Thiruvananthapuram Few takers from Middle Income Groups for CLSS
Middle Income Groups for CLSS: First home buyers in Thiruvananthapuram belonging to middle income groups are yet to warm up to the credit-linked subsidy scheme under PMAY housing project.
The Union ministry of housing has recently extended the credit-linked subsidy scheme (CLSS) component of PMAY (Urban) to middle income groups with annual incomes in the range of Rs 12 lakh to Rs 18 lakh ensuring interest subsidies of 4% and 3% respectively in housing loans.
Under Credit Linked Subsidy Scheme, beneficiaries belonging to economically weaker sections (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 15 years. This was broadened in February to cover middle income groups (MIG) under two categories; MIG-1 with an annual income of up to Rs 12 lakh and MIG-2 with an annual income up to Rs 18 lakh at subsidies of 4% and 3% respectively.
While close to 5,000 beneficiaries have been incorporated in beneficiary led individual house construction component of PMAY, less than 90 applications have been received by corporation pertaining to CLSS. Beneficiaries belonging to LIGs or MIGs availing loans under CLSS need to produce an NOC from corporation which is then submitted in banks before loans are disbursed. The project officials say that most of these applications have come from low income groups and economically weaker sections. The number of applications under MIG-1 has been close to nil, the project officials said.
The condition regarding dimensions is being cited as one factor which deters prospective home buyers from lining up for CLSS in the city. As per the project guidelines, beneficiaries of MIG will be eligible for an interest subsidy only if the dwelling unit carpet area is 900 sq.ft for MIG-1 and 1,100sq.ft for MIG-2.
The low number of applicants is also attributed to reluctance of banks and complex procedures involved. “The scheme has not actually caught momentum in the banks. For LIGs, the beneficiaries are immediately directed to corporation for NOC and as regarding MIGs, there is lack of awareness. Even in the recently held bankers meeting, it was pointed out that the disbursal rate of housing loans has been low.
Source Link- https://timesofindia.indiatimes.com/city/thiruvananthapuram/few-takers-from-middle-income-groups-for-clss/articleshow/61027467.cms