PMAY-CLSS subsidy extended till 2024; NBFCs rejoice

By Investoxpert | 24 Jan 2024 | Real Estate

PMAY-CLSS subsidy extended till 2024; NBFCs rejoice

The PMAY-Gramin plan was earlier authorized by the Union Cabinet to be extended till March 2024. Consequently, the PMAY-Credit Linked Subsidy Scheme (CLSS), which is now in effect till December 2024, was also extended in a manner similar to what the Non-Banking Financial Companies (NBFCs) requested. Continue reading to learn more about the plan.

With success, the Non-Banking Financial Companies (NBFCs) were able to extend the deadline for new disbursements under the Pradhan Mantri Awas Yojana (PMAY) – Credit Linked Subsidy Scheme (CLSS) for the impoverished and disadvantaged till December 31, 2024. This statement was made shortly after the PMAY-Gramin program's March 2024 extension.

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What Is The PMAY, Or Pradhan Mantri Awas Yojana?

The Central government's Pradhan Mantri Awas Yojana (PMAY) program offers low-income and economically disadvantaged people (LIG) and members of the Economically Weaker Section (EWS) affordable homes at discounted prices.

What Is The PMAY-CLSS Subsidy Extension?

The housing ministry and its top officials were encouraged by the NBFCs to provide clarification about the extension of the CLSS program for the Low-Income Group (LIG) and Economically Weaker Section (EWS) by an additional two years. In addition to providing homes for the impoverished, the two-year extension was intended to create jobs for young people living in rural regions.

The deadline for the PMAY subsidy was originally set for March 31, 2022, however it has now been extended to December 2024. During the prolongation period, the Center additionally announced additional funding totalling more than Rs 85,400 crore.

A senior official from a home finance firm stated prior to the extension that although Rs 55,000 crore had been set out for the budget, they had stopped offering PMAY benefits to LIG clients while the decision was still being made.

Let’s Know More About The PMAY-Gramin Extension

The extension of the PMAY-Gramin program from March 2021 to March 2024 was previously agreed by the Cabinet in order to fulfill the goal of supplying 29.5 million rural dwellings. Only the 15.575 million families that remain below the overall threshold are eligible for subsidies under the prolongation.

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PMAY Subsidy Latest News

The Finance Minister allotted about Rs 79,000 crore during the Union Budget for the Financial Year (FY) 2023–2024 in an effort to finish the approved homes and ongoing PMAY projects. The PMAY designated amount is increased by about 66% as a result of this allocation. About Rs 25,000 crore is set aside for PMAY-Urban, while approximately Rs 54,000 crore is intended for PMAY-Gramin.

The disparity in the distribution of funds can be ascribed to the excess spending on the rural plan in FY 2022–2023. According to estimates, in the previous fiscal year, the PMAY-Gramin spent more than Rs 48,000 crore when only Rs 20,000 crore was allotted. The 12% increase in funding from the previous year is probably going to help with overspending in the current fiscal year.

It is envisaged that "Housing for All," with the Center's active involvement in granting required extensions and providing cash, would effectively assist many people realize their ambition of owning a home.

How To Apply For PMAY?

Following are the steps to apply for PMAY Online:

• Visit the official PMAY site at https://pmaymis.gov.in/ to begin the application process.

• After accessing the website, scroll down to the 'Citizen Assessment' section.

• Select "Benefit under 3 components" from the drop-down menu to proceed with your application.

• As required by the application process, provide your Aadhaar details.

• Provide your contact details, such as your name, phone number, bank account number, and details about your income.

•Save the application and enter the captcha code before submitting it.

•For your records, it is recommended that you print off the completed application form.

You may apply for a house under the PMAY plan and become one of the millions of Indian families who have benefited from this inexpensive housing program by following these easy steps.

What Is The Credit Linked Subsidy Scheme (CLSS) Under PMAY?

One of the cornerstones of the PMAY is the Credit Linked Subsidy Scheme (CLSS), which provides interest subsidies for house loans with the goal of making homes more affordable for target groups, such as the Economically Weaker Section (EWS), the Low Income Group (LIG), and the Middle Income Group (MIG).

Conclusion

The Ministry of homes and Urban Affairs launched the Pradhan Mantri Awas Yojana in an effort to give all societal segments access to affordable homes. The program seeks to meet the housing requirements of the impoverished, particularly low-income and economically disadvantaged populations.

Applicants can use the offline method or the official PMAY portal to apply for the program. It is simpler for qualified candidates to build or buy a home and realize their goal of home ownership by following the easy procedures to get a subsidy on their home loan interest rates.

PMAY-CLSS subsidy extended till 2024; NBFCs rejoice