PMAY CLSS - Check How the Credit Linked Subsidy Scheme (CLSS) works

Two central nodal agencies in India, Housing and Urban Development Corp and National Housing Bank, will implement the Credit Linked Subsidy Scheme. Apart from pumping the credit flow required to meet the housing needs, this scheme will also focus on the demand aspects of affordable housing finance segment.

Economically Weaker Sections and Low-Income Groups can avail CLSS benefits when they seek housing loans from financial institutions and banks participating in the Pradhan Mantri Awas Yojana Scheme. Borrowers can Credit Linked Subsidy for new construction or for adding a room to their existing house.

The Pradhan Mantri Awas Yojana scheme requires that houses constructed or acquired with its benefits be registered in the name of the female head of the household. The beneficiaries have an option to register it jointly in the name of the male and female head of the family. In special cases where is not no female head in the family, the house can be in the name of a male head of the family.

Additionally, the beneficiary must ensure that this is their first owned house. The beneficiary family should not own a pucca house in his/her or in the name of any member of his/her family in any part of India.

CLSS for Economically Weaker Section (EWS) and Low-Income Groups (LIG)

Pradhan Mantri Awas Yojana’s Credit Linked Subsidy Scheme helps urban poor by providing 6.5% interest subsidy on housing loans.

The lending institution will credit the interest rate subsidy to the beneficiary’s loan account at the start of the loan, reducing their Equated Monthly Installments (EMIs) from the very beginning.

Economically Weaker Sections can use the borrowed funds to either construct a new house or add a room, kitchen, or balcony to their existing house. The beneficiaries under Economically Weaker Sections can have annual income up to Rs.3 lakh. Also, beneficiaries with an annual income of Rs.3 lakh to Rs.6 lakh fall under the Low-Income Group category.

The government prioritizes women, STs, SCs, backward classes, minorities, people with disabilities, and transgenders within EWS and LIG categories.

CLSS for Middle Income Group (MIG)

Under the Middle-Income Group, there are two sets of beneficiaries. The first set MIG-I covers people with an annual income of Rs.6 lakh to Rs.12 lakh p.a. The second set called MIG-II covers people who fall in the income group of Rs.12 lakh to Rs.18 lakh p.a. An Interest rate subsidy of 4% and 3% will be given to those who fall under MIG-I and MIG-II respectively. For both sets of beneficiaries, the maximum tenure of loan can go up to 20 years. The maximum loan amount can go up to Rs.9 lakh for MIG-I and Rs.12 lakh for MIG-II. Also, the discount rate for Net Present Value(NPV) is 9% for both MIG-I and MIG-II.

When CLSS was introduced, the carpet area was set at 90 square metres for MIG-I and 110 square metres for MIG-II. Recently, the Cabinet increased the carpet area from 90 square metres (968.752 sq ft) to 120 square metres (1291.668 sq ft.) for MIG-I. The carpet area for MIG-II was also increased to 150 square metres (1614.585 sq ft) which were 110 square metres (1184.03 sq ft) previously.

PMAY CLSS Helpline Numbers

You can call the CLSS toll-free helpline numbers for any enquiries or concerns regarding CLSS.

The CLSS toll-free number for Housing and Development Corporation (HUDCO) is 1800116163.

The CLSS toll-free numbers for National Housing Bank (NBC) are 1800113377 and 1800113388.

How to Avail PMAY CLSS Subsidy

1. You will have to first check if you are eligible to apply for the Home Loan Credit Linked Subsidy Scheme.
2. If you fall meet all the eligibility criteria, you will have to contact the financial institutions or banks that are participating the PMAY scheme.
3. Fill the PMAY Home Loan Credit Linked Subsidy Application form and submit it with the necessary documents to the lender.
4. After verification, the lender will disburse the housing loan amount to your bank account.
5. After disbursing the loan, the lender will contact the nodal agencies and initiate the process to claim the interest subsidy.
6. After verification, the lender will credit the interest subsidy to your loan account, adjusting the loan amount and reducing your Equated Monthly Installment (EMI).

Key Features of PMAY Credit Linked Subsidy Scheme

1. The Credit Linked Subsidy Scheme (CLSS) is a benefit under the Pradhan Mantri Awas Yojana which focuses on helping the Middle Income Groups, Economically Weaker Sections, and Lower-Income Groups in India by bringing down their housing loan EMIs by over Rs.2,000 per month by offering an interest subsidy.
2. CLSS scheme is effective from 1 January 2017. Those who were sanctioned home loans and whose applications are under consideration since the beginning of the year will be eligible for interest subsidy.
3. Over 70 lending institutions which include 45 Housing Finance Companies and 15 scheduled banks have come forward and signed the Memoranda of Understanding with the nodal agencies showing their support in implementing the PMAY Urban Scheme.
4. To be eligible to avail a housing loan under CLSS, the beneficiary family should not own a pucca house in his/her or in the name of any member of his/her family in any part of India.
5. Economically Weaker Sections and Low-Income Groups who are seeking for housing loans from financial institutions and banks will be eligible for an interest subsidy of 6.5% for a period of 20 years or for the tenure of the loans, whichever is lower.
6. This interest rate subsidy will be credited during the initial stage of the loan to the beneficiary's loan account through the lending institute which will lower their Equated Monthly Installments (EMIs).
7. The funds borrowed under CLSS can be used to construct a new house or to add a room, kitchen, or balcony to their existing house.
8. The beneficiaries under Economically Weaker Sections can have annual income up to Rs.3 lakh. Also, beneficiaries with an annual income of Rs.3 lakh to Rs.6 lakh fall under the Low-Income Group category.
9. The carpet area for Economically Weaker Sections can go up to 30 square metres and the carpet area for Lower Income Groups can go up to 60 square metres.
10. Preference will be given to women, Scheduled Tribes, Scheduled Castes, backward classes, minorities, people with disabilities, and transgenders.
11. Under the Middle-Income Group, there are two sets of beneficiaries. The first set MIG-I covers people with an annual income of Rs.6 lakh to Rs.12 lakh p.a. The second set called MIG-II covers people who fall in the income group of Rs.12 lakh to Rs.18 lakh p.a.
12. An Interest rate subsidy of 4% and 3% will be given to those who fall under MIG-I and MIG-II respectively. For both sets of beneficiaries, the maximum tenure of loan can go up to 20 years.
13. The maximum loan amount can go up to Rs.9 lakh for MIG-I and Rs.12 lakh for MIG-II. Also, the discount rate for Net Present Value(NPV) is 9% for both MIG-I and MIG-II.
14. Recently, the Cabinet increased the carpet area from 90 square metres to 120 square metres for MIG-I. The carpet area for MIG-II was also increased to 150 square metres which was 110 square metres previously.

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