Note* : This scheme has been discontinued from 1st of April, 2022.

The Pradhan Mantri Awas Yojana (PMAY) was launched by the honourable Prime Minister of India with the mission to fuel the concept of ‘Housing for All’ by 2022. The PMAY has two components, i.e. PMAY(U) for the urban poor and PMAY-G for the rural poor.

The Pradhan Mantri Awas Yojana (Urban) or PMAY (U) was introduced on 25th June 2015. This is a flagship mission of the government of India implemented by the Ministry of Housing and Urban Affairs (MoHUA). While the scheme was discontinued from April 1st 2022, IIFL Home Finance Ltd. was always at the forefront of facilitation the Credit Linked Subsidy Scheme (CLSS) to the eligible beneficiaries of Economically Weaker Section / Lower Income Group (EWS/LIG) for purchase, construction or enhancement of house. IIFL Home Loan aligns with the Government's vision of ‘Housing For All’ by facilitating financial inclusion for the undeserved communities through its extensive product portfolio. Designed to support the informal income segments, the company provides Home Loans and Secured Business Loans (Loan Against Property) to the first-time homeowners and small business owners, respectively.

Credit Linked Subsidy (PMAY-CLSS) to 55,700+ beneficiaries

1,300+ Subsidy (CLSS) facilitated

151,300+ First time home buyers

54,000+ Loans to informal segment

97,700+ Loans given to women owners / co-owners

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Pradhan Mantri Awas Yojana FAQs

Pradhan Mantri Awas Yojana (Urban) or PMAY(U) was launched on 25th June 2015 with an objective to ensure housing for all in urban areas and ensure pucca houses to all eligible beneficiaries by 2022. The PMAY(U) comprises four components to include more number of people considering their income, finance and availability of land.:
  • “In-situ” Slum Redevelopment (ISSR)
  • Credit Linked Subsidy Scheme (CLSS)
  • Affordable Housing in Partnership (AHP)
  • Beneficiary-led individual house construction/enhancements (BLC)
The Credit Linked Subsidy Scheme offers an interest subsidy of up to Rs.2.67 lakh per house to the beneficiaries belonging to the Economically Weaker Section (EWS) and Low Income Group (LIG). As part of the scheme, beneficiaries availing housing loans for construction/purchase/enhancement of house from housing finance companies, banks or other institutions are eligible to get an interest subsidy at the rate of 6.5% for a tenure of 20* years or during the tenure of loan, whichever is lower.
Below are the eligibility terms for CLSS beneficiaries:
  • The annual household income of the beneficiary family shall not be more than Rs.3 lakhs and Rs.6 lakhs under EWS/LIG categories, respectively.
  • The beneficiary family should not own a pucca house in his/her or in the name of any member of his/her family in any part of India.
  • Female ownership/co-ownership in the house is a must.
  • The beneficiary family should not have availed of assistance under any housing scheme from the Government of India or any benefit under any scheme in PMAY.
  • The house is to be purchased/constructed in a statutory town as notified by the Ministry of Housing & Urban Affairs.
Below is the process of crediting the interest subsidy:
  • Step 1: The subsidy is released by the Central Nodal Agency (CNA) based on the disbursement made by Primary Lending Institution (PLI) to the borrower
  • Step 2: The subsidy is then credited by CNA to the IIFL Home Loans bank account
  • Step 3: IIFL Home Loans credits the subsidy to the borrower’s home loan account upfront by deducting it from the principal loan amount. The borrower pays the EMI on the remainder of the principal loan amount.
For instances where the construction of the house is stalled or not completed within a period of 36 months from the date of the first disbursement, the PLI recovers the subsidy from the beneficiary, and it is refunded to the Central Nodal Agency.
There is no limit on the loan amount as it ultimately depends on the credit due diligence of the PLI. However, the credit linked subsidy is calculated for loan amount of upto Rs.6 lakhs.
The Credit Linked Subsidy is calculated for a maximum tenure of 20 years or the actual tenure of the loan, whichever is less.
The Credit Linked Subsidy Scheme is not applicable for houses in rural areas.

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