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Pradhan Mantri Awas Yojana (PMAY) - Credit Linked Subsidy Scheme (CLSS)

09 December, 2020

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Given the estimated rate of Urbanization and the growing housing demands in India, the Ministry of Housing and Urban Poverty Alleviation or MoHUPA introduced the Credit-Linked Subsidy Scheme. This particular scheme was launched under Pradhan Mantri Awas Yojana, specifically to cater the Economically Weaker Section, LIG, and MIG.

What's the eligibility to avail this scheme? There are certain factors that should be met to take advantage of this process:
  1. Under this scheme, the beneficiary family, in no case should own a Pucca-House in the name of any member of the family, in any part of the country.
  2. Under this scheme, married couples together and also individuals are eligible for ownership.
  3. Under this scheme, the beneficiary family, in no case should have taken benefits of other central government assistance under any housing schemes or benefits under PMAY.
  4. The beneficiary family should not have availed of central assistance under any housing scheme from Government of India or any benefit under any scheme in PMAY.
Who will be considered the Beneficiary?

Under CLSS, the beneficiary family will consist of wife, husband and only unmarried children. If there is an adult earning member in the family, irrespective of marital status is considered to be a separate household in Middle Income Group.

What's the Coverage?

Each and every statutory town as per the Census of the year 2011, and town notified since are part of the coverage. It also includes planning area as notified with respect to statutory town.

CLSS Scheme Type Eligibility Household Income ( Rs.) Carpet Area-Max (sqm) Interest Subsidy (%) Subsidy calculated on a max loan of Loan Purpose Validity of scheme     Max Subsidy (Rs.) Woman Ownership
EWS and LIG Upto Rs. 6,00,000 60 sqm 6.50 % Rs. 6,00,000 Purchase/Self Construction/Extension 31/03/2022 2.67 Lacs Yes`
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

The ownership of a woman is not mandatory for construction/extension work. *The loan should be approved on or after MIG - 1 & 2.

Some important terms and conditions that should be taken into account.
  1. The beneficiary family must provide Aadhar Card number for MIG category.
  2. The subsidy on interest rates will be available for a maximum 20-year loan tenure or lower.
  3. This subsidy will be credited upfront resulting in reduced Equated Monthly Installment (EMI). The subsidy will be credited to the loan account of beneficiaries.
  4. The NPV or Net Present Value of this subsidy will be calculated at 9%.
  5. If there is a requirement for any additional loan, they will be provided at the non-subsidized rate.
  6. The scheme put no cap on the cost of the property or the loan amount.

You can read more about this scheme and start your application process on the Government Of India’s website for PMAY.

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