Readers ask: What Is Credit Linked Subsidy?


What is the meaning of credit linked subsidy?

The Credit Linked Subsidy Scheme (CLSS) is a benefit under the Pradhan Mantri Awas Yojana which focuses on helping the Middle Income Groups, Economically Weaker Sections, and Lower-Income Groups in India by bringing down their housing loan EMIs by over Rs. 2,000 per month by offering an interest subsidy.

Who is eligible for credit linked subsidy scheme?

Beneficiaries of Economically Weaker section (EWS) and Low Income Group (LIG) seeking housing loans from Banks, Housing Finance Companies and other such institutions would be eligible for an interest subsidy at the rate of 6.5% for a tenure of 20* years or during tenure of loan whichever is lower.

How credit linked subsidy scheme works?

Under this scheme, individuals purchasing a new affordable home can get interest concessions of 3-4 per cent on the amount borrowed, subject to some conditions. The subsidy is calculated as the present value of interest savings on home loans over the entire tenure of the loan, capped at a maximum of ₹2.35 lakh.

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What is CLSS in banking?

Credit Linked Subsidy Scheme ( CLSS ) is one of the components under the Pradhan Mantri Awas Yojana (PMAY) wherein the Central Government offers interest subsidy to eligible customers who meet the following criteria.

How do I know if my PMAY is approved?

Tracking your Pradhan Mantri Awas Yojana application status

  1. Visit, the official website of PMAY scheme.
  2. Go the option titled ‘Citizen Assessment’ on the task bar.
  3. Select the option ‘Track your Assessment status’ form the drop down menu under Citizen Assessment.

How are subsidies calculated?

The interest subsidy amount will not be the differential of interest amount (of actual and subsided rate) but will be the net present value (NPV) of the interest subsidy amount. It is to be calculated at a discount rate of 9 per cent. Thereafter, use the Fx function in an excel sheet to arrive at the NPV.

How do I apply for a subsidy loan?

The process to claim PMAY interest subsidy benefit is given as follows:

  1. After your home loan is disbursed, the lender will send the required details to the National Housing Bank (NHB) for data validation and other checks.
  2. NHB after due diligence approves the subsidy to eligible borrowers.

How can I check my home loan subsidy?

PMAY Status Check

  1. To track PMAY Status, check out the official website of Pradhan Mantri Awas Yojana.
  2. On the official website, check the status ‘By Mobile Number and Father’s Name’ or ‘By Assessment ID’.
  3. Check PMAY Status by dialing the toll-free numbers 1800 11 3377, 1800 11 3388 and 1800 11 6163.
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How much time does it take for PMAY subsidy?

How much time it takes to get PMAY subsidy? It takes 2-6 months to get interest subsidy in your loan account.

What is credit subsidy?

Credit Linked Subsidy Scheme (CLSS) is a component of PMAY under which, not only economically weaker sections, but also middle-income groups can avail of home loans at reduced EMIs.

Is PMAY subsidy deducted from principal?

Wondering how to apply for a home loan under the PMAY scheme? This essentially means that your loan amount reduces by INR 2.30 lakh as the subsidy amount is deducted from the principal loan amount. You have to pay EMI on the balance amount of INR 9.70 lakh at the agreed upon interest rate.

Who is eligible for CLSS scheme?

Pradhan Mantri Awas Yojana Eligibility Criteria

Particular CLSS – MIG I CLSS – MIG II
Household Income (P.A) 6-12 Lakhs 12-18 Lakhs
Dwelling Unit Carpet Area Upto 160 Sq mt Upto 200 Sq mt
Requirement of NOC from State govt Not required Not required
Tenor for calculating subsidy amount 20 Years 20 Years

What does CLSS mean?


Acronym Definition
CLSS Closed Center Load Sensing System
CLSS Certified Lodging Security Supervisor
CLSS Clandestine Laboratory Seizure System (US DOJ)
CLSS Combat Logistics Support System

What is full form CLSS?

About Pradhan Mantri Awas Yojana. It aimed at achieving ‘Housing for All’ by the year 2022. Under this mission a subsidy scheme called Credit Linked Subsidy Scheme ( CLSS ) was launched to provide interest subsidy on loans availed for purchase/ construction/ extension/ improvement of a house.

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How do I check my PMAY U CLSS status?

How to track application in the CLSS tracker

  1. Visit
  2. On the home page, enter the application ID and click on ‘Get Status ‘

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