PMAY Subsidy: CLSS Meaning, Eligibility & Documents Required

If you are looking to own a house, but have second thoughts regarding the loan amount, the Pradhan Mantri Awas Yojana (PMAY) - Credit Linked Subsidy Scheme (CLSS) can pave the way for you. Here are details on eligibility, benefits, and how to avail PMAY subsidy.

There are some basic criteria that you need to satisfy in order to avail this loan subsidy.

1. The building, which would be purchased or constructed, should be in one of the statutory towns as mentioned in the Census 2011.
2. There should be no other pucca house in your or any of your family member’s names.
3. You and none of your family should have availed this scheme anywhere else in India.

(*family members = spouse and unmarried children)

The advantages can be varied depending upon your income group measured annually.

1. For MIG I (₹6 lakhs to ₹12 lakhs) – Here the interest is subsidised up to 4% on a maximum amount of ₹9 for houses that havea carpet area of up to 160 sq. metres.
2. For MIG II (₹12 lakhs to ₹18 lakhs) – In the case, the interest is subsidised up to 3% on a loan amount up to ₹12 lakhs for houses having a maximum carpet area of 200 sq. metres.
3. LIG and EWS (₹3 lakhs to ₹6 lakhs) – Here the subsidy on interest rate is up to 6.5% on a maximum loan amount of ₹6 lakhs only for those houses that havea carpet area ceiling of 60 sq. metres.

The working procedure can be best explained with the help of an example.If you, belonging to MIG category, have taken a home loan of ₹18 lakhs for 25 years at a rate of 9%, then the maximum subsidy would be ₹2,35,068. This would be calculated only for the 20 years period with an effective rate of interest of 5% (after a 4% subsidy). The rest amount will be charged at a normal rate of interest.

The process is simple. You just need to make the declaration of eligibility, for the schemes you’re eligible for, to your lending institution and it will carry out all the formalities on your behalf.
The subsidy amount will get credited to your account after the approval from the National Housing Bank (NHB).

The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.