Eager to make the Pradhan Mantri Awas Yojana (PMAY) a success, the Credit linked subsidy scheme (CLSS) component of PMAY (Urban) on home loans for the Middle Income Group (MIG) has been extended till March 31, 2019. Union Housing and Urban Affairs Minister Hardeep Singh Puri on Monday announced that he has signed the file pertaining to the extension of the CLSS under which the government provides a subsidy of up to Rs 2.67 lakh on home loans. Till December 30 this year, around 3,39,713 beneficiaries have availed the CLSS under the PMAY (Urban).
“I have just signed a file before I came here. It was on the CLSS scheme which we have extended for one year up to March 31, 2020. The last extension was up to March 31, 2019,” he said.
According to the Ministry, the CLSS for the MIG, launched originally for 12 months till December 31, 2017, covered beneficiaries seeking housing loans for acquisition or construction of houses (including re-purchase) from banks, housing finance companies and other such notified institutions.
Later, the Ministry issued a statement, stating, “The proposal for extension of the scheme was considered based on the inputs from various stakeholders in the month of October 2017, and was accorded approval for extension by 15 months up to March 31, 2019.”
Under the CLSS, for the MIG I category, which consists of individuals with an annual income of Rs 6-12 lakh, an interest subsidy of 4 percent is provided on a loan of up to Rs 9 lakh. For the MIG II category, which is made up of individuals with an annual income of Rs 12-18 lakh, an interest subsidy of 3 per cent is given on a loan of up to Rs 12 lakh. The benefits are typically in the Rs 2-2.5 lakh range.
The carpet area of a housing unit was initially revised to up to 120 sq m and up to 150 sq m for MIG I and MIG II respectively in November, 2017 and further enhanced to up to 160 sq m and up to 200 sq m for MIG I and MIG II, respectively in June, 2018.