[subsidy] Credit Linked Subsidy Scheme

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The government on announced the extension of the deadline for the affordable housing Credit Linked Subsidy Scheme (CLSS) till March 2021. The deadline for CLSS had expired on March 31, 2020. According to the government, this move will benefit 2.5 lakh middle income families during 2020-21. This announcement was part of the second trance of the government’s economic relief package.

Credit Linked Subsidy Scheme for Middle Income Group was ‘operationalized’ from May 2017. During her press conference, the finance minister, Nirmala Sitharaman, said,”Scheme has benefited 3.3 lakh middle class families so far. By extending the deadline, it will lead to investment of over Rs 70,000 crores in housing and will create jobs.

credit linked capital subsidy scheme


The Credit Linked Subsidy Scheme (CLSS), the Government aims at increasing the credit flow in institutions to meet the housing needs of the urban poor population in our country.Under the Middle Income Group (MIG), there are two sets of home buyer beneficiaries. The first one is MIG-I, which covers those homebuyer with an annual income of Rs 6 lakh to Rs 12 lakh per annum and the second one is MIG II, which covers home buyer who fall in the income group of Rs 12 lakh to Rs 18 lakh per annum.

Under this scheme, eligible families with annual household income between Rs. 6 lakh to Rs. 18 lakh per annum will now get another year to benefit from an upfront interest subsidy of up to Rs. 2.35 lakh on their approved home loans.

How Interest Subsidy is Calculated under CLSS

Particulars ME-I ME-II
Annual income Rs 6 lakh to Rs 12 lakh Rs 12 lakh to Rs 18 lakh
Maximum loan tenure 20 years 20 years
Housing loan amount eligible for interest subsidy Up to Rs 9 lakh Up to Rs 12 lakh
Revised carpet area 160 square metres 200 square metres
Interest subsidy 4% 3%

Who is Eligible for Credit Linked Subsidy Scheme

To avail CLSS benefits, individuals must fall into any of these income categories:

Credit Linked Subsidy Scheme (CLSS) for the Middle-Income Group (MIG) under Pradhan Mantri Awas Yojana (Urban) in respect of MIG I from “up to 120 square metre” to be increased to “up to 160 square metre” and, in respect of MIG II from “up to 150 square metre” to “up to 200 square metre

Other Eligibility Criteria for EWS/LIG and MIG Categories
• Property ownership must contain 1 female membership.
• A female member of the family must co-own the property.
• The household/applicant should not possess any pucca house in India.
• Property’s location must be within the 2011 census statutory towns.
• Applicant should not have taken any government assistance under housing schemes previously.

pradhan mantri awas yojana online form 2020

How to Avail of CLSS Subsidy Scheme

Begin by contacting the financial institutions covered under the PMAY scheme about your intention to avail a loan. They will then hand you the loan subsidy application, which you have to duly fill and submit along with the relevant documents. Upon verification, the housing loan amount will be disbursed to your bank account. Once this is done, your lender approaches the nodal agencies to start the process of injecting your bank account with the subsidy you are entitled to.

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