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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 the loan’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.
To apply for this scheme, you are required to fall within any of these four income categories. Housing finance interest rates will be relaxed according to your economic group.
Economic groups in the context of the PMAY/CLSS are defined as:
|Economic Group||Income (per annum)|
|EWS (Economically Weaker Sections) LIG (Low Income Groups)||Up to Rs. 3 lakhs|
|LIG (Low Income Groups)||Rs. 3 lakh to Rs. 6 lakhs per annum|
|Middle Income Group 1 (MIG1)||Rs. 6 lakhs to Rs. 12 lakhs per annum|
|Middle Income Group 2 (MIG2)||Rs. 12 lakhs to Rs. 18 lakhs per annum|
Here is a list of additional eligibility criteria for the CLSS:
There is no fee, bank charges or miscellaneous charges hidden in your monthly EMI for processing a CLSS subsidy application.
Here are the PMAY (Pradhan Mantri Awas Yojana) benefits related to home loan tenures and subsidies. Note that female ownership is mandatory for EWS and LIG.
|Benefits||EWS(Economically Weaker Sections)||LIG (Low Income Groups)||MIG I(Middle Income Group I)||MIG II(Middle Income Group II)|
|Loan Tenure||20 Years||20 Years||20 Years||20 Years|
|House Up-Gradation||Covered||Covered||Not Covered||Not Covered|
|Female Ownership||Mandatory||Mandatory||Not Mandatory||Not Mandatory|
|Maximum Loan Amount for Subsidy||Up to 3 Lakh||Up to 6 Lakh||Up to 9 Lakh||Up to 12 Lakh|
|Maximum Subsidy||Rs.2.67 Lakh||Rs.2.67 Lakh||Rs.2.35 Lakh||Rs.2.30 Lakh|
|Subsidy||6.5 % of home loan interest rate||6.5 % of home loan interest rate||4% of home loan interest rate||3% of home loan interest rate|
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.
Are you eligible for the CLSS? Go ahead and 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 and ensures that your loan journey is hassle-free.
Policies, Codes & Other Documents