In June 2015, our Honourable Prime Minister launched a scheme called the Pradhan Mantri Aawas Yojana (PMAY). The Scheme envisions Housing for all by the year 2022.
What is CLSS?
CLSS under PMAY is a scheme that makes the home loan affordable, as the subsidy provided on the interest component reduces the EMI on the housing loan. Under CLSS, beneficiaries of Economically Weaker Section (EWS) and Low-Income Group (LIG) can seek housing loans from lending institutions for acquisition/construction of house and enhancement to existing dwellings as incremental housing. The credit linked subsidy will be available only for loan amount upto Rs 6 lakhs and such loans would be eligible for an interest subsidy at the rate of 6.5 % for tenure of 20 years or during tenure of loan whichever is lower. The Net Present Value (NPV) of the interest subsidy will be calculated at a discount rate of 9%. Any additional loan amount beyond Rs. 6 lakhs will be at non-subsidized rate.