The Credit Linked Subsidy Scheme or CLSS is one of the components of the Pradhan Mantri Awas Yojana or PMAY. It provides a subsidy on home loan interest rates (can be calculated using a home loan calculator online) and significantly brings down theloan’s total EMI amount making it easier to buy a house.

CLSS was introduced to provide affordable housing especially to families that fall under the Economically Weaker Sections (EWS), Lower Income Groups (LIG) and Middle Income Groups (MIG). There is an unavailability of institutionalised housing finance options at lower rates which is where this subsidy makes a significant contribution.

Are you eligible for CLSS under PMAY?

  • The applicant or the household (husband, wife and 2 unmarried children) should not already own a pucca house in any part of India
  • The applicant should fall within any of these four income categories. Housing finance interest rates will be relaxed accordingly
EWS (Economically Weaker Sections) or LIG (Low Income Groups) Rs. 3 lakhs – Rs. 6 lakhs per annum Interest rate Subsidy of 6.50%
Middle Income Group 1 (MIG1) Rs. 6 lakhs – Rs. 12 lakhs per annum Interest rate Subsidy of 4.00%
Middle Income Group 2 (MIG2) Rs. 12 lakhs – Rs. 18 lakhs per annum Interest rate Subsidy of 3.00%
  • Location of the desired property must be enlisted within the statutory towns list provided by the 2011 census
  • A female member must co-own the property for applicants falling in the EWS and LIG categories
  • Applicant(s) should not have availed of any the previous government housing subsidies
  • Home loan subsidies under this scheme would apply on loans of only up to Rs. 6 lakhs.
  • Maximum subsidy provided will be of Rs. 2.67 lakhs 

There is no fee, bank charges or miscellaneous charges hidden in your monthly EMI for processing a CLSS subsidy application.

How can you avail of this scheme?

Identify the lending institutions that are affiliated with the PMAY Scheme. This can be done through scourging your newspaper or doing a quick search on the internet. After correctly identifying them visit the nearest branch to avail a loan. They will provide you with the home loan subsidy application which will have to be duly filled. You will also be asked to submit several documents such as your identity proof, income proof, property documents etc. for verification. Once all your documents are as per the checklist and if your application is deemed eligible for this subsidy, the sanctioned housing loan amount will be disbursed into your desired bank account. This lender is responsible for the paperwork required for you to receive your subsidy.

Prepare your application well and make sure your paperwork is complete as this will expedite the entire process. Apply for a home loan at Tata Capital and avail the subsidised rates of interest under the CLSS scheme.  Simply log on to our website and check your eligibility with our home loan EMI calculator. Using our EMI calculator for home loan saves you the time and energy in calculating your EMI payments.

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