Credit Linked Subsidy Scheme (CLSS) for Middle Income Group (MIG): Affordable Housing Benefits

That goes for the Credit Linked Subsidy Scheme under Pradhan Mantri Awas Yojana – Urban or PMAY-U. Under the program, a beneficiary would receive interest subsidy while buying or developing a house to help out the Middle Income Group. Fast rate of urbanization in India should see demand jump for affordable housing in urban India.

This scheme was to reduce the burden of middle-income families in accessing home loans, through subsidized interest rates on housing loans from banks, housing finance companies, and other financial institutions.

Key Features of the Scheme

All statutory towns and urban areas listed in the 2011 Census will be included in the plan, along with any towns that have been designated since then, such as Development Authorities and Special Area Development Authorities.
Offering interest subsidies on housing loans for home building, acquisition, or buyback is the goal.

Eligibility Criteria

Income Categories:
- MIG-1: Families earning between ₹6,00,001 and ₹12,00,000 per year.
  MIG-2: Families earning between ₹12,000,000 and ₹18,000,000 per year.
Additional Criteria:
- The family must not own a pucca house anywhere in India.
- The applicant and family should consist of husband, wife, and unmarried children.
- The applicant must not have received housing benefits under other Government schemes.
Special Considerations:
- Preference may be given to women, widows, single working women, SC/ST/OBC, persons with disabilities, and transgender persons.

Benefits

MIG-1:
- Income range per year: ₹6,00,001 to ₹12,00,000
- Interest subsidy: 4% for loans up to ₹9,000,000 with a maximum 20-year credit term.
- Carpet Size: 160 square meters
MIG-2:
- Income range per year: ₹12,00,001 to ₹18,00,000
- Interest subsidy: 3% for loans up to ₹12,000,000 with a maximum 20-year credit term.
- Area Carpeted: 200 sqm
The interest subsidy will reduce the overall Equated Monthly Installment (EMI) for the beneficiary by lowering the effective loan amount.
The subsidy is credited upfront to the loan account, resulting in a reduced principal amount.

Application Process

Offline:
- The applicant can apply through participating banks or housing finance companies.
- Go to the office of the lender of your choice, pick up the application, and complete it.
- filled-out form and the necessary paperwork.
- The loan amount will be deposited into the applicant’s bank account after verification.
Track Your Application:
- Visit the CLSS-CLAP Portal.
- Enter the Application ID and OTP received via SMS.
- Check the status of your application and subsidy disbursements.

Documents Required

Aadhaar Card (for identity verification).
PAN Card.
Proof of Income (Salary Slips, IT Returns).
Proof of Residence (Aadhaar, Voter ID, etc.).
Bank Account Details.
Property Documents (if available).
Self-Declaration Affidavit (that the applicant does not own a pucca house).

Frequently Asked Questions (FAQs)

What is the interest subsidy available in the scheme?
MIG-1 : 4% interest subsidy for loans of up to ₹9,00,000
MIG-2 : 3% interest subsidy for loans of up to ₹12,00,000
How does the subsidy credit occur?
Interest subsidy is credited upfront to the loan account. That automatically decreases the effective loan amount and results in lower EMIs.
Are unmarried adult earners eligible for CLSS?
Yes, an unmarried earning adult can avail MIG-1 or MIG-2 under the scheme if he or she is eligible based on income.
Is there an upper limit on the cost of the property for which the loan can be availed?
Yes, the subsidy is applicable only up to 160 sq.m for MIG-1 and 200 sq.m for MIG-2.
Can NRIs apply for this scheme?
No, NRIs are not eligible for CLSS for MIG.
What is the maximum tenure for the loan under this scheme?
The maximum loan tenure is 20 years.
What if the construction is stalled after receiving the subsidy?
If the subsidy has been disbursed and construction is stalled, then the applicant should notify the PLI and then the adjustment would be done.