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All You Need To Know About Credit Linked Subsidy Scheme

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By Author: Atish Nair
Total Articles: 4
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PMAY includes a component credit linked subsidy scheme (CLSS) which aims housing for not only economically weaker sections of the society but also middle class income groups with subsidy benefits. Let’s know in detail about this scheme.

Given the growth projection for housing in India, Pradhan Mantri Awas Yojana an initiative was started by the Prime Minister to provide affordable houses for the poor dwelling in the slums of the urban areas. This initiative was started under the name “housing for all”. Credit Linked Subsidy Scheme is an interest subsidy scheme under PMAY that caters to affordable home loan for all strata of the society with low EMI.

The subsidy amount varies depending upon the income of the individual. Here is a breakup on the benefits that every income category can avail.

EWS/LIG category - Those households whose annual income is below 6 Lakh and above 3 lakhs are eligible for a maximum benefit of 6.5% interest subsidy. Those households falling in this income group are categorized as Economically Weaker Sections (EWS) and Lower Income Group (LIG). This per cent of interest subsidy is available only if the carpet area of the house is within 60 Sq. metres. The interest subsidy has an upper limit of 6 Lakhs on the loan amount.


MIG 1 Category - All those households whose annual income is above 6 lakhs but below 12 lakhs belong to this category. Beneficiaries belonging to this category are eligible for an interest subsidy of 3% with a cap of upper limit to a maximum amount of 9 lakhs. The subsidy is available only to the carpet area of 160 square meters.

MIG 2 Category - Households with annual income of above 12 lakhs and below 18 lakhs are the beneficiaries for this category. The beneficiaries can get a loan of up to 12 lakhs with the interest subsidy percent as 3%. The carpet area of the house should not increase more than 200 square feet to avail this subsidy.

The Eligibility Criteria For Availing This Subsidy By The Income Groups

• The beneficiaries or any other member of the household should not have any pucca house in their name.

• If a married couple applies for the loan under PMAY, the subsidy benefit will be availed jointly by both the spouses and not individually.

• The beneficiary should not have availed any other benefit of housing from any other government scheme or any other benefit from PMAY.

Who Are The Beneficiaries?

The beneficiaries of this scheme include a family comprising of husband, wife, children. In case of an adult, he or she is considered to be a separate household irrespective whether the individual is married or not.

How To Get This Benefit?

You would require contacting the financial institutions who are covered under the PMAY scheme. Upon finalizing your institution, you would be required to fill up an application form along with the required documents.

Once this process is done the lender would then approach the nodal agency to give you back the subsidy amount in your bank account.

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