Everything to Know About Credit Linked Subsidy Scheme in India

As an economical housing project, Pradhan Mantri Awas Yojana offers you a substantial interest subsidiary. As per the Ministry of Housing and Urban Affairs of India, there were more than 83,000 beneficiaries who have availed the subsidy of Rs.1,600+ crore under the Credit Link Subsidy Scheme in March 2018. With a noticeable rise, the subsidy amount reached Rs. 12,000+ crore with more than 5.67 lakh beneficiaries within 1 year.

Nonetheless, to avail CLSS scheme you must fall under the given threshold determined by the government. So, you just need to know everything about this project before applying. Here are the details-

What is CLSS?

Credit Link Subsidy Scheme or CLSS is a component PMAY. This government-backed plan provides a home loan subsidy. Beneficiaries under different urban and rural income groups can avail a PMAY home loan to possess their own pucca house. 

PMAY CLSS eases the way to become a homeowner for different income groups like Economically Weaker Sections, Lower Income Groups, and Middle Income Groups. 

CLSS for Economically Weaker Section:

Indian citizens whose yearly income is up to Rs.3 lakh and who don’t own a pucca house can avail a home loan under the Credit Linked Subsidy Scheme of PMAY at 6.50% subsidised interest rate. They can avail the repayment tenor up to 20 years. An applicant can receive the benefit of up to the Rs.2.67 lakh interest subsidy.

CLSS for Lower Income Group:

Individuals with yearly earning between Rs.3 and Rs.6 lakh can avail home loans under CLSS to build their own houses. As a government initiation, LIGs are allowed to avail the facility of a high-interest subsidy of 6.50% on a maximum loan amount of Rs.6 lakh with 20 years as a tenor. Similar to the previous section, LIGs are also allowed to avail interest subsidies of up to Rs.2.67 lakh.

CLSS for Middle Income Group-1:

Under the CLSS subsidy plan, applicants with an income of Rs.6 to Rs. 12 lakh per year are allowed to avail a loan up to Rs.9 lakh with a 4% interest subsidy. MIG-1 families can avail houses with 160 sq. m dwelling carpet area. Nonetheless, the maximum interest subsidy of Rs.2.35 lakh can be availed by this segment. 

CLSS for Middle Income Group-2:

Individuals having an annual income of Rs.12-18 lakh can also avail a 3% interest subsidy on a loan amount up to Rs.12 lakh to possess a house with 200 sq. m carpet area under PMAY subsidy. Also, a maximum subsidiary interest amount of Rs.2.30 lakh is offered to this group. 

Eligibility and features of CLSS:

The eligibility criteria for PMAY is mentioned below –

• Every earning Indian citizen can be the applicant of the PM Awas Yojana if he/she or any family member of the applicant doesn’t possess a pucca house. Here, the family includes husband, wife and unmarried son and daughter.
• The beneficiary family must not have availed any financial assistance from central or state to build own house.
• Married couples are treated as an independent household. Therefore, they are allowed to avail of the facility of PMAY.
• At least one of the co-owner of the property must be an adult female member of the EWS and LIG families.
• Senior citizens and individuals with disabilities will receive preference to avail ground floor plots under CLSS.

To sum it up, under the Credit Linked Subsidy Scheme, you can fulfil your dream of owning a pucca house. With a high subsidy on the interest, if you meet the eligibility criteria, you can also easily repay your loan.

Also Read: Pradhan Mantri Awas Yojana – A Brief Overview!