Credit Linked Subsidy Scheme: All You Need To Know as a First-Time Homebuyers

In 2015, the Government of India launched a scheme to help the financially deprived population living in urban areas to get a roof over their heads - known as the Pradhan Mantri Awas Yojana.

Credit Linked Subsidy Scheme (CLSS) is a component of PMAY for Lower Income Group/Economically Weaker Section (EWS/LIG) and Middle Income Group (MIG – I &; II). Under this scheme, not only the economically weaker sections but also middle-income groups can avail a home loan at reduced EMIs.

Thus the government is offering a helping hand to those who are planning to buy a house amidst the current covid-19 crisis to encourage first-time home buyers.

At Shubham, our goal is that everyone should have their own home. We help you to fulfil your dream through the Pradhan Mantri Awas Yojana – Credit Linked Subsidy Scheme (PMAY-CLSS). Shubham Housing Finance helps beneficiaries to avail of this subsidy across the country.

An applicant can take advantage of a maximum interest subsidy of up to Rs. 2.67 lakhs. The central government offers an interest subsidy that is credited to the account of the qualifying beneficiary. Eventually, a beneficiary earning subsidy from Rs. 2.67 lakhs on a loan sum of Rs. 20 lakhs for a tenure of 20 years at an interest rate of 11% receive a home loan at an efficient rate of 8.79%.

The scheme is available to those who do not own a “pucca house” of their own anywhere in India. Second, the subsidized interest rates vary according to annual income, loan tenure, and loan amount.

A MIG I category can get an interest subsidy of Rs 4 per cent on an annual household income between Rs 6 lakh to 12 lakh. The subsidy is available for acquiring or constructing a house with a carpet area of up to 160 square meters. For MIG II, this limit is 200 sq.m. The home must have necessary infrastructures such as water, sanitation, sewerage, and access to road and electricity.

Those in the economically weaker section (EWS) and low-income group (LIG) categories can get a maximum subsidy of ₹2.67 lakh. In contrast, for MIG I and MIG II categories, the subsidy limit is ₹2.35 lakh and ₹2.30 lakh respectively.

You can calculate how much subsidy you are eligible for at http://www.pmaymis.gov.in.

The best part of the scheme is that this scheme is brought into action to make sure you become a homeowner on simple terms. If you want to avail a loan under the CLSS scheme, the procedure is relatively easy. All you need to do is fill the application form along with the related documents. 

 

The housing finance company shall approach the nodal agencies to begin the process of transferring the subsidy to your bank account that you are entitled to.

After that, the interest subsidy gets credited upfront to the borrower’s account, thereby reducing the outstanding loan amount and reducing the equated monthly installments (EMIs).

You can also track the application status at pmayuclap.gov.in. Typically, it takes three to six months for the subsidy to get credited to your account.

Conclusion:

This initiative by the government is playing a pivotal role in increasing the demand for housing in the affordable segment, encouraging more people to fulfill their aspirations of buying a home. According to the government, the extension of the CLSS for the MIG category until March next year is expected to benefit 2.5 lakh, middle-income families, in the current fiscal year.

Thus, it is a good step taken by the government to help the housing sector in coping with the COVID-19 crisis. The government should consider extending the CLSS until March 2024 for all the income categories.

If you have any more queries related to PMAY- CLSS scheme, you can write to us in the comment section below. You can also check the website Shubham Housing Finance to apply for the CLSS subsidy.