The announcement by the Central government of India on 17th August 2016, ‘Housing For All by 2022’ was a welcome move! The initiative came clubbed with the Pradhan Mantri Awas Yojana (PMAY), and the scheme focuses on the urban poor Economically Weaker Sections (EWS), Lower Income Groups (LIG) and also on the Middle Income Groups (MIG) of the society.
In short, the government wants urban dwellers to own a home, and thus, they are encouraging prospective homebuyers (especially first-timers) to apply for housing loans with a trust-worthy lender and get the home they want through a hassle-free process. To boost this process, the government has launched the Credit-Linked Subsidy Scheme. Since securing a loan is similar to taking credit and the subsidy scheme announced by the government provides subsidies on the home loan interest rates, this scheme is called a Credit Linked Subsidy Scheme (CLSS).
Here are some insights into the scheme, where you can also know your eligibility for the home loan subsidy:
To avail a subsidy on home loan under this scheme, the applicant should not have any ownership of a house in his/her name or his/her family’s name. Also, the applicant and his/her family should not have availed any central assistance under any housing scheme of the central government. An applicant who is an adult earning member (married/unmarried), who doesn’t own a house in her/his name in India even if she/he currently dwells with her/his family (parents or other related members) will be considered a separate household under the confines of this scheme.
Note: You should be below 70 years of age.
This CLSS scheme is available at different rates for beneficiaries belonging to different financial backgrounds of the society as presented below:
|Household annual income
(Rupees per annum)
|Loan Amount (Rupees)||
Interest Subsidy Rates
|Up to 3 lakhs||Up to 6 lakhs||6.5%|
|LIG||Up to 6 lakhs||Up to 6 lakhs||
|Above 6 lakhs – Up to 12 lakhs||Up to 9 lakhs||
|MIG-II||Above 12 lakhs – Up to 18 lakhs||Up to 12 lakhs||
Currently, HUDCO and NHB have been identified by the government as Central Nodal Agencies (CNAs) to tie up with lenders to extend this facility.
You can apply for a home loan in any of the CLSS lender list whereupon credit appraisal, the specific form supplied by the CNAs will be sent to HUDCO/NHB. They will come back with approval after due verification and give their nod to the lending company. The home loan which will be disbursed to you will already be subsidised since the government is subsidising the loan before disbursal. It will take 30 days to 45 days for CNAs, HUDCO and NHB to review a CLSS-linked home loan application. The lender usually disburses the loan subsidy amount to you when your application is approved, and the amount is received by them.
Subsidy through CLSS can be availed for both ready-to-move-in and under construction properties. The interest rate of the subsidy scheme can only be availed if the developer or the builder is a recognised one. This scheme is available with us at Indiabulls Housing Finance Company. So, if you are amongst the people who are eligible for the home loan subsidy, then you should apply for a home loan online under the PM Awas Yojana without any further delay!