Government of India has given people the chance to save on their home loans through Credit linked Subsidy Scheme (CLSS). The interest saving scheme is bound to a certain category of earning people. Still, its importance does not get any lesser.
So, in this article we have given the eligibility based on which the interest subsidy scheme under PMAY is available.
You must have heard that the interest linked subsidy is available to those who match the income criteria. Also, not all banks facilitate the service. Read more such hidden facts about CLSS in this article.
What is CLSS?
Under this CLSS-MIG scheme, the customers can get the interest subsidy of up to 4% for the 20 years home loan. A beneficiary receiving the subsidy of ₹2.67 Lakh on a loan amount of ₹20 Lakh for 20 years loan tenure, at an interest rate of 8.30% actually gets loan at an effective home loan rate of 4.30%.
Who are eligible for CLSS?
There were three types of interest subsidy schemes CLSS EWS/LIG and MIG-I/II. The eligibility for each scheme is different. Read below how does it vary:
The beneficiaries of Economically Weaker Section (EWS) and Low Income Group (LIG) seeking home loans are eligible for an interest subsidy at the rate of 6.50% interest subsidy on a loan of upto ₹6 lakh and additional loans beyond ₹6 lakhs (if any) will be at non-subsidized rate.
The carpet area of houses constructed should be up to 30 square metres and 60 metres for EWS and LIG. The beneficiary can build a house of larger area but the interest allotment would be limited and applicable to first ₹6 lakhs only.
The Middle Income Groups (MIG) with income segments between ₹6,00,001 to ₹12,00,000 (MIG-I) and ₹12,00,001 to ₹18,00,000 (MIG-II) in a year. As per the scheme, an interest subsidy of 4% has been provided for the loan amount up to ₹9 lakhs for MIG-I segment whereas, for MIG-II, an interest subsidy of 3% has been provided for the loan amount up to ₹12 lakhs.
CLSS for MIG -I support the construction or acquisition of house or re-purchase of the house of the carpet area of 160 square meters and for MIG-II the carpet area of 200 square meters.
What is the last date of availing CLSS benefit?
The interest subsidy is available till March 2019. So, if you have a requirement of home loan before that, you can get get this benefit. The condition, however, is that you must match the income criteria.
Top lenders such as SBI, HDFC, PNBHFL, and Indiabulls are among the 70 financial institutions where you can apply for home loan under PMAY-CLSS.