Credit Linked Subsidy Scheme (CLSS) Under Pradhan Mantri Awas Yojana (PMAY): In June 2015, Ministry of Housing and Urban Poverty Alleviation (MoHUPA) has proposed an interest subsidy scheme called Credit Linked Subsidy Scheme (CLSS). This scheme is under the Pradhan Mantri Awas Yojana (PMAY). This scheme is for purchase/construction/extension/improvement of the house to cater Economical Weaker Section (EWS)/Lower Income Group (LIG)/Middle Income Group (MIG), given the projected growth of urbanization & the consequent housing demands in India.
In order to empower people to get their dream home, the Honorable Prime Minister has announced a comprehensive and progressive mission, ‘Pradhan Mantri Awas Yojana – Housing for All’. One of the major verticals of the Pradhan Mantri Awas Yojana (PMAY) is the Credit-Linked Subsidy Scheme (CLSS) for the Income Tax Group / Financially Weaker Sector (EWS / LIG) and Central Income Group (MIG-I and II). Under this scheme, the Central Government provides financial assistance through the credit institutions for eligible beneficiaries in all the statutory towns as per the census of 2011 and the planning area near them (updated by the government from time to time).
Objectives of the Pradhan Mantri Awas Yojana (PMAY):
The Pradhan Mantri Awas Yojana was initiated in 2015 with a view to serving a number of purposes:
- To ensure that poor sections of urban India can live under their own roof.
- To provide financial assistance to those people who cannot afford the full cost of building residential property.
- To offer homes to economically weaker sections of society.
- To bring both public and private sectors together for improving the fate of the urban poor population of the country.
- Rehabilitation of existing slum dwellers with private sector participation using land as the resource.
- Affordable housing with the support of private and government financing.
Features of Pradhan Mantri Awas Yojana (PMAY):
- The Indian Government will provide interest subsidy of 6.5% on the benefit of home loans for the period of 15 years from the beginning of their loan period by the beneficiaries.
- Due to its priorities to female applicants in the family, this scheme can be called as a pro-woman scheme.
- During the allocation of houses under the PMAY scheme, prioritization of allotment of land will be given to senior citizens and given to different people with different capacities.
- All the houses built under PMAY scheme will be done through technology and will be environmentally friendly compliance.
- Eco-friendly and environmental methods will be used for the build of houses during the construction process. This will be a bold step towards making an environmentally safe home for individuals.
- While allocating the houses on the ground floors, the physically disabled and the senior citizens will be given a higher priority.
- The beneficiary family should not have a permanent house in any part of India in the name of any member of their family.
- In the case of the married couple, both husband or wife or both of them together will be eligible for a subsidy in joint ownership.
- The beneficiary family has not received Central assistance under any housing scheme from the Government of India and there should not be any benefit under any scheme in PMAY.
- Your household income is between 6 to 18 lakhs, including the combined income of both husband and wife.
- If your spouse is also claiming interest subsidy for the home, you cannot take advantage of this scheme.
Assessing your eligibility to take advantage of the advantages of CLSS is the sole discretion of the Government of India. The criteria mentioned under the scheme are to evaluate the right to material on this subject.
|CLSS Scheme Type||Eligibility Hous-ehold Income (Rs.)||Carpet Area-Max (sqm)||Interest Subsidy
|Subsidy calculated on a max loan of||Loan Purpose||Validity of scheme||Max
|EWS and LIG||Up to Rs. 6,00,000||60 sqm||6.50 %||Rs. 6,00,000||Purchase
|MIG 1**||Rs. 6,00,001 to Rs. 12,00,000||90 sqm||4.00 %||Rs. 9,00,000||Purchase/Self Construction||31/12/2017||2.35 Lacs||Not Mandatory|
|MIG 2**||Rs. 12,00,001 to Rs. 18,00,000||110 sqm||3.00 %||Rs. 12,00,000||Purchase/Self Construction||31/12/2017||2.30 Lacs||Not Mandatory|
* Women’s ownership is not mandatory for construction/expansion
** For MIG-1 and MIG-2 loans 1-1-2017 should be approved on or after
- For MIG category Aadhar number of the beneficiary, the family is mandatory.
- The interest subsidy will be available for the maximum loan period of 20 years or loan term, whichever is less.
- Interest subsidy will be deposited in advance through HDFC in the loan account of the beneficiaries, resulting in less effective housing loan and Equated Monthly Installment (EMI).
- The Net Present Value (NPV) of interest subsidy will be calculated at a discount rate of 9%.
- Additional loan beyond the specified limit, if any will be at the non-subsidized rate.
- There is no cap on the amount of loan or the cost of the property.