Pradhan Mantri Awas Yojna (PMAY) is a Credit Linked Subsidy Scheme (CLSS). It's a government scheme that aims to make purchasing home easier for Economically Weaker Section (EWS), Low Income Group (LIG), Middle-Income Group 1 (MIG-I), and Middle-Income Group 2 (MIG-II).
PMAY provides subsidizedhome loan interest rates based on the applicant's household income. This benefit is used for the purchase new/resale house and the construction/extension/improvement of existing kucha/semi-pucca houses.
To avail subsidy under the PMAY, first, you need to obtain the Self Declaration Form from the respective Bank from which you want to obtain the subsidy. Later on, submit the duly filled Form at the Bank branch. Do carry your Original ID and Address Proof. To get the subsidy, Aadhaar Card is a must.
One another process to claim PMAY interest subsidy benefit is as follows:
Once your home loan gets disbursed, the lender will send the required details to National Housing Bank (NHB) for validation.
After reviewing everything, the NHB will approve the subsidy to the eligible borrowers.
The lender will receive the subsidy amount for all eligible borrowers.
Upon receiving the subsidy amount from NHB, the lender will begin crediting the same to the borrower's home loan account, and it will be adjusted in the loan accordingly.