What Is Home Loan Subsidy Scheme (CLSS)?

CLSS stands for Credit Linked Subsidy Scheme. The Ministry of Housing and Urban Poverty Alleviation launched CLSS in 2015. Thus, this scheme was launched to provide housing for all. This includes construction, purchase, improvement, extension, etc. for example: low-income groups, middle-income groups and economically weaker groups.

Eligibility For Home Loan Subsidy Scheme

An individual is eligible for home loan subsidy scheme if:

  • The beneficiary or his/her family does not own a Pucca house in any part of India.
  • Married couples are eligible for a single subsidy only (under joint-ownership).
  • The beneficiary or his/her family should not avail (or have) any assistance from the Central Government or any other subsidy under the Pradhan Mantri Awas Yojana Scheme.
  • A family consists a husband/wife and unmarried children only.
  • The loan is sanctioned on (or after) 1st January 2017.
  • An applicant must have an Aadhar Card.

Home Loan Subsidy Scheme Rates

The subsidies on loans available are:

  • Incomes under INR 6,00,000, the interest subsidy is at 6.5%.
  • For incomes between INR 6,00,000 – INR 12,00,000, the interest subsidy is at 4%.
  • For incomes between INR 12,00,000 – INR 18,00,000, the interest subsidy is at 3%.

How To Avail Home Loan Subsidy Scheme?

In conclusion, to apply for home loan subsidy under CLSS, an applicant needs to contact his/her lender or lending bank. The bank has terms and conditions that an applicant needs to fulfill. These include income statements, proof of relationship, existing account details, loan details, etc. Additionally, Aadhar is mandatory as well. If eligible, then a bank will notify the applicant.

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