Credit Linked Subsidy Scheme
Ministry of Housing and Urban Poverty Alleviation (MOHUPA), a well reputed government organization has introduced Credit Linked Subsidy Scheme (CLSS) under Pradhan Mantri Awas Yojana (PMAY) (URBAN). This CLSS scheme is bringing out for acquisition/ construction/ re purchasing/ improvement of houses to accommodate Lower Income Group (LIG), Middle Income Group (MIG), and economical Weaker Section (EWS). Honorable Prime Minister Mr. Narendra Modi has gradually launched this CLSS scheme in the month of June 2015 to cater interest subsidy on the housing loans or residential units.
National Housing Bank and Housing and Urban Development Corporation has collaborated to execute this Credit Linked Subsidy Scheme 2017 and it also recognized as a Central Sector Scheme. Eligible contenders who wish to be a part of Credit Linked Subsidy Scheme must fill CLSS Application Form in sequential order as procedure to submit it is structured below. On this single platform we have provided we have provided the completer acknowledgement regarding Credit Linked Subsidy Scheme For Housing under PMAY so just roll down this web page which is well equipped by our talented and brilliant team members of recruitmentresult.com.
Credit Linked Subsidy Scheme
Eligibility Criteria for Credit Linked Subsidy Scheme 2017:
- All the candidates must know about eligibility criteria as given here for Credit Linked Subsidy Scheme. The beneficiary family should not own a pucca house in his/her or in the name of any member of his/ her family in any part of India.
- If there will be any married couple, either of the spouse or both together in joint ownership they are also e eligible for a single subsidy.
- Under any housing scheme from Government of India as well as any benefit under any scheme in PMAY, the beneficiary family should not have availed of central assistance.
Know More About: Pradhan Mantri Awas Yojana
Under CLSS Scheme, Eligible Customers:
- EWS: Annual household income up to 3 lacks
- LIG: Annual household income above 3 lack and up to 6 lacks.
- The beneficiary family should comprise husband, wife, unmarried sons and /or unmarried daughters.
- Aadhar number(s) of the beneficiary family are mandatory for MIG category.
- In case of married couple, either of the spouse or both together in joint ownership will be eligible for a single subsidy.
- Or any other as per the norms of government.
Who is Beneficiary for CLSS Scheme under PMAY?
Individuals must know about Beneficiary as the Beneficiary family will comprise husband, wife and unmarried children. (An adult earning member irrespective of marital status can be treated as a separate household in MIG category)
Coverage for CLSS URBAN Scheme:
All statutory towns as per Census 2011 and towns’ notified subsequently, including planning area as notified with respect to statutory town.
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|CLSS Scheme Type||Eligibility Household Income ( Rs.)||Carpet Area-Max (sqm)||Interest Subsidy (%)||Subsidy calculated on a max loan of||Loan Purpose||Validity of scheme||Max Subsidy (Rs.)||Woman Ownership|
|EWS and LIG||Upto Rs. 6,00,000||60 sqm||6.50 %||Rs. 6,00,000||Purchase/Self Construction/Extension||31/03/2022||2.67 Lacs||Yes *|
|MIG 1 **||Rs. 6,00,001 to Rs. 12,00,000||90 sqm||4.00 %||Rs. 9,00,000||Purchase/Self Construction||31/12/2017||2.35 Lacs||Not Mandatory|
|MIG 2 **||Rs. 12,00,001 to Rs. 18,00,000||110 sqm||3.00 %||Rs. 12,00,000||Purchase/Self Construction||31/12/2017||2.30 Lacs||Not Mandatory|
- woman ownership is not compulsory for construction / extension for CLSS under PMAY (URBAN) for LIG/MIG
- ** On/ Or After 01-1-2017, loan should be approved for MIG – 1 & 2
- For MIG category Aadhar number(s) of the beneficiary family are compulsory.
- Interest subsidy will be presented for maximum loan tenure of 20 yrs or the loan tenure whichever is lower.
- Through HDFC resulting in reduced effective housing loan and Equated Monthly Installment (EMI), the interest subsidy will be credited upfront to the loan account of beneficiaries.
- Net Present Value or we can say NPV of the interest subsidy will be calculated at a discount rate of 9 %.
- The further loan beyond the specified limits, if any to be at non-subsidized rate.
- There is no cap on the loan amount or the cost of the property.
Also Check: Pradhan Mantri Garib Kalyan Yojana
Key Highlights of CLSS Scheme 2017:
- EMI for MIG beneficiaries will come down by over Rs.2,000 per month, says NHB Chief
- Loan tenure of CLSS for EWS and LIG also increased to 20 years from 15 years to enable easy repayment
- Housing for All mission now covers people with income of up to Rs.18 lakh per year in urban areas
- 70 Lending Institutions sign MoUs with National Housing Bank for implementation of CLSSMIG
- Interest subsidy of 4% on housing loans of up to Rs.9.00 lakhs of those with an income of Rs.12.00 lakh per year
- Interest Subsidy of 3% on housing loans of up to Rs.12.00 lakh of those earning Rs.18.00 lakh per year.
- No processing fee will be charged by PLIs from the applicants under CLSS.
How Is Interest Subsidy Calculated for CLSS LIG/MIG Scheme?
