Pradhan Mantri Awas Yojana – Credit Linked Subsidy Scheme

Pradhan Mantri Awas Yojana – Credit Linked Subsidy Scheme

Pradhan Mantri Awas Yojana

In order to empower people to get their dream home, honorable Prime Minister has announced a comprehensive and a progressive mission, 'Pradhan Mantri Awas Yojana – Housing for All' on 17 June, 2015.

One of the major verticals of Pradhan Mantri Awas Yojana (PMAY) is Credit Linked Subsidy Scheme (CLSS) for Lower Income Group/Economically Weaker Section (EWS/LIG) and Middle Income Group (MIG – I & II). Under this scheme, Central government provides financial assistance through lending Institutions to eligible beneficiaries across all statutory towns as per 2011 census and their adjacent planning area (updated by the government from time to time)

The interest subsidy is channelized through two central nodal agencies - National Housing Bank (NHB) and Housing & Urban Development Corporation (HUDCO). The apex government bodies channelize subsidy to the lending institutions and they help the eligible applicants to avail subsidy.

IIFL Home loans is an approved lender and loan applications which meet eligibility criteria for CLSS subsidy are forwarded to National Housing Bank (NHB) for approval. An applicant can avail maximum interest subsidy of upto Rs 2.67 lacs*. Central government provides interest subsidy which is credited to eligible beneficiary’s loan account. Hence, a beneficiary receiving subsidy of Rs. 2.67 lac* on a loan amount of Rs. 20 lac for 20 years loan tenure, at interest rate of 9.50% actually gets loan a home loan at effective rate of 7.53%.

IIFL Home Loans have been helping beneficiaries to avail this subsidy across the country.

Credit Linked Subsidy Scheme


EWS and LIG households/families, whose annual household income is upto Rs 6 lakh is eligible to avail subsidy under this scheme; The ‘family’ must not own a pucca house in any part of India. Subsidy credited upfront to the loan account of beneficiary resulting in reduced effective housing loan and EMI.

Features of CLSS

  • The maximum subsidy up to Rs. 2.67 Lakhs*
  • Interest subsidy at a rate of 6.5%* for a tenure of 20 years or tenure of loan, whichever is lower
  • Subsidy available only for loan amounts upto Rs 6 lakh and additional loans beyond Rs 6 lakh, if any will be at non subsidized rate
  • Aadhar card is mandatory for applying for this scheme

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