The Pradhan Mantri Awas Yojana introduced by the Government of India targets to provide housing for all by March, 2022. CLSS or Credit Linked Subsidy Scheme for LIG/EWS or MIG (I&II) is a significant vertical of PMAY. The other three components are In Situ Slum Redevelopment, Beneficiary Led Construction and Affordable Housing in Partnership.
The CLSS scheme extends financial assistance, including interest subsidy on home loan to eligible individuals via various financial organisations in India.
The government with this programme promotes the increase of credit flow in financial institutions towards housing requirements. The National Housing Board and the Housing and Urban Development Corporation are the central nodal agencies who have received the authorisation to take this project forward.
Borrowers willing to avail a Home Loan from lending organisations including Bajaj Finserv under PMAY scheme can enjoy concessions on interest rates.
The interest subsidy on home loan by the government of India is available for 3 income groups – EWS, LIG, and MIG. The features of this scheme can be divided according to the financial backgrounds of households.
For applicants belonging to the EWS or Economically Weaker Section:
For applicants falling under the LIG or Lower Income Group:
Applicants from the EWS and LIG categories can avail a maximum home loan subsidy of up to Rs. 2.67 Lakh.
For those falling under the Medium Income Group or MIG I:
For individuals belonging to the MIG II category:
Eligible candidates from MIG I & MIG II categories can avail a maximum subsidy on home loan interest of up to Rs. 2.35 Lakh.
Note: Carpet area is the actual area within the walls where you can lay a carpet. It is excluding the inner wall’s thickness and common spaces like stairs, lobby, etc.
Apart from the annual income, applicants must fulfil the following requirements:
Under this PMAY CLSS scheme, the maximum tenor of a home loan must be 20 years.
Besides the categories mentioned above, the government has now extended the subsidy benefits to the ignored sections of the society, including transgender individuals and widows.
Suppose you avail a loan of Rs. 32 Lakh for a repayment tenor of 20 years, and you come under the MIG II category. Usually, the EMIs per month stand at around Rs. 31,000.
Now, the loan amount eligible for the interest subsidy is Rs. 12 Lakh. If you calculate your EMIs with a 3% rate of subsidy based on the Excel PMT formula, the EMIs come down to around Rs. 7,000 per month.
Use the online Pradhan Mantri Awas Yojana Calculator offered by Bajaj Finserv to check your subsidy amount and the category you fall into instantly. You only need to enter the following details – repayment tenor, home loan amount, annual income of your household and carpet area. Also, confirm that it’s your 1st pucca house to be eligible.
Eligible applicants can directly apply for a home loan under CLSS with PLIs or Prime Lending Institutions. PLIs are the financial institutions including NBFCs, cooperative banks, regional rural banks, and others who have partnered with the central nodal agencies to offer subsidised rates on housing loans. Close to 70 financing organisations collaborated with NHB and HUDCO.
Steps to apply:
Contact Bajaj Finserv and detail your intentions of taking the loan. Ensure to meet the eligibility criteria for CLSS benefits.
You will receive a loan subsidy application. Fill it with accurate details as required.
Once done, submit the application form along with all the documents required. Make sure to submit updated papers.
Get your loan amount disbursed in your account post the verification of documents.
Bajaj Finserv shall next approach the nodal agencies to process your application and reimburse the subsided funds in your loan account.
Note that no lending institution can charge any additional fees to sanction a home loan under CLSS.
Bajaj Finserv brings the best Home Loan customised to meet the property buying or construction needs of borrowers. Get interest subsidy on first Home Loan and save huge amounts up to Rs. 2.67 Lakh. As an earning member of the family, get this affordable housing loan to own a property in your name.
Bajaj Finserv also offers high-value financing for both salaried and self-employed individuals. Salaried applicants can apply for a loan starting from Rs. 10 Lakh up to Rs. 3.5 Crore. Self-employed borrowers can avail up to Rs. 5 Crore.
Meet the following eligibility criteria for faster approval:
Check the complete eligibility criteria for Home Loan for minimum salary requirements as per state of residing. Once you qualify, apply for this Mortgage Loan and avail exclusive benefits such as:
Furthermore, you get the benefit of easy Home Loan Balance Transfer facility and Top-Up Loans of up to 50% of the sanctioned loan amount. Top-Up Loan is an additional credit which you can avail to invest in related expenses like purchasing furniture, extending a portion, etc.
Note that, if you have already received an interest subsidy on existing home loan, you cannot claim another subsidy when availing the balance transfer facility for better rates.
Bajaj Finserv levies one of the most affordable Home Loan interest rates along with nominal associated charges and no hidden fees. You can check your monthly outflows towards the loan repayment using our Home Loan EMI Calculator.
It is an online calculator which computes your loan EMIs, total payment including principal and interest and total payable interest instantly. Simply provide the basic details – loan amount, your preferred tenor and the rate of interest. It functions on the mathematical formula EMI = [P x R x (1+R)^N]/[(1+R)^N-1].
This online EMI calculator helps you plan your repayment strategically and manage your finances better. Also, you can evaluate if the preferred loan amount is feasible for you, considering your financial capabilities.
According to recent reports, as on March 31st, 2019, the government of India has disbursed a subsidised amount of more than Rs. 12,000 Crore under its Credit Linked Subsidy Scheme across the nation.
So, apply for a Home Loan with Bajaj Finserv today for the best features and benefits and get your first house effortlessly.
PMAY subsidy scheme for MIG I & II category is not extended by regulatory. Category wise scheme validity is mentioned below:
1.EWS & LIG category is valid up to 31st March 2022
2.MIG I & MIG II category was valid up to 31st March 2021