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How CLSS Makes Housing Affordable for the Middle Class

  • Highlights

  • Middle income group is divided into MIG 1 and MIG 2

  • Maximum interest subsidy for MIG 1 is Rs.2.35 lakh

  • Maximum interest subsidy for MIG 2 is Rs.2.30 lakh

  • Aadhaar card is mandatory to avail PMAY schemes

The Pradhan Mantri Awas Yojana has created a way for you to become a homeowner on more affordable terms by introducing CLSS on home loans. Considering that the middle-class population in India comprises nearly 300 million people, this scheme caters to financial standing and aspirations of this segment perfectly. Here is how the Credit Link Subsidy Scheme (CLSS) is making housing affordable for you.

Amount of subsidy

The middle-income group has been divided into MIG 1 and MIG 2 categories. The MIG 1 category comprises households that have an annual household income of Rs.6 lakh–Rs.12 lakh. The MIG 2 category consists of households whose annual income is between Rs.12 lakh–Rs.18 lakh. MIG 1 can avail a loan of up to Rs.9 lakh with a subsidy of 4% while MIG 2 can avail a loan up to Rs.12 lakh with a subsidy of 3%.

The maximum interest subsidy for MIG 1 on a loan of Rs.9 lakh is Rs.2.35 lakh whereas the maximum subsidy for MIG 2 on a loan of Rs.12 lakh is Rs.2.30 lakh. This is bound to reduce home loan interest rates significantly for you based on the category under which you avail the PMAY scheme.
Once you determine the category applicable for your income, you can easily apply for a Home Loan with lenders like Bajaj Finserv to avail facilities of PMAY and gain from nominal interest rates that further ease your repayment.

Six Things to Remember Before Taking a Home Loan

Size of unit and its cost

Your home’s unit size is calculated on the carpet area. This includes space taken up by internal wall partitions, not counting external walls. The minimum carpet area for MIG 1 is 90 square meters while that of MIG 2 is 110 square meters. The maximum carpet area for MIG 1 is 968.5 square feet whereas the maximum carpet area for MIG 2 is 1,184 square feet.

Eligibility criteria and how to apply

Here are the Pradhan Mantri Awas Yojana eligibility criteria for MIG in order to apply for affordable housing with CLSS:
- This scheme is available only for those households who are buying their first home.
- This scheme is not available for you if you have taken housing assistance from the state or government before.
- Adult female co-ownership is mandatory to avail the scheme, except when there is no female head or family member.
- Location of the property must fall under the listing of approved towns and cities as per 2011 census.
- Aadhaar card is mandatory for application and processing of your application.

Here is how you can apply for CLSS to obtain affordable housing

Your family can apply directly through the primary lending institutions, local agencies or ULB (Urban Local Bodies) approved by the government.


So, choose CLSS to buy a home or to make additions like adding a room, extending your existing home structure or undertake any renovation project by availing a home loan under the scheme.

Bajaj Finserv brings you pre-approved offers for personal loans, home loan, business loans and a host of other financial products. Not only does this simplify the process of availing financing, but also helps you save on time. All you have to do is share a few basic details and check out your pre-approved offer.
Need instant financing? Think it. Done with Bajaj Finserv.

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