Pradhan Mantri Awas Yojana (PMAY) - Credit Linked Subsidy Scheme (CLSS)

The "Credit Linked Subsidy Scheme” (CLSS) under Pradhan Mantri Awas Yojana (PMAY) was announced by our Honourable Prime Minister Shri Narendra Modi. Taking forward our Prime Minister’s mission of ‘Housing for All by 2022’, we too have joined hands to make this a reality. Initiated by the Ministry of Housing and Urban Poverty Alleviation (MoHUPA) in 2015, this scheme addresses the growing need for proper housing facilities.
Under this scheme, interest subsidy on purchase or construction of house is provided to customers belonging to Economical Weaker Section (EWS)/Lower Income Group (LIG)/Middle Income Group (MIG).

  1. The scheme is offered to beneficiary families, comprising of husband, wife and unmarried children.
  2. An adult earning member irrespective of marital status can be treated as a separate household.
  3. The family should not own a pucca house in his/ her name or in the name of any member of the family, in any part of India
  4. The beneficiary family should not have received central assistance under the Mission “Housing for all by 2022”
  5. Aadhaar number(s) is mandatory under all scheme categories for all beneficiaries.
  6. The property addresses should be lying within the statutory town/planning areas as notified by MoHUA under PMAY-CLSS scheme.
  7. Interest subsidy will be available for a maximum loan tenure of 20 years or the loan tenure availed by the borrower whichever is lower.
  8. There is no cap on the loan amount or on the cost of property.
  9. The additional loan beyond the specified limits, if any will be at non-subsidized rate
  10. The Net Present Value (NPV) of the interest subsidy will be calculated at a discount rate of 9%
  11. Upfront interest subsidy benefit on principal outstanding                                                                                                                                                                                                                           

                             Key Parameters of Credit Linked Subsidy Scheme
     Scheme category  EWS/LIG  MIG I  MIG II
    Maximum Household income per annum Up to Rs. 6,00,000 Rs.6,00,001 -Rs.12,00,000 Rs.12,00,001-Rs.18,00,000
    Carpet Area-Max (sq. m.) No restriction 160 200
    Subsidy calculated on a max loan of Rs.6,00,000  Rs.9,00,000 Rs.12,00,000
    Interest Subsidy (%) 6.50 4.00 3.00
    Max Subsidy (Rs.) 2.67 Lakh 2.35 LAkh 2.30 Lakh
    Loan sanctioned date eligible for subsidy benefit After 17.06.2015 onwards 01.01.2017 onwards 01.01.2017 onwards
    Validity of scheme 31 March 2022 31 March 2021 31 March 2021
    Woman Ownership Mandatory* Non Mandatory Non Mandatory
    *The House constructed/acquired should be in the name of female head of the household or in the joint names of male head of the household and his wife. Only in cases, where there is no adult female member in the family, the house can be in the name of male member of the household. However this stipulation is applicable only for new purchases and not for new construction (on an existing piece of land) or for enhancement/repairs of an existing house.                                                                        
Process to avail subsidy
  1. If you are eligible for PMAY subsidy benefit and have not availed the same while taking Home Loan from us, you can visit your home branch. The bank will review your request for subsidy claim and will submit the claim to National Housing Bank.
  2. Aadhaar is mandatory to avail subsidy, hence Aadhaar card is required of all beneficiary  family members.
  3. Details of family members are to be provided correctly in the undertaking for application under PMAY.
  4. Subsidy is subject to approval and clearance from National Housing Bank.