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Published on 3/4/2018 1:47:19 PM
How to apply for an affordable house?
How can you apply for the affordable housing scheme? We give you the procedure and a few other handy tips.

The government's affordable housing scheme brought a smile on many fence-sitting homebuyers but there is confusion on how to avail the benefits and how to apply for this scheme.

Eligibility and subsidy under CLSS of PMAY

There are four categories of people who can avail benefits under CLSS (Credit-linked Subsidy Scheme) of PMAY: People belonging to EWS (annual household income up to Rs 3 lakh), LIG (annual household income up to Rs 6 lakh), MIG I (annual household income up to Rs 12), and MIG II (annual household income up to Rs 18 lakh).

Beneficiaries of the Economically Weaker Section (EWS) and Low-income Group (LIG) seeking housing loans from banks, Housing Finance Companies (HFCs), and other such institutions would be eligible for an interest subsidy at the rate of 6.5% or during tenure of loan whichever is lower.

Interest subsidy will be credited to the loan account of the beneficiaries through the lending institutions; this reduces the effective loan and EMIs.

"The finance minister announced a dedicated Affordable Housing Fund (AHF) in the National Housing Bank (NHB), funded from priority sector lending short fall and fully service bonds, authorized by the Government of India. This will help in achieving the vision of ‘Housing for all by 2022," Niranjan Hiranandani, president of Naredco, says.

Benefits under CLSS

Upfront subsidy of 6.5% for EWS and LIG for loans up to Rs 6 lakh Interest subsidy of 4% on home loans up to Rs 9 lakh for MIG I Interest subsidy of 3% on home loans up to Rs 12 lakh for MIG II.

Which component to select?

A. If the citizen is from a slum area: ISSR (In-situ slum rehabilitation component) B. If the citizen is from a non-slum area: Has land of his own and interested in construction: Beneficiary Led Construction BLC (new construction) in case of existing structure is kutcha or semi-pucca, BLC (enhancement) in case existing structure is pucca and enhancement of minimum 9 sq m and maximum area after enhancement should not be more than 30 sq m Can afford to construct or purchase or enhance house using housing loan: Select CLSS. The citizen will get subsidy on home loan Don’t have any land to construct or cannot afford home loan: Select affordable housing in partnership AHP component

Who is eligible?

A family comprising husband, wife, and unmarried children.

An adult earning member (irrespective of marital status) can be treated as a separate household provided he or she does not own a pucca house in his or her name A married couple, either of the spouses, or both together in joint ownership, will be eligible for just one house A beneficiary family should not have availed of central government’s assistance under any housing scheme

How to apply?

If you are planning to apply under this scheme then you can register at the Common Service Centres (CSCs) facilitated by the state or UT governments by paying a registration fee of Rs 25 plus GST.

You must fill up the required details like name, area, Aadhaar card number, etc. After this is done you will receive an application number to track the status.

You can also visit the official website of the Pradhan Mantri Awas Yojana (PMAY): and apply online. Go to the Citizen Assessment option and select either Slum Dwellers or Benefit under the other three components. You must enter your Aadhaar number and all the required details. An application number will be generated once you submit your application. This number can be used to track the status of your application.

Aadhaar is mandatory

Aadhaar is mandatory for citizens to apply online. You can get an Aadhaar number from the nearest CSC, where the CSC locator is available.