The “Credit Linked Subsidy Scheme” (CLSS) under Pradhan Mantri Awas Yojana (PMAY) was introduced by the government of India. The PMAY subsidy scheme apprehended the vision of housing for all by the year 2022. Continuation of the PMAY scheme has been approved by the cabinet beyond the year 2019-20 up to 2021-22 in the next finance commission cycle, after due appraisal and approval based on third party evaluation of scheme/programme as per the extant procedure
The interest subsidy on purchase/ construction/ extension/ improvement of the house is provided to customers who belong to. the Economical Weaker Section /Lower Income Group /Middle Income Group. It has two components: PMAY Urban and also PMAY rural for the rural poor. This scheme is merged with other schemes to ensure that eligible families can enjoy basic facilities like electricity connection, LPG gas connection, and access to clean drinking water and banking facilities, etc.
PMAY makes the housing loan affordable as the subsidy provided on the interest component reduces the outflow of the loan. The housing loan EMI calculator gives a clear understanding of the amount to pay towards EMIs and helps make an informed decision about the outflow towards the housing loan.
The PMAY subsidy scheme also focuses on inclusion of additional eligible households from the final list into the permanent waitlist (PWL) of PMAY-R. The Ceiling of 1.95 Cr were on priority for those States / UTs where PWL is debilitated. With the approval of the rural development minister in consultation with the ministry of finance allocated target to these States/ UTs.
The Union Cabinet approved the fulfillment of Pradhan Mantri Awaas Yojana – Gramin (PMAY-G) beyond March 2019 (PMAY-G) Phase-II as follows:
- The total target for construction of 1.95 crore houses under PMAY-G Phase-II up to the year 2022.
- Continuance of rural housing scheme Pradhan Mantri Awaas Yojana – Gramin (PMAY-G) in Phase-ll as per the existing norms of PMAY-G Phase-l, with a target of 60 lakh houses associating financial indications of Rs.76,500 crore
- The perpetuation of the scheme beyond 2019-20 up to 2021-22 in the next finance commission cycle, after due assessment and approval based on third party evaluation of scheme/pas per the extant procedure.
- Prolongation of the Program Management Unit (PMU) and National Technical Support Agency (NTSA) till 2019-20.
- Including the additional eligible households from the final Awaas+ list into the Permanent Wait List (PWL) of PMAY-G, with a ceiling of 1.95 crore, on priority for those States / UTs where PWL is used up and assigned target to these States / UTs with the approval of the Minister of Rural Development in consultation with the Ministry of Finance.
- Borrowing for additional financial requirements through the existing mechanism of EBR to the validity of the PMAY subsidy scheme.
- Reduction in administrative expenses from 4% to 2% of program funds. 2% of the program funds allocated for administrative component, shall be divided as follows- 0.30% of the program funds will be constrained at the central level and the remaining 1.70% of the program fund shall be emancipated to the States/UTs as Administrative Fund.
Benefits:
The prolongation of the program management unit (PMU) and the National Technical Support Agency (NTSA) until 2019-20 is part of the PMAY subsidy scheme. By the year 2022, the left out rural households who are homeless and/or living in disrepair houses subject to a ceiling of 1.95 crores would be provided with pucca houses. The construction of 1.95 crore houses under PMAY-G Phase-II will get completed by the year 2022. For PMAY, apply online and avail the benefits the scheme has to offer.
