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Credit Linked Subsidy

Beneficiaries of Economically Weaker Section (EWS)/Low Income Group (LIG), Middle Income Group (MIG)-I and Middle Income Group (MIG)-II seeking housing loans from Banks, Housing Finance Companies and other such institutions for acquiring, new construction or enhancement* of houses are eligible for an interest subsidy of 6.5%, 4% and 3% on loan amount upto Rs. 6 Lakh, Rs. 9 Lakh and Rs. 12 Lakh respectively. The Ministry has designated Housing and Urban Development Corporation (HUDCO), National Housing Bank (NHB) and State Bank of India (SBI) as Central Nodal Agencies (CNAs) to channelize this subsidy to the beneficiaries through lending institutions and for monitoring the progress. The scheme for MIG category has been extended upto 31st March, 2021. The CLAP portal has significantly contributed towards streamlining processes under CLSS vertical which has also facilitated the Ministry in reducing in grievances.

  • A Centrally Sponsored Scheme (CSS)
  • Interest subvention on home loans taken by eligible urban poor (EWS/LIG) for acquisition, construction or enhancement of house
  • For the first time, Middle Income Group (MIG) has been included for a housing scheme in the country.
  • Validity of scheme till 31st March 2020

Particulars

EWS

LIG

MIG I

MIG II

Household Income (Rs.)

Upto 3 Lakh

3-6 Lakh

6-12 lakh

12-18 Lakh

Carpet Area in sqm

 30

 60

 160

 200

Interest Subsidy (% p.a.)

6.5%

4.0%

3.0%

Maximum Loan Tenure

20 Years

Eligible Loan Amount (Rs)

 6,00,000/-

9,00,000/-

12,00,000/-

Discounted NPV Rate

 9%

Upfront amount for Subsidy (Rs.) for a 20 Year Loan

 2,67,280/-

 2,35,068/-

 2,30,156/-

Approx. monthly savings @ Loan Interest of 10%

2,500/-

 2,250/-

2,200/-


More Information : Credit Linked Subsidy (CLSS)