Pradhan Mantri Awas Yojana (PMAY) – Credit Linked Subsidy Scheme ( CLSS) by HDFC bank.
Ministry of Housing and Urban Poverty Alleviation (MoHUPA) has introduced in June 2015, an interest subsidy scheme called Credit Linked Subsidy Scheme (CLSS) under Pradhan Mantri Awas Yojana (URBAN)-Housing for All, for purchase/construction/extension/improvement of house to cater Economical Weaker Section(EWS)/Lower Income Group(LIG)/Middle Income Group (MIG), given the projected growth of urbanization & the consequent housing demands in India.
Here are the FAQs on the scheme by HDFC bank.
1Q. Who Can Avail Subsidy Under Credit Linked Subsidy Scheme (CLSS)?
1A. A beneficiary family not owning a house in any part of the India is eligible for this subsidy subject to income criteria as defined for the family.
2Q. What Is The Definition Of Beneficiary Family?
2A. The beneficiary family will comprise husband, wife and unmarried children. (An adult earning member irrespective of marital status can be treated as a separate household in MIG category)
3Q. What Are The Income Norms For EWS, LIG And MIG Categories?
|CLSS Scheme Type||Eligibility Household Income ( Rs.)||Carpet Area-Max (sqm)||Interest Subsidy (%)||Subsidy calculated on a max loan of||Loan Purpose||Validity of scheme||Max Subsidy (Rs.)||Woman Ownership|
|EWS and LIG||Upto Rs. 6,00,000||60 sqm||6.50 %||Rs. 6,00,000||Purchase/Self Construction/Extension||31/03/2022||2.67 Lacs||Yes *|
|MIG 1 **||Rs. 6,00,001 to Rs. 12,00,000||90 sqm||4.00 %||Rs. 9,00,000||Purchase/Self Construction||31/12/2017||2.35 Lacs||Not Mandatory|
|MIG 2 **||Rs. 12,00,001 to Rs. 18,00,000||110 sqm||3.00 %||Rs. 12,00,000||Purchase/Self Construction||31/12/2017||2.30 Lacs||Not Mandatory|
* woman ownership is not mandatory for construction / extension
**for MIG – 1 & 2 loan should be approved on/or after 1-1-2017
4Q. Is This Applicable For Properties In Rural Areas?
5Q. Is Woman Ownership Mandatory To Be Eligible For This Subsidy?
5A. Woman ownership or co-ownership is mandatory for EWS and LIG. However, this condition is not mandatory for self construction/extension or MIG categories.
6Q. What Is The Process Of Claiming Interest Subsidy?
6A. After the loan is disbursed, the required details are sent by HDFC to NHB for validation of data and other checks. NHB after necessary due diligence approve the subsidy to eligible borrowers.
7Q. How Will I Receive The Interest Subsidy Benefit?
- After the loan is disbursed, the HDFC will claim subsidy for eligible borrowers from National Housing Bank (NHB).
- NHB after due diligence would approve & credit the subsidy amount to HDFC for all eligible borrowers.
- The subsidy will be calculated on the NPV (Net Present Value) method at a discount rate of 9%.
- On receipt of subsidy amount from NHB , same is credited to respective home loan account of the borrower and EMI is reduced proportionately.
8Q. What Happens When The Subsidy Has Been Disbursed But Due To Certain Reasons, The Construction Of The House Is Stalled?
8A. In such cases, the subsidy is to be recovered and refunded to the Central Government.
9Q. Can A Beneficiary Family Get A Loan Term Beyond 20 Years?
9A. Yes, beneficiary can avail a longer term beyond 20 years as per HDFC credit norms but the subsidy will be restricted to a max term of 20 years.
10Q. Is There Any Limit On The Loan Amount Or The Cost Of The Property?
10A. No, but the subsidy will be limited to the loan amount defined against each category and additional amount will be at non- subsidized rate of interest.
11Q. How Will The Interest Subsidy Work In Case I Transfer My Home Loan To Another Lender?
11A. In case a borrower who has taken a housing loan and availed of interest subsidy under this scheme but later on switches to another lending institution for balance transfer, such beneficiary will not be eligible to claim the benefit of this scheme again.
12Q. Where Can I Apply For Credit Linked Subsidy Scheme (CLSS)?
12A. You can apply for housing loan under CLSS at any HDFC branches.
13Q. Do I Have To Give Any Additional Documents To Avail This Subsidy?
13A. No, there are no additional documents except a self declaration of not owning a pucca house in the format as available in HDFC offices.
14Q. Can NRI Avail PMAY by HDFC bank?
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