have to meet certain eligibility criteria. A borrower has to fulfill three simple criteria in order to be eligible to receive subsidy under the scheme. One, the borrower's income should be less than Rs 3 lakh under the economically weaker section (EWS) category. In the low income group, their income should be between Rs 3-6 lakh. For both the above sections the maximum subsidy amount is fixed at Rs 2.67 lakh. To apply in the middle-income group, a borrower's income should be between Rs 6 lakh-12 lakh (for MIG-I) and of Rs 12 lakh-18 lakh ( for MIG-II). In this category the maximum subsidy amount is Rs 2.3 lakh and Rs 2.35 lakh respectively. The credit-linked subsidy is available only for loans up to Rs 6 lakh for EWS and LIG categories, of up to Rs 9 lakh in case of MIG-I borrowers and up to Rs 12 lakh for the MIG-II category.

Second criteria says the borrower shouldn’t own a house already and the third criteria says a woman should be the co-owner and co-borrower of the property.

To get this subsidy, the borrower need to apply for the loan to the lender under PMAY scheme with CLSS subsidy. Once the loan is sanctioned, the lender checks the eligibility criteria of the borrower for the subsidy. If the borrower meets all the eligible criteria, the lender initiates a claim for the subsidy from central nodal agencies (CNAs). At present, there are three CNAs—Housing and Urban Development Corp. (HUDCO), National Housing Bank (NHB) and State Bank of India. The CNAs cross-check the application and release the funds directly to the borrowers' loan account so that the principal amount gets reduced and the EMI falls subsiquently. It generally takes up to 6 months to receive the funds from the CNAs after submitting your subsidy application with the CNAs.

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