PMAY CLSS extended till March 31, 2021 Know how to avail Rs 2.3 Lakh Subsidy for House
The Finance Minister has announced extension of of the Pradhan Mantri Awas Yojana (PMAY) Credit Linked Subsidy Scheme (CLSS), for one more year till 31 March 2021. The extension will help create demand for affordable housing and will lead to Rs 70,000 crore investment in the housing sector
For middle-income group for people between the income of Rs 6 lakh to 18 lakh, the government has extended the credit-linked subsidy scheme up to March 2021; 2.5 lakhs middle income families to benefit during 2020-21, Finance Minister Nirmala Sitharaman said.
Finance Minister Nirmala Sitharaman said, For middle-income group for people between the income of Rs 6 lakh to 18 lakh, the government has extended the credit-linked subsidy scheme up to March 2021; 2.5 lakhs middle income families to benefit during 2020-21. The last date for anyone wishing to avail the Pradhan Mantri Awas Yojana (PMAY) Credit-Linked Subsidy Scheme (CLSS) scheme was March 31, 2020 but now stands at March 31, 2021.
What is CLSS Subsidy and how it is calculated?
In the MIG-I category, the subsidy amount is calculated based on 4% interest on loan amount up to Rs 9 lakh. In the MIG-II category, an interest subsidy of 3% is provided for loan up to Rs 12 lakh. Even if you have taken a loan for a higher amount for purchasing a house, your subsidy will be limited to the above amount.
For calculating the subsidy amount the tenure of the loan is calculated as 20 years or the actual tenure of the loan, whichever is lower. If your annual income is between Rs 6 lakh and Rs 12 lakh, you will fall under MIG-1 scheme and those having an income between Rs 12 lakh and Rs 18 lakh will fall under MIG-II category. Worth mentioning here is that the maximum amount of subsidy you can avail under MIG-I scheme is Rs 2,35,068 and Rs 2,30,156 under MIG-II scheme.
| Particulars | Economic weaker section (EWS) | Lower Income group (EWS) | Middle Income Group- I (MIG I) | Middle Income Group- II (MIG II) |
| Total Income | Up to 3 Lakh | 3 to 6 Lakh | 6 to 12 lakhs | 12 to 18 Lakh |
| Carpet area of the property in sq mt | 30 | 60 | 160 | 200 |
| Eligible Amount | 6,00,000 | 6,00,000 | 9,00,000 | 12,00,000 |
| Maximum Loan Tenure | 20 years | 20 years | 20 years | 20 years |
| Interest Subsidy | 6.5% | 6.5% | 4% | 3% |
| Discounted rate for NPV | 9% | 9% | 9% | 9% |
| Subsidy amount for a 20 years loan | Rs.2,67,280/- | Rs.2,67,280/- | Rs.2,35,068/- | Rs.2,30,156/- |
| Monthly savings on Loan interest (approx.) | Rs. 2,500/- | Rs. 2,500/- | Rs. 2,250/- | Rs. 2,200/- |
How to avail from Bank the CLSS Subsidy ?
To avail of this subsidy, you have to be a first-time home buyer. If you or your family members already have a property in their name then you can not avail this subsidy. The bank usually takes 4 to 5 months to process the application and it is credited to your loan account
Rs 70,000 crore boost to housing sector and middle income group through extension of CLSS is a boost to real estate sector.
2.5 lakhs middle income families will benefit during 2020-21.
