Union Minister, Venkaiah Naidu has announced the guidelines for the implementation of central government’s CLSS (Credit Linked Subsidy Scheme) for homebuyers in the middle income group (MIG) segment. The scheme will bring down the equated monthly instalments (EMI) by over Rs 2,000 for middle class homebuyers with annual incomes between Rs 6 and 18 lakh. The benefit is a part of the PMAY (Pradhan Mantri Awas Yojna).
This interest subsidy will be provided on home loans for construction or purchase of house with carpet area of 90 square meters by those earning up to Rs 12 lakh per annum and of 110 square meters by those earning up to Rs 18 lakh per year. No processing fee will be charged by banks or housing finance companies from the applicants under CLSS.
Under the scheme, the government has focused on women with greater preference to widows, single working women, backward classes, scheduled castes and tribes, differently abled and transgender people. The centre has allocated Rs 1,000 crore in the year’s Union Budget for CLSS component.
National Housing Bank (NHB) on Wednesday also signed memoranda of understanding with 45 housing finance companies, 15 scheduled banks, 2 regional rural banks, 1 cooperative bank, 4 small finance banks and 3 non-banking finance companies-micro finance institutions for implementation of CLSS(MIG) component of PMAY(Urban). This scheme is not only poor people, but middle class is also on top of PM’s agenda. So, Middle class homebuyers will get more benefits in home loan subsidy scheme.
