Over the years, the Government of India has launched some affordable housing schemes to help prospective homebuyers. Pradhan Mantri Awas Yojana (PMAY) is one such scheme that was introduced in 2015 and is designed to help the financially weak population in urban areas. Under PMAY, you can benefit from a subsidy on the home loan interest rates, thus making the repayment process easier.
A component of the PMAY is the Credit Linked Subsidy Scheme (CLSS) which is implemented as a central sector scheme. Let us take a closer look at CLSS and how you can benefit from it.
Features of Credit Link Subsidy Scheme:
- All financial institutions listed under the RBI offer the Credit Link Subsidy Scheme.
- CLSS focuses on helping the Economically Weaker Sections (EWS), Middle Income Groups (MIG) and the Lower-Income Groups (LIG).
- Through this scheme, you can get a loan subsidy with the interest rate fixed at 6.5% for 15-20 years.
- To benefit from CLSS, you must apply for a home loan from a financial institution participating in the PMAY scheme.
- CLSS can only be used to purchase a residential property and not a commercial property.
Benefits of Credit Link Subsidy Scheme
Firstly, to avail of the benefits of CLSS, you must fulfil the standard eligibility terms and fall into the required categories eligible for this scheme.
- Special consideration for women
Under the PMAY scheme, a female family member must be the co-owner of the property. This is a mandatory clause under the LIG and EWS categories and optional under the MIG categories. If there is no female member in the household, the property can be registered under the male applicant’s name.
- High subsidies
CLSS can help you avail of a maximum subsidy of Rs 2.67 lakh based on your income group. It is added upfront to your loan account, and you enjoy a direct subsidy on the home loan interest rates that remain fixed throughout the loan tenure.
- Benefit for minorities
There are special provisions for minorities such as Scheduled Caste, Scheduled Tribe, OBC, and transgender individuals under Pradhan Mantri Awas Yojana. Also, senior citizens and disabled people can get special ground-floor accommodations under PMAY.
- Eco-friendly construction
Due to the PMAY scheme, builders have been instructed to use eco-friendly materials and sustainable technology in construction. This will lead to lower pollution levels and minimal damage to the environment. What’s more, it is mandatory to construct houses that meet the basic safety and structural requirements and must provide all essential services like water, sanitation and electricity.
Since owning a house is still a far-fetched dream for many in our country, the government has launched schemes like PMAY to give some respite to homebuyers. Thanks to these schemes, you can purchase a dwelling despite skyrocketing property prices. Now that you know what CLSS and PMAY and the benefits attached to them are, you must check if you are eligible for the schemes and pick a lender that offers housing loans in line with them. Further, you can use a home loan EMI calculator to get a clear estimate of your monthly installments after the subsidised rate.