Who does not want to own his/her dream home? It is a lifelong dream of many people to own a dream home and nothing gives more satisfaction than resting in their homes.
However, not all are lucky to own a home during the course of their lives due to a lack of funds. However, with the introduction of the Pradhan Mantri Awas Yojana (PM) which was launched by the Indian Government in 2015, things have changed.
Yes, if you are eligible for the Pradhan Mantri Awas Yojana (MAY), you can get to enjoy living in one of the 2 crores homes that are to be built by the Government.
Even if you fail to make the cut to reside in those homes, you can still cheer up as there is also a credit linked subsidy scheme and save on home loan subsidies.
Yes, depending on your income level, you can avail some interest subsidy of 6.5% for a period of up to 15 years and pay a lower EMI to save money.
The CLSS Scheme for ESW and LIG
This section of the CLSS scheme is created for the Economically weaker section and Lower income group. It covers the urban poor populace with an income of Rs.3 lakh and Rs.6 lakh. The loan tenor can be up to 20 years and has a smooth repayment process. The beneficiary will also get the benefits in the form of interest rebate of Rs.2.3 lakh.
The CLSS scheme for MIG
Under this scheme designed for people in the Middle-income group category earning the yearly income between Rs.6 lakh and Rs.18 lakh can enjoy interest discount. The facility is available for availing a home loan for building/buying first home under the Pradhan Mantri Awas Yojana (PM). The maximum loan duration that one can enjoy is up to 20 years. On the other hand, people with an annual income of Rs.12 lakh and Rs.18 lakh can avail an interest subsidy on loans for acquisition/construction of a home. The carpet area for the same needs to be of 90 square meters and 110 square meters.
People taking home an annual income of up to Rs.12 lakh
The people coming in this section can enjoy an interest subsidy of 4% on loan figure of up to Rs. 9 lakh. The taken loan after Rs.9 lakh gets charged at the standard home loan interest rate.
People earning an income of Rs.18 lakh yearly
The candidates willing to enjoy the CLSS scheme benefits and taking home an income of Rs.18 lakh can enjoy an interest rebate of 3% on a loan figure of up to Rs.12 lakh. The loan amount above Rs.9 lakh is charged at the standard home loan interest rate.
Things to consider when applying for the CLSS scheme
The CLSS scheme is applicable only when you can take a home loan to construct or buy a brand new home
The beneficiary gets CLSS scheme benefits only when he does not have a pucca house either in his/her name or in the name of any family member anywhere in India
If you have already availed benefits under any scheme that offered Central Government’s assistance, then you won’t get to enjoy the CLSS scheme benefits.
The Bottom Line
All said and done, the CLSS scheme is a perfect way for the poorer populace to shift into a house of their own while enjoying the interest subsidy on the home loan. Consult with your lender today and embark on the way to get your own dream home!