The government launched the ‘Pradhan Mantri Awas Yojana’ scheme with the mission that every Indian household should have a apna ghar by 2022. Under the scheme, home loan interest subsidy can be availed by individuals if they meet the necessary criteria. The interest subsidy is provided under the Credit Linked Subsidy Scheme (CLSS).
What is Credit Linked Subsidy Scheme (CLSS)?
Under the Credit Linked Subsidy Scheme the central government offers interest subsidy on home loans availed to applicants who basically come under following categories.
- EWS (Economically Weaker Section)/LIG (Low Income Group)
- Revised EWS (Economically Weaker Section)/LIG (Low Income Group)
- MIG – I (Middle Income Group 1)
- MIG – II (Middle Income Group 2)
Economical Weaker Section/Lower Income Group
For EWS/LIG group the interest subsidy offered at the rate of 6.50%. This subsidy is offered for a maximum duration of 15 years. The available amount of subsidy for this category is ₹2.20 lakh.
Revised Economical Weaker Section/Lower Income Group
Interest subsidy offered for revised EWS/LIG group is 6.50%. This subsidy offered under the actual tenure of the home loan or for a period of 20 years. Maximum subsidy amount for this category is ₹2.67 lakh.
Middle Income Group – 1
MIG 1 applicant get the subsidy at the rate of 4% with maximum loan amount of 9 lakh. This subsidy offered under the actual tenure of the home loan or for a period of 20 years. Maximum subsidy amount for this category is ₹2.35 lakh.
Middle Income Group – 2
Under MIG 2 the loan amount is 12 lakh at the interest rate of 3%. An applicant can get maximum subsidy amount of ₹2.30 lakh for the home loan tenure of 20 years.
Pradhan Mantri Awas Yojana – Credit Linked Subsidy Scheme Details:
Are You Eligible To Get The Benefits Of Subsidy Under PMAY?
In order to get the subsidy the following criteria should be fulfilled.
- The person shouldn’t own a pakka home in his/her name or on any other member of family.
- The ownership of the house should either be in the name of the female member of a household or in joint ownership with your wife (applicable to EWS/LIG and revised EWS/LIG schemes only).
- Should meet the income criteria as per various categories under the scheme.
- The carpet area of the house should be 30 sqm for EWS applicant, 60 sqm for LIG, 160 sqm for MIG 1 applicant, For MIG 2 it is 200 sqm.
- Should not have taken a home loan or availed interest subvention benefit under the scheme.
Maximum Subsidy You Can Get
In CLSS scheme one get maximum subsidy of ₹2.67 lakh offered at the rate of 6.50%.
FAQ’s on CLSS
- Is there a loan limited on the Pradhan Mantri Awas Yojana – Credit Linked Subsidy Scheme?
No, there is no loan limit, though the loan subsidy is limited to Rs.6 lakh only.
- Is the interest rate floating or fixed?
The interest rate is fixed at 6.5% for a period of 15 years.
- Which banks across the country offer the Credit Linked Subsidy Scheme?
All banks listed under RBI offers Credit Linked Subsidy Scheme.
- Who can get the benefit of CLSS?
A family who do not own a pakka home in any part of India is eligible for the subsidy but mind the income criteria.
- The interest subsidy offered under the CLSS applicable to houses in rural areas in India?
No.
- Can an applicant get the loan term more than 20 years?
Yes, he/she can, only provided the lender agrees.
- Is there any limit on the cost of the property to avail benefits under the CLSS?
No. There is no limit on the cost of the property but the subsidy will be limited to the loan amount defined against each category and additional amount will be at non- subsidized rate of interest.
- Should I need to provide any additional documents to avail this subsidy?
No. A self-declaration form signed by the applicant that he/she does not own any pakka home is sufficient.
- What happens if the construction of the house is stopped after the subsidy is disbursed?
In that case the lender will refund it to Central Government of India