New Delhi : The Minister of State for Housing and Urban Affairs, Shri Kaushal Kishore in a written reply to a question in the Rajya Sabha today informed that the Government provides interest subsidy on home loans under Credit Linked Subsidy Scheme (CLSS) vertical of Pradhan Mantri Awas Yojana-Urban (PMAY-U). Interest subsidy is credited upfront to the loan account of beneficiaries through lending institutions resulting in reduced effective housing loan and Equated Monthly Instalment (EMI).The salient details of CLSS are given in the following table:
|S.No.||Particulars||EWS||LIG||MIG – I||MIG – II|
|1.||Scheme Duration||17.06.2015 to 31.03.2022||01.01.2017 to 31.03.2021
|2.||Annual Household Income (₹)||Upto 3,00,000/-||3,00,001/- to 6,00,000/-||6,00,001/- to 12,00,000/-||12,00,001/- to 18,00,000/-|
|3.||Dwelling Unit Carpet Area (Up to) in sq. m||30#||60#||160||200|
|4.||Interest Subsidy (% p.a.)||6.5%||4.0%||3.0%|
|5.||Maximum Loan Tenure||20 Years|
|6.||Eligible Housing Loan Amount for Interest Subsidy (₹)*||6,00,000/-||9,00,000/-||12,00,000/-|
# In case of EWS/LIG, a beneficiary, at his/her discretion can build a house of larger area but interest subvention would be limited to first ₹6 lakh only.
* Loans beyond this limit will be at non-subsidized rate.
For implementation of CLSS vertical of PMAY-U Mission, Ministry identified three Central Nodal Agencies (CNAs), i.e. National Housing Bank (NHB) and Housing and Urban Development Corporation Ltd. (HUDCO) and State Bank of India (SBI) to channelize the subsidy to the Primary Lending Institutions (PLIs). CNAs have signed Memorandum of Understanding (MoU) with the PLIs [Banks, Housing Finance Companies, Non-Banking Financial Company – Micro Finance Institutions (NBFC-MFI) etc.] for implementation of CLSS.
An applicant desirous of availing the interest subsidy had to approach the Primary Lending Institutions (PLIs) [Banks, HFCs, etc] who had entered into a Memorandum of Understanding (MoU) with any of the three Central Nodal Agencies. The applicant had to comply with the documentation and other formalities as prescribed under the ‘due diligence’ of the bank/HFC concerned, if he was otherwise eligible under the scheme guidelines of PMAY-U mission. Once an applicant was considered eligible for the interest subsidy under CLSS, the PLI concerned forwarded his application to the Central Nodal Agency (CNA), with whom it had signed the MoU, for release of interest subsidy. The CNA, after scrutiny released the interest subsidy to the housing loan account of the applicant through the PLI.
Under CLSS vertical of PMAY-U, so far, an interest subsidy of ₹48,095 crore has been released as interest subsidy for 20.76 lakh beneficiaries.
During the implementation of scheme, in order to spread awareness, meetings and workshops were regularly held at City, State and Regional levels to explain the salient features of the PMAY-U Mission including CLSS vertical. To publicize the CLSS, radio spots had been broadcasted in twelve languages, including Hindi. Also, Social media and the medium of street plays were used effectively to engage with the stakeholders. Further, workshops were regularly held by the Central Nodal Agencies (CNAs) identified for operationalizing CLSS, to spread awareness among Banks, Housing Finance Companies (HFCs) and other Primary Lending Institutions (PLIs) on CLSS. The progress of the scheme reviewed in the State Level Banker’s Committee (SLBC) meetings.
For more efficient and transparent processing of the claims and seamless disbursement of interest subsidy to the beneficiaries, Government had launched a CLSS Awas Portal (CLAP). This portal is easy to use by beneficiaries and has a CLSS Tracker which enables beneficiaries to track the status of their applications. CLAP also has provision for sending SMS alerts for status of application of CLSS interest subsidy to beneficiaries.