PMAY CLSS Features to Own a Home Now

Buying a home is often a costly affair for most people. Financially marginalised people can find it even harder to own a home among the soaring property prices in the country. While various affordable housing projects can provide economical housing options, many people can still find their budget stretched for buying a home.However, the Credit Linked Subsidy Scheme offered under the Pradhan Mantri Awas Yojana can help such people fulfil their dream of having a home. The scheme can be availed by any Indian citizen belonging to the low-income group (LIG), middle-income group (MIG), or economically weaker section (EWS).

The Government of India launched the Pradhan Mantri Awas Yojana (PMAY) in 2015 with a vision to provide affordable housing to the Indians belonging to the financially deprived or poorer section of the society.The credit-linked subsidy scheme (CLSS) is a sub-scheme under the PMAY that offers subsidised home loan interest rates to the borrowers if they meet certain eligibility conditions.

Indian citizens can avail of the benefits of CLSS if they meet the following eligibility criteria.

• 323 sq ft for EWS
• 646 sq ft for LIG
• 1722 sq ft for MIG-I
• 2153 sq ft for MIG-II

• In the case of EWS, at least one female member of the family should be a co-owner of the property.
• The applicant or anyone from the applicant’s family should not own a pucca house in any part of India.
• The beneficiary family should not have availed of any housing scheme from the Government of India before.
• In the case of married couples, a single subsidy can be availed of by either of the spouses. However, both spouses can jointly apply for a subsidy if the property will be jointly possessed by them.
• The location of the property should be an area listed in the 2011 census.
• The residential property should be a single unit or a unit in any multi-storeyed building having the basic facilities and infrastructure like toilet, water, sewerage, road, electricity, etc.
• The carpet area of the residential property should not exceed

• Income Eligibility
• Other Eligibility Criteria

We can take the help of the free online home loan EMI calculator by Aditya Birla Capital for this purpose.Consider that you have taken a home loan of Rs 24 lakh for a loan repayment tenure of 20 years at an interest rate of 12 per cent. Therefore, your EMI will be Rs 26,426.00.However, if you are eligible to avail of CLSS subsidy under the MIG-II group, you will be eligible for subsidy on a loan amounting to Rs 12 lakh. Therefore, you will have to pay 3 per cent interest on this amount. Hence, your EMI will be Rs 6,655.00. For the remaining Rs 12 lakhs, your EMI will be Rs 13,313.00 based on the regular 12 per cent interest rate.Therefore, the whole calculation can be summed up in the following table.

It is clear from the above table that you can save a whopping Rs 77,496 every year on EMIs if you avail of the home loan under the CLSS scheme.

1. Contact a financial institution covered under the PMAY CLSS scheme and ask for the loan subsidy available under the scheme.
2. Duly fill the loan subsidy application along with the necessary documents.
3. The lender will disburse the loan amount to your bank account after completing the verification process.
4. Once you get the loan amount, the lender will approach the concerned government agencies to start the process of providing you with the subsidy that you are entitled to.

The PMAY CLSS can help you in realising your dream of owning a home at a much affordable EMI. So choose the right home loan, find out your eligibility for getting the subsidy amount and start house-hunting.

• 1.1.Visit https://pmayuclap.gov.in/
• 1.2.Click the tab named “CLSS Tracker”.
• 1.3.Enter your application id and click on the “Get Status” tab.
• 1.4.Alternatively, you can dial the following PMAY toll-free numbers and know the status.
  1800-11-3377/3388/6163

1. How to check your CLSS status?
2. How will interest subsidy be credited? Interest subsidy will be credited upfront, and the borrower would pay reduced EMIs on the balanced loan amount.For example, if you borrow a loan of Rs 6 lakh and get a subsidy of Rs 2 lakh, then the amount of Rs 2 lakh would be reduced from your loan.As a result, your loan would get reduced to Rs 4 lakh, and you will pay EMI on this reduced loan amount for your remaining loan tenure.
3. Can I get a home loan for a tenure of more than 20 years under CLSS? Yes, you can avail of a home loan for a tenure of more than 20 years. However, the interest subsidy would be restricted to a maximum of 20 years.
4. How many days will it take to get the PMAY-CLSS subsidy?

You can expect to receive the subsidy amount in your home loan account within 3 to 4 months. This is the time taken by the government for the verification process.

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.