Credit Linked Subsidy (CLSS) Scheme

Credit Linked Subsidy (CLSS) Scheme: Application Form, Eligibility, Status

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Credit Linked Subsidy (CLSS) Scheme:- As you all may be aware the government of India launched Pradhan Mantri Awas Yojana in the year 2015. This scheme focuses on providing affordable housing to all the citizens of the country. Under the Pradhan Mantri Awas Yojana, the government has also launched the Credit Linked Subsidy (CLSS) Scheme. This scheme focuses on providing the loan subsidy to the economically weaker section and middle-income groups. Through this scheme interest and concession are provided to the beneficiaries so that all the citizens will be able to afford their own house. The primary objective of implementing this scheme is to provide affordable housing to all citizens. The government provides interest subsidies to the citizens on the house loan under the Credit Linked Subsidy (CLSS) Scheme. This interest subsidy will reduce the principal amount and EMI

Objective Of Credit Linked Subsidy (CLSS) Scheme

  • The primary objective of implementing the Credit Linked Subsidy (CLSS) Scheme is to provide interest subsidy on the house loan
  • Through this scheme, the interest subsidy is provided to economically weaker section and middle-income group
  • So that all the citizens can afford their own houses
  • The government is going to provide an interest subsidy of up to Rs 6.5% through this scheme
  • With the implementation of this scheme, all the citizens will be able to afford their own house
  • Now citizens are not required to depend on anyone as the government is going to provide them with financial assistance

Also Read: Affordable Rental Housing Scheme

Key Highlights Of the Credit Linked Subsidy (CLSS) Scheme

Name of the schemeCredit Linked Subsidy (CLSS) Scheme
Launched byGovernment of India
BeneficiaryCitizens of India
ObjectiveTo provide financial assistance in purchasing houses
Year2024

Benefits And Features Of Credit Linked Subsidy (CLSS) Scheme

  • The government of India launched Pradhan Mantri Awas Yojana in the year 2015.
  • This scheme focuses on providing affordable housing to all the citizens of the country.
  • Under the Pradhan Mantri Awas Yojana, the government has also launched the Credit Linked Subsidy (CLSS) Scheme.
  • This scheme focuses on providing the loan subsidy to the economically weaker section and middle-income groups.
  • Through this scheme interest and concession is provided to the beneficiaries so that all the citizens will be able to afford their own house.
  • The primary objective of implementing this scheme is to provide affordable housing to all citizens.
  • The government provides interest subsidies to the citizens on the house loan under Credit Linked Subsidy (CLSS) Scheme.
  • This interest subsidy will reduce the principal amount and EMI.

Interest Subsidy Under Credit Linked Subsidy (CLSS) Scheme

ParticularsEWSLIG
Annual IncomeUp to Rs.3 lakhRs.3 lakh to Rs.6 lakh
Maximum Loan Tenure20 years20 years
Revised Carpet Area30 square metres60 square metres
Interest Subsidy6.5%6.5%
ParticularsMIG-IMIG-II
Annual IncomeRs.6 lakh to Rs.12 lakhRs.12 lakh to Rs.18 lakh
Maximum Loan Tenure20 years20 years
Housing Loan Amount Eligible For Interest SubsidyUp to Rs.9 lakhUp to Rs.12 lakh
Revised Carpet Area120 square meters150 square meters
Interest Subsidy4%3%

Eligibility Criteria Of Credit Linked Subsidy (CLSS) Scheme

  • Applicant must be a permanent resident of India
  • Property ownership must contain one female membership
  • The applicant should not purchase any pakka house
  • The location of the property must be within the 2011 census statutory towns
  • The applicant should not have taken any kind of government assistance under the housing scheme previously

Importance Of Credit Linked Subsidy (CLSS) Scheme

  • The Credit Linked Subsidy Scheme (CLSS) is a scheme under the Pradhan Mantri Awas Yojana
  • It focused on helping Middle-Income Groups, Economically Weaker Sections, and Lower Income Groups in India
  • It brings down the housing loan EMIs by over Rs.2,000 per month by offering an interest subsidy.
  • The CLSS scheme comes into effect on 1 January 2017.
  • There should not be any pucca house on the beneficiary’s name
  • Economically Weaker Sections and Low-Income Groups will get an interest subsidy of 6.5% for 20 years
  • To construct a new house or to add a room, kitchen, or balcony to their existing house the funds borrowed under CLSS can be used.
  • The carpet area for Economically Weaker Sections and Lower Income Groups can go up to 30 square meters and 60 square meters, respectively.
  • Women, Scheduled Tribes, Scheduled Castes, backward classes, minorities, people with disabilities, and transgenders will be preferred first.
  • For the Middle Income Group, there are two kinds of sets of beneficiaries.
Income Criteria Of Credit Linked Subsidy (CLSS) Scheme
  • Economically weaker section or lower income group- Annual income between 3 lakh to 6 lakh
  • Middle-income group 1- Annual income within Rs 6 lakh to 12 lakh
  • Middle-income group 2- Annual income within 12 lakh to 18 lakh
Required Documents
  • Aadhar Card
  • Residence certificate
  • Passport size photograph
  • Mobile number
  • Email ID
  • Income certificate etc

Procedure To Apply Offline Under Credit Linked Subsidy (CLSS) Scheme

  • First of all, go to the nearest financial institution or Bank participating in the Pradhan Mantri Awas Yojana scheme
  • Then you have to take an application form for credit linked subsidy scheme
  • You have to fill in all the required details in this application form
  • Now you have to upload all the required documents
  • After that, you have to submit this form to the same financial institution
  • The institution will verify the details entered by you
  • After that, the lander will get in touch with the nodal agency and initiate the process of flaming interest subsidy
  • The inter-subsidy will be credited into the bank account of the beneficiary

Conclusion

The credit link subsidy scheme has been launched to support economically weaker sections and low-income groups to purchase their own house. Under this scheme, the interest subsidy is provided on home loans which is up to Rs 6.5% for 20 years or the loan tenure whichever is less. All those beneficiaries who want to benefit from this scheme are required to apply online. The preference will be given to women, scheduled tribes, scheduled castes, backward classes, minorities, disabilities, and transgenders.

Contact Details
  • Housing and Development Corporation- 1800116163
  • National Housing Bank- 1800113377, 1800113388
FAQs
Is there any loan limit to get the benefit of this scheme?

No there is no loan limit to get the benefit of this scheme although there is a limit on subsidy which is Rs 6 lakh

Can we benefit from this scheme will be availed through all the banks of the country?

Yes all the banks listed under the Reserve Bank of India provide the benefit of this scheme

Can a non-resident Indian avail of the benefit of this scheme?

Yes a non-resident Indian can also avail the benefit of this scheme

Can a beneficiary choose a loan term of more than 20 years?

Yes a beneficiary can choose a long-term which is more than 20 years

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