PMAY Credit Linked Subsidy Scheme | Application Process
PMAY Credit Linked Subsidy Scheme – The Central Government is running the most ambitious housing scheme i.e. Pradhan Mantri Awas Yojana (PMAY) in 2015. The main motive of the government behind launching this scheme is to provide affordable housing for all by the year 2022.
PMAY Credit Linked Subsidy Scheme
Under the Pradhan Mantri Awas Yojana, the Credit-Linked Subsidy Scheme is one of the most talked-about components. Under this scheme, the central government provides subsidy on home loans to the beneficiaries of the scheme.
Details of Credit Linked Subsidy Scheme
Under the Credit-Linked Subsidy Scheme (CLSS), the Central Government provides housing solutions for purchase, construction, improvement/extension of a home.
Under this scheme, people belonging to Economically Weaker Sections (EWS), Lower Income Group (LIG) with a household income of up to Rs. 6 lakh/annum can avail the benefits of subsidy on home loan.
Apart from this, people belonging to Middle Income Group with household income ranging between Rs. 6 lakh to Rs. 18 lakh/annum can also geet the benefits of this scheme.
Eligibility criteria for Credit Linked Subsidy Scheme
- Under this scheme, the loan must be for a property which is located in a city covered under the Pradhan Mantri Awas Yojana (PMAY).
- In order to avail the benefits of the scheme, the beneficiary or any member of his/her family (wife, husband, and unmarried children) must not own a house in the country.
- Beneficiary must not have availed of a benefit under any government housing scheme earlier.
Interest rate subsidy, loan amount for income upto Rs. 12L
Under this scheme, all the people belonging to EWS and LIG having annual income up to Rs. 6L will get an interest rate subsidy of 6.5% on a maximum loan of Rs. 6 Lakh, for a property with a maximum carpet area of 60sqm.
Apart from this, people belonging to Middle Income Group-1 having annual income between Rs. 6-12 lakh will get an interest rate subsidy of 4% on a maximum loan of Rs. 9L, for a property with a maximum carpet area of 90sqm.
Credit Linked Subsidy Scheme – Applying Process
Firstly, apply for a home loan from a lending institution listed under the PM Awas Yojana and ask for a subsidy on the home loan interest rate.
After that, the lending institution will review your application, and if approved it will send it to the Central Nodal Agency.