The PMAY is in charge of the Credit Linked Subsidy Scheme (CLSS) which is managed directly by the Center. The government allocated Rs.4,000 crore for the Credit Linked Subsidy Scheme (CLSS) and reinstated the interest subsidy under the Pradhan Mantri Awas Yojana (Urban) 2.0 on Tuesday. The primary objective of the scheme is to support the expansion of institutional credit flow which will allow the impoverished in urban areas to quickly satisfy their housing demands. In this article you get every necessary information regarding this scheme such as objective, eligibility, documents, benefits and apply online.
Read Also –PM Awas Yojana Urban 2.0
Credit Linked Subsidy Scheme
The Credit Linked Subsidy Scheme (CLSS) guarantees housing affordability for all and offers funding for independently built or restored homes that are supervised by surveys. The CLSS program will be run as a central sector initiative. The PMAY CLSS Scheme will be implemented in India through two central nodal entities Housing Urban Development Corp and National Housing Bank. The Union Housing and Urban Affairs Ministry states that the lower income group (LIG), medium income group and economically weaker section (EWS) would soon be able to take advantage of the interest subsidy program.
The government did not prolong the duration of CLSS under PMAY which offered income-based house loans that were subsidized, nearly two years ago. Finance Minister Nirmala Sitharaman announced the budget 2024-25 presentation to the Lok Sabha, saying that the PM Awas Yojana would build an extra three crore homes in rural and urban regions for which the required funding is being provided. A financial document states that Rs 3,000 crore has been set out for EWS and LIG groups to build CLSS-eligible homes in urban regions with the middle-class population.
Overview Of Credit Linked Subsidy Scheme
| Name of the scheme | Credit Linked Subsidy Scheme |
| Launched by | Central Government of India |
| Beneficiaries | Economically weaker section (EWS), lower income group (LIG) and middle-income group |
| Objective | To address the housing demands of our nation’s urban poor population, institutions should increase the flow of credit |
| Budget Allocated | Rs 4,000 crore |
| Application mode | Online |
| Official website | pmay-urban.gov.in |
Read Also –Pradhan Mantri Awas Yojana
Objective Of Credit Linked Subsidy Scheme
The Indian government seeks to solve the housing requirements of the country’s urban poor population by increasing the flow of credit into institutions through the scheme. This scheme will focus on the demand side of the affordable housing financing market in addition to delivering the credit flow required to satisfy housing demands.
Benefits Of Credit Linked Subsidy Scheme
- Along with the purchase of real estate, CLSS is available for new construction as well as additions and renovations of rooms, kitchens, bathrooms and other parts of existing residences.
- Affordable housing is being promoted by the government through the Housing for All initiative administered by CLSS.
Eligibility Criteria
| Parameters | Economically Backward Section | Lower Income Group | Middle Income Group -I | Middle Income Group – II |
| Annual household Income | Rs.3 lakh | More than Rs.3 lakh and Rs.6 lakh | Rs.6 lakh and Rs.12 lakh | Between Rs.12 lakh and Rs.18 lakh |
| Eligible home loan amount | A maximum of Rs.6 lakh | A maximum of Rs.6 lakh | A maximum of Rs.9 lakh | A maximum of Rs.12 lakh |
| Loan tenure | 20 years | 20 years | 20 years | 20 years |
| Discounted NPV | 9% | 9% | 9% | 9% |
| Interest subsidy | 6.5% | 6.5% | 4% | 3% |
| Revised carpet area | 30 sq.m | 60 sq.m | 160 sq.m | 200 sq.m |
Required Documents
- Aadhaar card
- Income certificate
- PAN card
- Address proof
- Property documents
- Bank account details
- Mobile number
Read Also –PM Usha Scheme
Application Process Of Credit Linked Subsidy Scheme
- You need to check your eligibility before applying for the Home Loan Credit Linked Subsidy Scheme.
- In the event that you meet all eligibility requirements, you must contact the banks or other financial organizations that are involved in PMAY.
- Fill out the PMAY Home Loan Credit Linked Subsidy Application and send it to the lender with the required documents.
- The proceeds of the home loan will be sent into your bank account after verification.
- When the loan is disbursed, your lender will initiate contact with the nodal entities to begin the process of collecting interest subsidies.
- Following verification, the interest subsidy will be transferred to your loan account, lowering both your Equated Monthly Installment and the total amount of the loan.
FAQ’s
Is the interest rate variable or fixed?
The Pradhan Mantri Awas Yojana-Credit Linked Subsidy Scheme has a fixed interest rate of 6.5% for a period of 15 years.
Is there a loan cap under the Pradhan Mantri Awas Yojana – Credit Linked Subsidy Scheme?
No, there isn’t a restriction on loans; nevertheless, the highest amount of loan subsidies is Rs. 6 lakhs.
Who is eligible for an interest subsidy under the PMAY CLSS?
A beneficiary household is eligible for this subsidy if they meet specified income standards and do not own a home in any part of India.
What is the official website of the scheme?
pmay-urban.gov.in
Read Also –AABCS Scheme