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What is CLSS under PMAY and these Benefits Under this Subsidy?

The motive of the Indian Government has been to provide many benefits to different sections of societies. One of the most talked-about schemes of the Indian Government has been the Pradhan Mantri Awas Yojana (PMAY). The PMAY scheme was launched amid much fanfare in 2015 by our Prime Minister Narendra Modi. The objective of the PMAY scheme was to provide affordable housing solutions to all by 2022. Under this plan, the Government intended to build affordable houses using sustainable technologies. One of the key aspects of the PMAY scheme is the launch of the Credit Linked Subsidy Scheme (CLSS). It was launched with a mission to help home loan applicants in different income groups enjoy interest rate subsidies. Based on your income group, it is possible to enjoy a home loan interest subsidy of up to 6.5% up to Rs.2.67 lakh. 

Here is a quick post about the CLSS vertical of the PMAY scheme and its vital benefits. Read on!

What are the benefits of the CLSS scheme?

A beneficiary family who does not have a pucca home anywhere in India can apply for the CLSS scheme. A beneficiary family means a husband, wife, unmarried sons, and daughters. 

Depending on your income group, you will be able to enjoy savings of up to Rs.2.67 lakh or 6.5% on home loan interest. The eligible loan amount may vary between Rs.6 lakh and Rs.12 lakh as per your income categories. The carpet area of your new home should vary between 30 sq mt and 200 sq mt. 

What are income groups under the CLSS scheme?

  1. A person or a beneficiary family earning a yearly income of up to Rs.3 lakh is categorized under the Economically Weaker Section (EWS). 
  2. Low Income Group (LIG) applicants are those with an annual income of up to Rs.6 lakh. 
  3. Mid Income Group 1 (MIG 1) members need to have an annual income ranging between Rs.6 lakh and Rs.12 lakh. 
  4. For Mid Income Group 2 (MIG 2) members, their annual income should be between Rs.12 lakh and Rs.18 lakh. 

Who can avail of the PMAY scheme CLSS subsidy?

  1. If you belong to the EWS category, you can enjoy a 6.5% subsidy on a home loan interest rate up to Rs.2.67 lakh. The home loan amount should be Rs.6 lakh over a 20 years tenor with a max carpet area of 30 sq mt. 
  2. For LIG applicants, they can enjoy all similar benefits as EWS. The only difference is that their home’s carpet area should not go beyond 60 sq mt. 
  3. MIG 1 applicants can get 4% on housing loan interest rate to Rs.2.35 lakh. The maximum loan amount is Rs.9 lakh with a home carpet area of up to 160 sq mt. 
  4. MIG 2 CLSS scheme applicants are allowed to avail of 3% subsidy housing finance interest with a max loan amount of Rs.12 lakh. The carpet area of the home should not exceed 200 sq mt. 

What documents are needed to apply for CLSS under the PMAY scheme?

You don’t need any extra documents to avail of CLSS scheme advantages. You only have to submit a declaration that you don’t own any pucca home. If you don’t have income proof, you can file an affidavit to declare your overall family income. 

In case if you don’t have your own pucca home and have not availed of any benefits of earlier housing scheme benefits, you can apply for the PM Awas Yojana’s CLSS. 

Most of the leading banks and non-banking finance companies (NBFCs) are already participating in the CLSS scheme of PMAY. You can check the same with your preferred lender about the plan coverage and get started.       

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