Government has cleared Loan Facility scheme also known as credit link subsidy scheme for Middle class Income group (MIG). The guideline to avail loan under Pradhan Mantri Awas Yojana has been cleared by Union Minister Venkaiah Naidu on Wednesday. So there a cleared guideline for MIG category home buyers. MIG Home buyers after this clarification will have relax under monthly equated monthly installment (EMI) by over Rs 2,000.
loan subsidy under Pradhan Mantri Awas Yojna for Middle Class Home buyers clearified
Note that after this clarification home buyers of MIG category ( with annual incomes of above Rs 6 lakh and up to Rs 18 lakh per year) will be eligible to apply for this loan scheme. They will recieve interest subsidy on housing loans taken in 2017 under Pradhan Mantri Awas Yojna (Urban).
Description of Interest Subsidy
The interest subsidy for MIG group will be provided on –
Home Loan for construction
- Home loan for Purchase of house will carpet area of 90 square meters to those earning upto Rs 12 Lakh per annul.
- Home loan for Purchase of house will carpet area of 100 square meters to those earning upto Rs 18 Lakh per annul.
Note that – No processing fee will be charged by banks or housing finance companies from the applicants under CLSS.
About CLSS Scheme
The extension for CLSS to the middle class people was announced by Prime Minister Modi ji on 31 of December,The extension was announced with an offer of
- interest subsidy of 4% on housing loans of up to Rs 9 lakh of those with an income of Rs 12 lakh per year
- interest subsidy of 3% on home loans of up to Rs 12 lakh of those earning Rs 18 lakh per year.
Note that – Housing loans above Rs 9 lakh and Rs 12 lakh will be at non-subsidised rates.
How EMI will be cut down after extension
After extension of CLSS the EMI’s will be cut down by the following rates.
- interest subsidy of 4% under the scheme will bring down EMI by Rs 2,062 per month on a housing loan of Rs 9 lakh
- interest subsidy of 3% will reduce the monthly outgo by Rs 2,019 on Rs 12 lakh loan, considering normal housing loan interest rate of 8.65%.
Extension of CLSS Starting date – January 1, 2017
Also the tenure of loan can be a maximum of 20 years or that preferred by the home buyer.
Which category is in Preference
Women with overriding preference to widows, single working women, people from scheduled castes and scheduled tribes, backward classes, differently abled and transgender people have been given preference under this scheme.
Check the Nodal Agencies selected under CLSS extension for MIG/EWS/HIG
- NHB and Housing and Urban Development Corporation (HUDCO) have been designated as central nodal agencies for implementation of CLSS for both MIG and EWS/LIG .
- The work of these nodalreimburse interest subsidy to primary lending institutions.
The CLSS component of PMAY(Urban), launched in June 2015, was already applicable for the economically weaker sections (EWS) and low income group (LIG) with income of Rs 3 lakh and Rs 6 lakh per year, respectively. People in this group are getting interest subsidy of 6.5% on a home loan of up to Rs 6 lakh.