Some time back, I read an article which said that by 2022, every Indian home shall have a pucca house. This was declared under the "Pradhan Mantri Awas Yojana - Housing for All" programme. If a person meets the requirements, they can apply for a house loan interest discount under the programme. Under the Credit Linked Subsidy Scheme(CLSS), the interest subsidy is offered. But the query which came to my mind after reading the article was just the same as yours, โis govt home loan subsidy applicable for buying old house?โ. Before I tell you how I found a solution to my query, let me tell you about CLSS.
Check out home loans from the leading banks of India on NoBroker, here.What is Credit Linked Subsidy Scheme (CLSS)?
The Pradhan Mantri Awas Yojana includes various components, one of which is the Credit Linked Subsidy Scheme (CLSS). It allows the central government to provide interest-free home loans to people belonging to the following categories:
LIG (Low Income Group) and EWS (Economically Weaker Section)ย
Middle Income Groups MIG-I andย
MIG-II (Middle Income Group 2)
Is old home loan is eligible for subsidy?
No, old homes or resale house/flats are not eligible for subsidy under the government home loan scheme. According to the eligibility conditions, you must not possess a pucca house in your name or the name of any other family member in order to be eligible for the benefits under PMAY. Here are the other conditions laid out for home loan subsidy:
Either the female household member should own the home, or you should jointly own it with your wife (applicable to EWS/LIG and revised EWS/LIG schemes only).
Must meet the income requirements for the different programme categories.
For EWS recipients, the carpet area of the home should be 30 square metres, 60 square metres for LIG beneficiaries, 160 square metres for MIG-I beneficiaries, and 200 square metres for MIG-II beneficiaries.
Pradhan Mantri Awas Yojana - Credit Linked Subsidy Scheme (PMAY-CLSS) Details:
| Criteria | EWS/LIG | Revised EWS/LIG | MIG - I | MIG - II |
Woman Ownership |
Yes |
Yes |
N/A |
N/A |
Annual Household Income |
EWS - Up to Rs. 3 lakh LIG โ Rs. 3 lakh to Rs. 6 lakh |
EWS - Up to Rs. 3 lakh LIG โ Rs. 3 lakh to Rs. 6 lakh |
Rs. 6 lakh โ Rs.12 lakh |
Rs. 12 lakh to Rs. 18 lakh |
Maximum loan amount for Subsidy |
Up to Rs.6 lakh |
Up to Rs.6 lakh |
Up to Rs.9 lakh |
Up to Rs.12 lakh |
Subsidy % |
6.50% |
6.50% |
4% |
3% |
Maximum Subsidy Amount |
Rs.2.20 lakh |
Rs.2.67 lakh |
Rs.2.35 lakh |
Rs.2.30 lakh |
NPV |
9% |
9% |
9% |
9% |
Maximum term of loan on which subsidy will be calculated |
15 years |
20 years |
20 years |
20 years |
Carpet area |
EWS - 30 sqm LIG โ 60 sqm |
EWS - 30 sqm LIG โ 60 sqm |
160 sqm |
200 sqm |
Validity |
2022 |
2022 |
31/3/2020 |
31/3/2020 |
Applicability |
Loans approved on or after 17/6/2015 |
Loans approved on or after 01/01/2017 |
Loans approved on or after 01/01/2017 |
Loans approved on or after 01/01/2017 |
Location |
All statutory towns as per 2011 census and the towns added subsequently |
All statutory towns as per 2011 census and the towns added subsequently |
All statutory towns as per 2011 census and the towns added subsequently |
All statutory towns as per 2011 census and the towns added subsequently |
Property should be Familyโs |
1st home |
1st home |
1st home |
1st home |
I hope youโve found your answer to the query, โis govt home loan subsidy applicable for buying old house?โ.
Read More: Can We Prepay Home Loan after PMAY Subsidy?ย How to Get PMAY Subsidy?ย How much Time it Takes to get PMAY Subsidy?Authors Of The Question
Is Govt Home Loan Subsidy Applicable for Buying Old House?
Akshara
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December 21, 2022
2022-12-21T18:03:15+00:00 2023-09-21T15:36:19+00:00Comment
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