One of the flagship initiatives of the Government of India to promote affordable housing is the Pradhan Mantri Awas Yojana (PMAY). A notable component of PMAY is the Credit Linked Subsidy Scheme (CLSS), designed to make home loans more accessible to various segments of society. The discussion today predominantly focuses on the PMAY CLSS program - its eligibility, process of applying, and potential benefits. Alongside, we shall also highlight the special features of Bajaj Finserv Home Loan, a reputed institution dealing with home loans.
What is the CLSS scheme under PMAY?
The Credit Linked Subsidy Scheme (CLSS) under PMAY aims at providing affordable housing to all by March 2022. The scheme offers an interest subsidy on the home loan amount to the eligible borrowers. These subsidies vary based on the income category that the borrower falls into - Economically Weaker Section (EWS), Lower Income Group (LIG), and Middle-Income Group (MIG I & II).
Eligibility criteria for CLSS under PMAY
The broad conditions to be eligible for CLSS subsidy entail the following criteria.
- The beneficiary family should not own a pucca house in any part of India.
- In the case of a married couple, either of the spouses or both together in joint ownership will be eligible for a single subsidy.
- The beneficiary family should not have availed any central assistance under any housing scheme from the Government of India.
Income criteria for availing CLSS subsidy
The CLSS subsidy primarily depends on the income group of the borrower. Here are the broad categories:
- Economically Weaker Section (EWS) and Lower Income Group (LIG): The annual household income should be between Rs. 3 lakh to Rs. 6 lakh.
- Middle-Income Group I (MIG I): The annual household income should be between Rs. 6 lakh to Rs. 12 lakh.
- Middle-Income Group II (MIG II): The annual household income should be between Rs. 12 lakh to Rs. 18 lakh.
PMAY CLSS eligibility criteria for CLSS subsidy
The eligibility criteria differ slightly from the CLSS component of PMAY. Firstly, the category of Middle-Income Group (consisting of MIG I & MIG II) have been added to the purview of the scheme. Other primary considerations involve the carpet area and the location of the property alongside the general eligibility conditions of not owning a pucca house and not having availed of any similar governmental subsidy.
Documentation required for CLSS application
The documents usually required for applying for CLSS subsidy include:
- Identity proof.
- Address proof.
- Income proof.
- Property papers.
- Affidavit of the first property ownership.
- Consent for using Aadhaar to check previous benefits availed under governmental schemes.
Process of applying for CLSS subsidy
Initially, you need to approach a lending institution (like Bajaj Finserv) eligible to facilitate CLSS. Next, on your application for a housing loan indicating desire to avail CLSS, the lender will conduct due diligence to assess your eligibility. Post successful assessment, the lender will submit a claim for the subsidy amount to the nodal agencies - National Housing Bank or Housing and Urban Development Corporation. Upon verification by the agency, the subsidy gets sanctioned to your home loan account, resulting in a reduced loan outstanding and lower EMIs.
Steps involved in availing CLSS subsidy
- Apply for a housing loan with an eligible lending institution.
- Indicate your desire to avail of the CLSS benefit.
- Ensure you meet the eligibility criteria for the scheme.
- Submit the necessary documentation.
- The lender verifies your eligibility and applies for the subsidy on your behalf.
- Upon approval, the subsidy is directly credited to your loan account, resulting in reduced EMIs.
Benefits of CLSS subsidy under PMAY
The primary benefit of CLSS is the substantial reduction in the net loan liability and lower EMIs, making homeownership more affordable for the lower and middle-income classes. The interest subsidy ranges from 3% to 6.5%, depending on the income category.
Affordable housing with Bajaj Finserv Home Loan
In the home financing sector, Bajaj Finance stands as a beacon of customer-centric lending. The features encapsulating quick processing, flexible repayment options, top-up loans, online loan management and not to overlook, their easy accessibility make them a preferred choice for home loans. And with the PMAY CLSS scheme available through Bajaj Finance, it only further strengthens the affordability aspect for the buyers from economically vulnerable sections.
In conclusion, with the PMAY CLSS scheme, the dream of owning a home becomes affordable and attainable. With robust support from institutions like Bajaj Finance, the journey to homeownership becomes smooth, guided, and hassle-free.
