Everything You Need To Know About CLSS:

Home is the primary need for everyone in our country. Everyone in our country works hard to get their own home in any way possible. But it’s not an easy task to own their own home for some sections in our society seeing the exorbitant prices they have to pay. On January 1, 2017, under the scheme of Pradhan Mantri Awas Yojana (PAMY), Credit Linked Subsidy Scheme was launched by the Ministry of Housing and Urban Poverty Alleviation (MoHUPA). Under this scheme, an interest subsidy will be given to the people who want to own their dream home. It is a kind of incentive given to the people of India through which they can be motivated to get a home loan for purposes like a home purchase, construction, improvement, and extension.

The government is leaving no stone unturned for their goal of Housing for All by 2022, and before this scheme was introduced, it was looking like an achievable task but after the CLSS scheme was introduced, there was a huge spike in home loans. CLSS is mainly for the applicants from Economically Weaker Section (EWS), Middle Income Group (MIG), and Lower Income Group (LIG). Through this scheme, the individuals who are planning to take their first home can get a huge benefit from it. In this article, we will tell you everything related to Credit Linked Subsidy Scheme.

Several Features of Credit Linked Subsidy Scheme:

Through this credit subsidy scheme, you can have nothing but huge savings on the interest you pay for your home loan. Thought the interest subsidy differs for the various categories of CLSS which are EWS/LIG, MIG1, and MIG2. The various benefits which they can get through this are as follows.

• Those who have an annual income of less than Rs 6,00,000 come in the category of EWS or LIG. The people in this category will have a chance to save up to a substantial 6.5% interest concession on loans up to Rs 6 Lakhs.
• The MIG1 (Middle Income Group) category belongs to those who have an annual income of Rs 6 Lakhs to Rs 12 Lakhs. This category can enjoy a 4% interest concession on loans up to Rs 12 Lakhs.
• Having an annual income between Rs 12Lakhs to Rs 18 Lakhs comes into the MIG2 category. People in this category can have a 3% interest concession on the loan up to Rs 12 Lakhs.
• The people in the EWS and LIG category can avail a maximum interest concession of Rs 2.67 Lakhs and the scheme can be benefitted only in the case of home buying and constructing the house.
• The loan period can be a maximum of 20 years.
• The maximum subsidy that can be availed by the MIG1/2 category is 2.35 Lakhs.
• Since the PMAY scheme does have more prospective in Tier-2 and Tier-3 cities of India than the Tier-1 Cities because of the availability and cost of affordable homes in these cities.
• The major benefit is the upfront credit of interest subsidiary to the beneficiary's loan account by the lending institution which ultimately results in the lesser amount of EMI. The net present value of the interest subsidiary is calculated at the rate of 9% per annum.
• There is no processing fee on the loans taken under the CLSS by the leading Banks and Financial Institutions.

Also, the government of India has recently extended the time for getting the benefit of interest subsidy scheme till March 31, 2020, for the individuals who are planning to buy their homes for the first time having an annual income between Rs 6 Lakh and Rs 18 Lakhs.

How can you get in touch with the CLSS Helpline Number:

If you’re having any problems or questions about your interest subsidy scheme, you can contact the National Housing Bank toll-free number 1800-11-3377 and 1800-11-3388.