The government has launched Pradhan mantri awas Yojana in 2015 which focuses on the tagline ‘affordable housing for all’. Under this scheme the government focuses on providing affordable houses to all by 2022 by reducing your home loan EMIs. Credit Linked Subsidy (CLSS) Scheme is a part of Pradhan mantri awas Yojana which focuses on providing the loan subsidy for economically weaker sections and middle income groups. So in this article we are going to discuss all the important points related to to Credit Linked Subsidy Scheme (CLSS) like eligibility criteria, procedure to calculate interest subsidy, procedure to avail Credit Linked Subsidy Scheme etc
About Credit Linked Subsidy (CLSS) Scheme
Credit Linked Subsidy (CLSS) Scheme is a part of Pradhan Mantri Awas Yojana that offers interest concession to economic weaker sections and middle income group section. It was launched by Ministry of Housing and Urban Poverty Alleviation. The main objective to launch this scheme is to make it affordable to purchase house for peoples who are unable to do so due to financial crises. Under this scheme an intrest Subsidy is given to beneficiaries which will ultimately reduce the principal loan amount as a result of which Equated Monthly Installment popularly known as EMI will get reduced. There is a diffrent rate of subsidy for different sections of society.
Key Highlights of Credit Linked Subsidy (CLSS) Scheme
|Article about||Credit Linked Subsidy Scheme|
|Launched by||Government of India|
|Beneficiaries||Citizens of India|
|Objective||To Provide Housing for All|
Objectives Of Credit Linked Subsidy (CLSS) Scheme
- The main objective of Credit Linked Subsidy (CLSS) scheme launched by Government of India is to provide is to provide subsidy in the loan amount taken for the the house so that government’s objective of ‘housing for all’ can be fulfilled
Features 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 the 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.
- CLSS scheme comes in effect from 1 January 2017.
- There should not be any pucca house on the beneficiary name
- Economically Weaker Sections and Low Income Groups will get interest subsidy of 6.5% for a period of 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 upto 30 square metres and 60 square metres, 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 kind of set of beneficiaries.
1. MIG-I covers people with an annual income of Rs.6 lakh to Rs.12 lakh p.a. are first set.
2. MIG-II covers people who fall in the income group of Rs.12 lakh to Rs.18 lakh p.a. are second set.
- An Interest rate subsidy:
– 4% for MIG I
– 3% for MIG-II.
- The maximum tenure of loan can go up to 20 years for both sets.
- Recently, the Cabinet increased the carpet area from 90 square metres to 120 square metres for MIG-I and for MIG-II from 110 square metres to 150 square metres.
Credit Linked Subsidy (CLSS) Scheme for Middle Income Group
- The annual income should be between 6 lacs to 12 lacs for MIG 1 and rupees 12 lakh to 18 lakh for MIG 2
- Maximum loan tenure is 20 years for both MIG 1 and MIG 2
- Loan amount eligible for interest subsidy is up to 9 lakh for MIG 1 and 12 lakh for MIG 2
- Revised carpet area will be 120 square metre for MIG 1 and 150 square metres for MIG 2
- Interest subsidy is 4% for MIG 1 and 3% for MIG 2
Credit Linked Subsidy (CLSS) Scheme for Economically Weaker Section and Lower Income Group
- The annual income for economic weaker section is up to 3 lakh and lower income group is from 3 lakh to 6 lakh
- The maximum loan tenure is 20 years for both economically weaker section and lower income group
- Revised carpet area is 30 square metre for economically weaker section and 60 square metre for lower income group
- Loan subsidy is 6.5 % for both economically weaker section and lower income group
Eligibility Criteria For Credit Linked Subsidy CLSS) Scheme
To be eligible for Credit Linked Subsidy Scheme Applocants must fall into any of these income categories:
- Economically Weaker Section or Lower Income Group – Annual income between Rs. 3 Lakh and Rs. 6 Lakh.
- Middle Income Group I – Annual income within Rs. 6 Lakh – Rs. 12 Lakh.
- Middle Income Group II – Annual income within Rs. 12 Lakh – Rs. 18 Lakh.
Other Eligibility Criteria for EWS/LIG and MIG Categories
- There should be one female member in property ownership.
- the applicant must not have any pucca house in India
- Property’s location must be within the 2011 census statutory towns.
- Previously any government assistance under housing scheme must not be taken by the applicant
Procedure To Avail Credit Linked Subsidy (CLSS) Scheme
To avail credit linked subsidy scheme following procedure is to be followed:-
- Check if you are eligible to apply for the Home Loan Credit Linked Subsidy Scheme.
- Contact the financial institutions or banks that are participating in the PMAY scheme, If you find yourself meet all the eligiblity criteria.
- Fill the Application form of PMAY Home Loan Credit Linked Subsidy then submit it to the lender with the necessary documents.
- The housing loan amount will be disbursed to your bank account after the verification.
- Lender will get in touch with the nodal agencies and initiate the process of claiming interest subsidy after the loan is disbursed.
- The interest subsidy will be credited to your account and loan amount will be adjusted by which your Equated Monthly Installment get lower.
- Housing and Development Corporation- 1800116163
- National Housing Bank- 1800113377, 1800113388