How is the PMAY benefit transferred to beneficiaries?

The benefits under the Pradhan Mantri Awas Yojana (PMAY) are typically transferred to the beneficiaries through a direct benefit transfer (DBT) mechanism. Here's how the PMAY benefits are transferred to the beneficiaries:

1. Subsidy for CreditLinked Subsidy Scheme (CLSS):
Once the beneficiary's application is approved, and the loan from a lending institution is sanctioned, the subsidy amount is disbursed to the lending institution directly.
The lending institution then adjusts the subsidy amount against the outstanding loan amount, thereby reducing the loan burden for the beneficiary.
The subsidy amount is directly credited to the beneficiary's loan account, reducing the effective interest rate payable on the home loan.

2. Financial Assistance for AHP and BLC:
The financial assistance provided under the Affordable Housing in Partnership (AHP) and BeneficiaryLed Construction (BLC) components may vary based on the specific scheme implemented by the respective state or union territory.
The assistance is typically transferred directly to the beneficiary's bank account through the DBT mechanism.
The beneficiary can then utilize the transferred amount for the construction or purchase of the house as per the guidelines of the scheme.

The direct benefit transfer (DBT) mechanism ensures that the financial assistance or subsidy reaches the intended beneficiaries directly, reducing the chances of any intermediaries or delays in the process. The disbursal of benefits and the transfer mechanism may vary depending on the specific scheme and the guidelines implemented by the respective state or union territory. It is advisable to refer to the official PMAY website or consult with the nodal agency in your area for precise information on the benefit transfer process.