Research suggests that nearly 78 million people in India do not have a safe and permanent place to live. The country has one of the largest populations of homeless in the world. One of the major reasons for this is the massive gap between the demand and supply for residential units. And, to address this issue and give people fulfil their basic needs of having a shelter, the government of India launched the PMAY (Pradhan Mantri Awas Yojana) initiative in 2015.

The scheme is a part of the ‘Housing for All’ mission, and it aims to provide permanent housing units to all Indian citizens by 2022. Another important aspect of the scheme is the CLSS (Credit Linked Subsidy Scheme), which aims to empower people from all income groups to become homeowners, by offering them monetary aid in the form of a subsidy on home loan interest rate.

To grant the subsidy benefits to eligible beneficiaries, the government has collaborated with various banks and HFCs. If you are looking to apply for a home loan to accomplish your long-cherished dream of being a homeowner, you can apply for CLSS benefits under the Pradhan Mantri Awas Yojana.

However, to get the subsidy on home loan interest under CLSS, you must meet specific eligibility criteria, which are discussed below:

• You or any other member in your family must not own a permanent residence anywhere in India.
• You or any other member in your family must not have received financial aid through any other state or central government affordable housing scheme.
• If you are a married individual, you can apply for the CLSS benefits individually or jointly with your spouse. However, together, you would be eligible for a single subsidy.
• The property you wish to buy must be located in the statutory towns listed in the 2011 census or any other towns notified as statutory towns at a later date.

Apart from the above requirements, you must also meet the income criteria, which is discussed below:

To ensure that every eligible citizen gets maximum CLSS benefits, the government has categorised the beneficiaries based on their annual income; the lower income groups get higher subsidy and vice-versa.

The income groups are

• EWS – Economically Weaker Section
• LIG – Lower Income Group
• MIG-I and II – Middle Income Group

If you apply for the CLSS home interest subsidy benefit, your annual household income must not exceed Rs. 3 lakhs. For applicants belonging to the LIG category, your income must not be more than Rs. 6 lakhs per annum. For MIG I and MIG II, the annual household income limit is Rs. 9 lakhs and Rs. 12 lakhs.

You can use the PMAY calculator to know exactly how much you can save on the total interest payout based on the interest subsidy you get.

Other important thing to know about getting CLSS benefit is that you can get a home loan under PMAY for buying a new home, constructing your home, and also for home renovation and home extension purposes.

Final Word

The CLSS benefit is a boon for all aspiring homeowners; it helps you make home loan affordable and repayment easier