Reduce your home loan EMI by Rs. 2,800/month under CLSS (MIG) scheme of Pradhan Mantri Awas Yojana: How to avail



As part of Government of India's initiative to help build houses for all, a scheme called Credit Linked Subsidy Scheme for Middle Income Groups - CLSS (MIG) has been launched under Pradhan Mantri Awas Yojana (Urban). The scheme was announced by Prime Minister Narendra Modi in his New Year eve address. National Housing Bank (NHB) has come up with operational guidelines for availing the EMI subsidy under this scheme.

Under this scheme, middle-income groups buying their first home can avail an interest subsidy that varies from Rs 2000 to Rs 2800 depending on the loan amount and tenure.

Also read: How to Apply Your Free SBI Unnati Credit Card: Features, Charges and Documents Required


Reduce your home loan EMI by  Rs. 2,800/month under CLSS (MIG) scheme of Pradhan Mantri Awas Yojana: How to avail

How the scheme works:


A person can avail an interest subsidy of 4 per cent on housing loans of up to Rs. 9 lakh if his income is Rs 12 lakh per year and of 3 per cent subsidy on housing loans of up to Rs.12 lakh if his income is  Rs.18 lakh per year.

All the home loans sanctioned or applications under the process since January 1, 2017 are eligible to receive the interest subsidy under CLSS. However, the beneficiary should not have a house or property in his/her name.

Beneficiaries eligible under this scheme can apply to their lenders to receive the interest subsidy. NHB will pay the subsidy up front to the lender.

The total interest subsidy amount is calculated to around  Rs. 2.30 lakh per beneficiary ( 20-year loan at a discounting rate of 9 per cent)

The interest subsidy will be provided on loans for construction/acquisition of house with the carpet area of up to 90 sq meters for those with income of up to Rs. 12 lakh per year and of up to 110 square meters for those earning between Rs. 12 lakh and Rs. 18.00 lakh per year.

Besides all commercial banks, housing finance companies, regional rural banks, state and urban cooperative banks, other financial institutions like small finance banks and non-banking finance company-micro finance institutions are eligible to lend under this scheme. 

National Housing Bank has bonded with many big lenders and is in the process of signing an agreement with many others.

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