PMAY Loan Scheme, Credit Linked Subsidy Scheme Eligibility, CLSS

PMAY Loan Scheme: Credit Linked Subsidy Scheme” (CLSS) as part of the “Housing for All by 2022” (HFA) mission to expand institutional credit flow to the housing needs of urban poor.


PMAY Loan Scheme, Credit Linked Subsidy Scheme Eligibility, Benefits

Credit Linked Subsidy Scheme Eligibility under Pradhan Mantri Awas Yojana (Urban) –“Housing for All” Mission for urban area is being implemented during 2015-2022 and this Mission will provide central assistance to implementing agencies through States and UTs for providing houses to all eligible families/ beneficiaries by 2022.

The Ministry of Housing and Urban Poverty Alleviation (MOHUPA) Government of India has implemented the Interest Subvention Scheme known as “Credit Linked Subsidy Scheme” (CLSS) PMAY Loan Scheme as part of the “Housing for All by 2022” (HFA) mission to address the housing needs of Economically Weaker Sections (EWS) and Low Income Groups (LIG) segments in urban areas.The Ministry has designed the Scheme for addressing the housing needs of the EWS/LIG segments in urban areas. The credit linked subsidy will be provided on housing loans taken by eligible urban poor (EWS/LIG) for acquisition, construction of house.

The Mission, in order to expand institutional credit flow to the housing needs of urban poor will implement Credit Linked Subsidy (CLSS) component as a demand side intervention.

Interest subsidy will be credited upfront to the loan account of beneficiaries through Primary Lending Institutions resulting in reduced effective housing loan and Equated Monthly Installment (EMI). The Net Present Value (NPV) of the interest subsidy will be calculated at a discount rate of 9 %.

Credit Linked Subsidy Scheme Eligibility

  • All Statutory Towns as per Census 2011 and towns notified subsequently would be eligible for coverage under the Mission.
  • Urban Local Bodies should ensure that individual houses under credit linked interest subsidy should have provision for basic civic services like water, sanitation, sewerage, road, electricity etc.
  • The minimum size of houses constructed under the Mission under each component should conform to the standards provided in National Building Code (NBC).
  • The houses under the Mission should be designed and constructed to meet the requirements of structural safety against earthquake, flood, cyclone, landslides etc.
  • The houses constructed/acquired with central assistance under the Mission should be in the name of the female head of the household or in the joint name of the male head of the household and his wife, and only in cases when there is no adult female member in the family, the house can be in the name of male member of the household.

Credit Linked Subsidy Scheme Eligibility, CLSS 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.
  • The Credit Linked Subsidy will be available only for loan amounts upto Rs 6 lakhs and additional loans beyond Rs. 6 lakhs, if any, will be at non subsidized rate.
  • Credit linked subsidy would be 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 component of the mission should be upto 30 square metres and 60 square metres for EWS and LIG, respectively in order 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.

Credit Linked Subsidy Scheme Eligibility, CLSS for MIG

  • The newly launched Credit Linked Subsidy Scheme 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 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 PMAY Loan Scheme for MIG will support acquisition/ construction of house (including repurchase) of 90 square meters and 110 square meters carpet area as per income eligibility.

CLSS for EWS/LIG’s Detailed Documentation | CLSS for MIG’s | FAQ

CLSS Toll-Free Helpline Numbers
NHB: 1800-11-3377, 1800-11-3388                 HUDCO: 1800-11-6163


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