Credit Linked Subsidy Scheme for EWS / LIG / MIG 2024

Credit Linked Subsidy Scheme for EWS/LIG – Interest subsidy of up to Rs.2.67 lakh, Documents, Eligibility, Process, How to apply for CLSS?

The Centre has extended the Credit Link Subsidy Scheme (CLSS) on home loans for the Middle Income Group (MIG) under the Pradhan Mantri Awas Yojana (Urban) till March, Union Housing and Urban Affairs Minister Hardeep Singh Puri. The lender on an average has been approving 8,000 loans on a monthly basis to the EWS and LIG segments, with monthly average approvals at about Rs 1,300 crore, it added. Hdfc home loans to the EWS and LIG segments grew 32 per cent and 39 per cent, respectively. The average home loan to the EWS and LIG segment stood at Rs 10.24 lakh and Rs 17.38 lakh, respectively.

How to apply Credit Linked Subsidy Scheme

The beneficiaries eligible for interest subsidy under CLSS MIG or CLSS LIG/EWS can directly apply to PLIs and PLIs after due verification of applications will sanction loans and thereafter claim the subsidy from CNAs. MIG class has been extended till 31 Mar 2024.

CLSS comes under the Pradhan Mantri Awas Yojana (PMAY)- Housing for All (Urban) by 2024 scheme and is for the beneficiaries of Economically Weaker Section (EWS), Low Income Group (LIG) and Middle Income Group (MIG).

Highlights of CLSS Scheme 2024

1. EMI for MIG beneficiaries will come down by over Rs.2,000 per month, says NHB Chief
2. Loan tenure of CLSS for EWS and LIG also increased to 20 years from 15 years to enable easy repayment
3. Housing for All mission now covers people with income of up to Rs.18 lakh per year in urban areas
4. 70 Lending Institutions sign MoUs with National Housing Bank for implementation of CLSS­MIG
5. Interest subsidy of 4% on housing loans of up to Rs.9.00 lakhs of those with an income of Rs.12.00 lakh per year
6. Interest Subsidy of 3% on housing loans of up to Rs.12.00 lakh of those earning Rs.18.00 lakh per year.
7. No processing fee will be charged by PLIs from the applicants under CLSS.

Credit Linked Subsidy Scheme for EWS/LIG*

Beneficiaries of Economically Weaker section (EWS) and Low Income Group (LIG) seeking housing loans from Banks, Housing Finance Companies and other such institutions would be eligible for an interest subsidy at the rate of 6.5% for a tenure of 20* years or during tenure of loan whichever is lower.

Major Highlights

loan amounts upto Rs 6 lakhs, and additional loans beyond Rs. 6 lakhs, if any, will be at non-subsidized rate
availed for new construction and addition of rooms, kitchen, toilet etc
Carpet area = upto 30 square metres and 60 square metres for EWS and LIG

Credit Linked Subsidy Scheme for MIG*

The newly launched 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 the MIG-I, an interest subsidy of 4% has been provided for loan amounts up to Rs.9 lakh while in MIG-II, an interest subsidy of 3% has been provided for loan amount of Rs.12 lakh. The interest subsidy will be calculated at 9% NPV over a maximum loan tenure of 20 years or the actual tenure, whichever is lesser. Housing loans above Rs. 9 lakh and Rs. 12 lakh will be at non-subsidized rates.

CLSS for MIG will support acquisition/ construction of house (including re-purchase) of 90 square meters and 110 square meters carpet area as per income eligibility.