Everybody dreams of having a home, but not everyone is privileged enough to build one, during their lifetime. However, with the Pradhan Mantri Awas Yojna (PMAY), things seem to look more towards the brighter side. Launched by our Prime Minister, Shri Narendra Modi, for the Low Income Group stratum and the Economically Weaker Sections of the society, this Housing for All plan seems to be like a blessing, with interest subsidy on the purchase or construction of a house.

The PMAY promises to provide central assistance to a variety of housing plans which also includes the CLSS, or the Credit Linked Subsidy Scheme. The CLSS is a central sector scheme that aims to increase the institutional credit flow to fulfil the needs of the poor related to their housing plans. Implemented through two central nodal agencies, the National Housing Bank (NHB) and Housing Urban Development Corp (HUDCO), this scheme has encouraged around 185 lending organisations from the housing finance industry to register for the greater cause and meet the demands of the poor for affordable housing options.

So how does the CLSS help to bring a change in the living conditions of the lesser privileged? The salient features that have been highlighted in the housing scheme, address the demand size issues of the affordable housing finance segment.

Ten important points that you need to take note of are:

1. An Interest subsidy of 6.50% p.a. up to a loan amount of 6 lakhs for a time of 15 years or the actual term, whichever is lower, can be credited upfront
2. The actual subsidy amount credited, is approved by the National Housing Bank
3. The CLSS is applicable only for affordable housing loans availed by Economically Weaker Sections and Low Income Groups
4. Family income, where family represents husband/wife/unmarried children, should not exceed beyond‚ 6 lakhs p.a.
5. The scheme is applicable only on customers building or purchasing their first homes and the beneficiary family cannot have a previously owned property to their name
6. The carpet area must be within 30 sq. mt. for families with income up to 3 lakhs p.a. and 60 sq. mt. for families with income up to 16 lakhs p.a.
7. The completion time for the construction of the home is 36 months
8. A woman member has to be declared as the owner or co-owner of the property
9. Upon the receipt of the subsidy, the entire amount will be reduced from the effective loan amount at the inception of the tenure
10. The borrower will have to pay off only the adjusted principal amount

To calculate the interest against any loan amount, the central government has also launched its online calculator that can be accessed through PMAY  official site. You can use the link, http://pmaymis.gov.in/EMI_calculator.aspx to get directed to the page and get an estimate of the total amount payable on your loan, after the deduction of the subsidy. For example, according to the scheme, for a desired loan amount of  6 lakhs, over a term period of 36 months, at an interest rate of 13% p.a., the calculator estimates that one can get a subsidy amount of 56,000 (approx).

As it seems, the CLSS can help out several people facing house loan related problems. Supported on remarkable benefits provided by the central government, the Credit Linked Subsidy Scheme is surely here to make the dream of owning a home, come true!

Did You Know?

The CLSS is a central sector scheme, implemented through two central nodal agencies, the National Housing Bank (NHB) and Housing Urban Development Corp (HUDCO). This scheme has encouraged around 185 lending organisations from the housing finance industry to register for the greater cause and meet the demands of the poor for affordable housing options.

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