Credit Linked Subsidy Scheme (CLSS) is one of the four verticals of Pradhan Mantri Awas Yojana-Urban (PMAY-U) under which interest subsidy is provided on home loans taken by eligible beneficiaries of Economically Weaker Section (EWS) and Low-Income Group (LIG) for acquisition of houses by purchase/ re-purchase or construction of houses and for incremental housing. CLSS for Middle Income Group (MIG) was made operational w.e.f.01.01.2017, initially for one year and was extended up to 31.03.2021
Credit Linked Subsidy is central sector scheme under Pradhan Mantri Awas Yojana (Urban) wherein interest subsidy on home loan is provided through CNAs and PLIs to the EWS/LIG/ MIG beneficiaries for purchase, construction or enhancement of house.
CLSS Scheme Details:
|Particulars||EWS||LIG||MIG I||MIG II|
|Household Income (Rs.)||Upto 3,00,000/-||3,00,001/- to 6,00,000/-||6,00,001/- to 12,00,000/-||12,00,001/- to 18,00,000/-|
|Interest Subsidy (% p.a.)||4.0%||3.0%|
|Maximum Loan Tenure|
|Eligible Housing Loan Amount for Interest Subsidy (Rs)*||6,00,000/-||9,00,000/-||12,00,000/-|
|Dwelling Unit Carpet Area (Up to) in sq. m||Up to 30# sq.m||Up to 60# sq.m||Upto 160 sq.m||Upto 200 sq.m|
|Discounted Rate for Net Present Value (NPV) calculation||9%|
Interest subsidy is credited upfront to the loan accounts of beneficiaries through Primary Lending Institutions resulting in reduced effective housing loan and Equated Monthly Instalment (EMI). Net Present Value (NPV) of the interest subsidy is calculated at a discount rate of 9 %.
# The beneficiary, at his/her discretion, can build a house of larger area but interest subvention would be limited to first Rs. 6 lakh only.
* Loans beyond this limit will not get interest subvention.
Beneficiaries of Economically Weaker section (EWS) and Low Income Group (LIG) seeking housing loans from Banks, Housing Finance Companies and other such institutions are eligible for an interest subsidy at the rate of 6.5% for tenure of 20 years or during tenure of loan whichever is lower.
The credit linked subsidy is available only for loan amounts upto Rs.6 lakh and additional loans beyond Rs.6 lakh, if any, will be at non-subsidized rate. Credit linked subsidy is available for housing loans availed for new construction and addition of rooms, kitchen, toilet etc. to existing dwellings as incremental housing. The carpet area of houses being constructed under this vertical of the Mission should be upto 30 m2 and 60 m2 for EWS and LIG respectively to avail of this credit linked subsidy. The beneficiary, at his/her discretion, can build a house of larger area but interest subvention would be limited to first Rs.6 lakh only.
The CLSS for MIG covers two income segments in the MIG viz. Rs.6,00,001 to Rs.12,00,000 (MIG-I) and Rs.12,00,001 to Rs.18,00,000 (MIG-II) per annum. In MIG-I, interest subsidy of 4% has been provided for loan amounts upto Rs.9 lakh while in MIG-II, interest subsidy of 3% has been provided for loan amounts upto Rs.12 lakh. The interest subsidy is calculated at 9% NPV over a maximum loan tenure of 20 years or the actual tenure, whichever is lower. Housing loans above Rs.9 lakh and Rs.12 lakh will be at a non-subsidized rates. CLSS for MIG will support acquisition/ construction of house (including re-purchase) of 160 m2 for MIG-I and 200 m2 carpet area for MIG-II as per income eligibility.
MoHUA, has identified Housing and Urban Development Corporation (HUDCO), National Housing Bank (NHB) and State Bank of India (SBI) as Central Nodal Agencies (CNAs) to channelize the loan amount subsidy to the Primary Lending Institutions (PLIs) and for monitoring the progress of CLSS vertical. MoHUA may notify other institutions as CNA in future.