Individuals must know that the working of the scheme is merely different from what you would expect. It is NOT that you pay slighter interest every month on the subsidized loan portion while the Government bridges the shortage. According to the scheme, through nodal agencies of Government, the govt. (NHB and HUDCO) will transfer the subsidy amount to your home loan account directly. Then the subsidy will be moved to your account truthful. And after that is will successfully reduce your home loan amount.
Due to subsidy scheme, the interest savings is discounted at flat rate of 9% p.a. to calculate upfront subsidy for Credit Linked Subsidy Scheme. If the loan tenure is less than 20 years (increased from 15 years), then the actual loan tenure is considered to arrive at interest savings. However, if the loan tenure is more than 20 years, the loan tenure of 20 years is measured for the purpose of calculation of interest rate subsidy. Therefore, to calculate the subsidy amount, you need to do the following.
- First of all Calculate EMI for subsidized principal (Rs 6 lacs, 9 lacs or 12 lacs as the case may be)
- After that use the interest rate subsidy (6.5%, 4% or 3% as the case may be) as rate of interest
- For tenure, use lower of actual tenure or 20 years
- Calculate the interest portion of the each EMI installment.
- Discount the interest savings at 9% p.a. to present to arrive at the subsidy amount.
- The interest savings have to be discounted at a rate of 9% p.a. This is irrespective of the home loan interest rate.
Check the PM Awas Yojana Loan Scheme for MIG – Interest Rates, Subsidy & EMI:
|Particulars||MIG – 1||MIG – 2|
|Household income per annum||12 Lakh||18 Lakh|
|Ineterst Subsidy (per annum)||4%||3%|
|Maximum loan tenure in years||20||20|
|Eligible loan anount for interest subsidy under CLSS for MIG||9 Lakh||12 Lakh|
|Discount rate for Net Present Value (9%) calculation of interest subsidy||9%||9%|
|Maximum interest subsidy||2.35 Lakh||2.3 Lakh|
|Dwelling unit maximum carpet area||90 Sq. Mt.||110 Sq. Mt.|
|Monthly EMI @ 8.65% without interest subsidy||Rs. 7,894||Rs. 10,528|
|Monthly EMI @ 8.65% with interest subsidy||Rs. 5,834||Rs. 8,509|
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Some Important features of PMAY Credit Linked Subsidy Scheme for MIG:
|Sr .No.||Details||MIG I||MIG II|
|1||Household Annual Income (Rs.)|
|2||Income Proof for Claiming Subsidy||Self Declaration|
|3||Property Carpet Area (sq.m.) Upto||90||110|
|4||Property Location||All Statutory Towns as per Census 2011 and towns notified subsequently|
|5||Applicability of No Pucca House||Yes|
|7||Due Diligence Process||As per the process of the Primary Lending Institution|
|8||Eligible Loan Amount||As per the policy applied by the Primary Lending Institution|
|9||Identity Proof||Aadhaar No.|
|10||Housing Loan Sanction and Disbursement Period|
|11||Interest Subsidy Eligibility|
|i.||Loan Amount (Rs.) Min.||0||0|
|ii.||Loan Amount (Rs.) Max.||9,00,000||12,00,000|
|iii.||Loan Tenure (Years) Max.||20||20|
|iv.||Interest Subsidy (% p.a.)||4.00||3.00|
|v.||NPV Discount Rate (%)||9.00||9.00|
|vi.||Max. Interest Subsidy Amount (Rs.)||2,35,068||2,30,156|
|12||Loan Category at the time of crediting the subsidy||Standard Asset|
|13||Lumpsum amount paid per sanctioned Housing Loan application in lieu of processing fee (Rs.)||2,000||2,000|
|14||Quality of House/Flat Construction||National Building Code, BIS Codes and as per NDMA Guidelines adopted|
|15||Approvals for the Building Design||Compulsory|
|16||Basic Civic Infrastructure (water, sanitation, sewerage, road, electricity etc.)||Compulsory|
|17||Monitoring and Reporting the Completion of Property Construction||Responsibility of the Primary Lending Institution|
|18||Default Repayment of Loan||Recover and Pay back subsidy to CNA on proportionate basis|
|19||Data Submission & Accuracy, and Record Keeping & Maintenance||Responsibility of the Primary Lending Institution|
Applying Procedure for Credit Linked Subsidy LIG/MIG Scheme:
Work Flow of Circle Office:
User Login Process:
Apply for Credit Linked Subsidy Scheme:
Once you press the left menu “Apply for subsidy” link button indicated by oval sign then the following screen appears.
Before striking “Press to fill application full details” tab, you need to fill all required and compulsory details which are clearly given by red star mark to apply for subsidy as indicated by oval sign.
- Now you are required to fill all asked details in the blank boxes indicated with (*) mark and press on Step-1 Save applicant identification detail button for save tab data.
- After pressing “View/Modify Partially Saved Application” tab a new page will be displayed with various information’s check it carefully.
- By pressing “View Forwarded Application to Nodal Agency” new window will be appeared.
- When you will hit the “Search application status” tab at login page, this will take you on new page. Now candidates need to search application status by entering required information.
- In the last step you need to logout the form by pressing Logout link as indicated by the oval sign in the following screen.
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