Credit Linked Subsidy

Know All About Credit Linked Subsidy Scheme (CLSS) And How It Works

FindItMore | Credit Linked Subsidy Scheme (CLSS) provides interest subsidy to customers under some basic criteria. It is a part of the Pradhan Mantri Awas Yojana (PMAY). PMAY scheme was introduced by the Central Government in the year 2015.

What is the Aim of Pradhan Mantri Awas Yojana?

It was introduced with the tagline “Housing for all”. The main objective of this scheme is to rehabilitate slums with the Credit Link Subsidy Scheme (CLSS) to make housing affordable to all.

Eligibility Criteria to avail Credit Link Subsidy Scheme (CLSS)

CLSS scheme offers interest subsidy to people who meet the following criteria:

  • The loan is provided only for the purchase/construction of property in cities which are covered under the PMAY scheme.
  • The property should be owned by at least one woman.
  • There is a criterion for the maximum income of the family –
    • 6 lakhs per annum for EWS/LIG segment
    • 12 lakhs per annum for MIG-I segment
    • 18 lakhs per annum for MIG-II segment

Your family income should not be more than the one mentioned above to avail the interest subsidy.

  • The carpet area of the property should be 90 sq. mts for MIG-I segment and 110 sq. mts for MIG-II segment.
  • It should be your first purchase, i.e., you should not possess any other property prior to this.
  • You need to have an Aadhaar card as it is mandatory under this scheme.
  • The property that you purchase should not be availing any other Central Government subsidy.

Credit Link Subsidy Scheme (CLSS) for EWS and LIG

This scheme covers the Economically Weaker Section (EWS) and Low Income Group (LIG) who has an income of Rs.3 lakhs and Rs.6 lakhs per annum respectively. If you take a loan of Rs.6 lakhs, you will get an interest subsidy of 6.50%. This means that you will get a total interest subsidy of 2.30 lakhs on a loan of Rs.6 lakhs. The tenure of the loan has been set at 20 years which is easier for both the income groups to pay.

Credit Link Subsidy Scheme (CLSS) for MIG

Under this scheme, the Middle Income Group 1 & 2 (MIG) segment with an annual income of Rs.6 lakhs to Rs.18 lakhs per annum can avail interest subsidy on the first house. The tenure of the loan is set at 20 years. The eligible people can avail interest subsidy on loans for the construction or acquisition of a house with the carpet area of 90 square meters and 110 square meters respectively.

Steps to avail Credit Link Subsidy Scheme (CLSS)

You need to follow the below steps to avail this scheme:

  • First, you need to check your eligibility to apply for this scheme. You can avail this loan scheme only if you are eligible as per the above-mentioned criteria.
  • In case you fail to meet the eligibility criteria, you can contact the banks or financial institutions that have participated in this scheme.
  • The next step that you need to follow is to fill the PMAY Home Loan Credit Linked Subsidy Application form and submit to the lender along with the required documents.
  • After the verification of the documents, the lender will disburse the housing loan amount to your bank account.
  • After the disbursement of the loan, the lender will contact the nodal agencies to initiate the process of claiming the interest subsidy.
  • On verification, the interest subsidy will be credited to your loan account and adjustments will be made to your loan account to reflect the Equated Monthly Instalment amount.

The Bottom Line

Credit Link Subsidy Scheme (CLSS) is a great initiative by the Government to promote affordable housing for all income groups. If you are planning to buy a house, you should certainly take this scheme into consideration and proceed further. For more details about PMAY Eligibility, you need to Contact Banks or NBFCs.

To help you in this regard, Bajaj Finserv also brings you pre-approved offers for personal loans, home loans, business loans and a host of other financial products. All you have to do is provide some basic details and check your pre-approved offer.


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