CLSS—A Housing Scheme for Middle Income Groups
CLSS Housing Scheme
Pradhan Mantri Awas Yojana or better known as PMAY, launched by Prime Minister Narendra Modi, is a government initiative to provide affordable housing to all.
Credit-Linked Subsidy Scheme (CLSS) falls under the Pradhan Mantri Awas Yojana (PMAY), which provides subsidy to the urban poor of the country. CLSS can also be useful for constructing building extensions or making improvements to an existing house.
One basic requirement of CLSS is that the house constructed should be in the name of the female head of the household or in the joint names of the male head of the household and his spouse. If there is no adult female member in the family, only then the house can be in the name of male member of the household.
Middle Income Group
If you belong to the middle income group then you can also avail the PMAY subsidy home loan scheme under the two Middle Income Group categories, based on your eligibility. The two Middle Income Group categories are:
● Middle Income Group-1 (MIG-1)
● Middle Income Group-2 (MIG-2)
There is a slight difference between the two categories and the features are different as well.
MIG-1 (Middle Income Group-1)
1. Buyers belonging to this category should have an annual income ranging between Rs 6 lakhs and Rs 12 lakhs.
2. Interest subsidy is 4% for this category, for a maximum loan tenure of 20 years.
3. The carpet area made under this component should be up to 160 square metres.
4. Female ownership (of the house bought under the PMAY scheme) is not mandatory for buyers belonging to this category.
5. Maximum subsidy that you can get under this section is of Rs 2.35 lakh.
MIG-1 (Middle Income Group-2)
1. Buyers belonging to this category should have an annual income ranging between Rs 12 lakhs and Rs 18 lakhs.
2. Interest subsidy is 3.0% for this category.
3. The maximum carpet area of a property that can be financed under this component is up to 200 square metres.
4. Female ownership (of the house bought under the PMAY scheme) is also not mandatory for people belonging to this category.
5. Maximum subsidy that you can get under this section is of Rs 2.30 lakh.
Economically Weaker Section and Low Income Group
Here’s a quick look at the two other economic sections of the society who can benefit immensely from the PMAY scheme:
● Economically Weaker Section (EWS)
● Low Income Group (LIG)
| EWS | LIG |
| To belong to the EWS category your annual income must not be more than Rs 3 lakhs | To belong to the LIG category your annual income must be between Rs 3 lakhs and Rs 6 lakhs |
| Interest subsidy for this category is 6.5% | Interest subsidy for this category is also 6.5% |
| The carpet area under this component should be of up to 30 square metres | The carpet area under this component should be of up to 60 square metres |
| Female ownership (of the house bought under the PMAY scheme) is mandatory for buyers who belong to this category | Female ownership (of the house bought under the PMAY scheme) is also mandatory for buyers who belong to this category |
| Maximum subsidy that you can get under this section is Rs 2.67 lakh | Maximum subsidy that you can get under this section is also Rs 2.67 lakh |
See also: The Best Time to Apply for a Home Loan in India
If you belong to either of the two Middle Income Groups or the LIG or EWS group, you can apply for home loan at subsidised home loan interest rate.
You would have to pay less for your dream home if you are found eligible to be a beneficiary of the PMAY scheme. To get a grip over the loan terms use a home loan EMI calculator that can help in getting an estimate of the EMI value and loan tenure
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