A Short Note on CLSS

The Ministry of Housing and Urban Poverty Alleviation (MoHUPA) launched the Credit Linked Subsidy Scheme (CLSS) in the year 2015. The main aim of launching this project was to provide interest subsidy to existing housing loan subscribers and was launched under Pradhan Mantri Awas Yojana (Urban).

Under the Credit Linked Subsidy Scheme (CLSS Scheme), the individual is provided with interest subsidy on housing loan availed by them. Though it would be available only for urban poor and middle-income group.

Initially, it was launched for Economically weaker section, but later moved to middle-class group too. Some of the beneficiaries of CLSS are-

  • Economically Weaker Section with the annual income of 3 lakhs
  • Lower income group with the income ratio of 3 lakhs to 6 lakhs
  • Middle-income group I between 6 and 12 lakhs
  • Middle-income group II with income between 12 and 18 lakhs

The scheme is being implemented under two central nodal agencies- National Housing Bank (NHB) and Housing Urban Development Corp (HUDCO).

If you fall under MIG 1 and MIG 2, there are certain eligibility criteria like-

  • The family shouldn’t own a pucca house in India
  • Housing loan sanctioned after 1/1/2017 will be eligible for the scheme
  • Maximum tenure of the loan is 20 years
  • The carpet area of the houses being constructed should be 90 square meters and 110 square meters
  • The subsidy will support acquisition and construction of the house

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