Credit Linked Subsidy Scheme for Middle Income Group

Under Credit Linked Subsidy Scheme, beneficiaries of Middle-Income Group (MIG) can seek housing loans from Banks, Housing Finance Companies and other such institutions for acquisition/ construction of house (including re-purchase). The credit linked subsidy will be available only for loan amounts upto Rs. 9 lakhs for MIG-I and Rs 12 lakhs for MIG-II and such loans would be eligible for an interest subsidy at the rate of 4 % and 3% respectively for a tenure of 20 years or during tenure of loan whichever is lower. The Net Present Value (NPV) of the interest subsidy will be calculated at a discount rate of 9%. Any additional loan amount beyond the limit will be at non-subsidized rate. However, the carpet area of the house should be strictly restricted within the permissible carpet area of 160 sq m and 200 sq m for MIG-I and MIG-II categories respectively.

MIG I households with an annual income more than Rs.6 lakh and up to Rs.12 lakh. | MIG II households with an annual income more than Rs. 12 lakh and up to Rs. 18 lakh.

CLSS under vertical of Pradhan Mantri Awas Yojana -Urban for Middle Income Groups was launched by the Government of India with the effect from January 1, 2017.

The subsidy is released by the CNAs based on the disbursements made by PLIs to the beneficiaries. Subsidy, disbursed by the CNA to the PLI, is credited by the PLI to the borrower's home loan account upfront by deducting it from the principal loan amount. As a result, the borrower will pay EMI on the remainder of the principal loan amount.

Role of States/UTs/ULBs under this vertical would be as under: | States/UTs/ULBs/PLIs shall ensure link beneficiary identification through Aadhaar for de-duplication. State Level Nodal Agency (SLNA) identified by State/UT for implementing the PMAY(U) will facilitate the identified eligible beneficiaries in getting approvals and documents, etc. to avail of Credit Linked Subsidy Scheme.

As of now, HUDCO, NHB and SBI have been identified as CNAs to channelize the credit linked subsidy to the PLIs and monitor the progress of CLSS. Ministry may notify other Institutions as CNA in future.

Primary Lending Institutions such as Scheduled Commercial Banks (SCB), Housing Finance Companies (HFCs), Regional Rural Banks (RRBs), State Cooperative Banks, Urban Cooperative Banks (Scheduled as well as Non-scheduled), Small Finance Banks (as approved by the Reserve Bank of India) and Non-Banking Financial Company-Micro Finance Institutions (NBFC-MFIs) (as registered with Reserve Bank of India) which have signed MoUs with any one of the CNAs.

Yes, PLIs can register with any CAN after signing MoU as provided in Annexure-I in the PMAY (U) guidelines.

An advance subsidy is released to each CNA at the start of the scheme. Subsequent amount of credit linked subsidy will be released to the CNAs after 70% utilization of earlier amounts based on claims raised by CNAs.

Yes, Preference under the CLSS will be given to Manual Scavengers, Women (with overriding preference to widows), persons belonging to Scheduled Castes/ Scheduled Tribes/ Other Backward Classes, Minorities, Persons with disabilities and Transgenders subject to beneficiaries being from EWS / LIG, MIG -I & II segments as applicable.

In cases where the construction of house is not completed within 36 months from the date of release of the first disbursement, subsidy is to be recovered by the PLI and refunded to the CNA who had released the subsidy.

Yes

No.

The list of Statutory Towns along with any other towns notified subsequently is provided through CNAs and may be accessed on the website of the CNAs and PMAY(U).

In such cases, the number of disbursal instalments can be decided based on the discussions between CNAs and PLIs for availing the benefit under the CLSS, provided all other requirements of the scheme are complied with.

It is the responsibility of the PLIs to carry out due diligence of the borrower as per their due diligence norms and as such recovery of NPAs, if any, is their responsibility. However, where the construction of the unit is stalled due to any reason, the subsidy released by MoHUA is to be recovered along with loan recovery by the PLI.

No

Resale cases would be allowed but it is incumbent upon banks to adopt their due diligence and banking mechanism processes to curtail speculative cases in this scenario.

NRIs can be considered provided they are eligible under the Scheme Guidelines and are also in compliance with other GoI/RBI rules, if any, applicable to NRIs.

The interest subsidy will be for tenure of 20 years or during the tenure of the loan whichever is lower. PLIs can fix the repayment tenure of more than 20 years, but the interest subsidy will be calculated for tenure upto 20 years.

The credit linked subsidy is available for a maximum tenure of 20 years or the actual tenure of loan, whichever is less.

No, there is no loan amount limit for loan accounts which are booked under CLSS. However, subsidy will be restricted to the loan amount of 9 Lakh and Rs.12 Lakh for MIG-I & MIG-II respectively.

The property on which the subsidy is to be availed has to have | Basic amenities such as water, sanitation, sewerage, roads, electricity etc. | Property must be located at Statutory Towns as per Census 2011 and towns notified subsequently, including Notified Planning/ Development Areas.

Yes, beneficiary can avail this facility, subject to meeting the income and other criteria defined under this scheme.

Yes. He/she can be considered as a separate household provided he/she avails the loan only in his/her own name and is also the sole owner of the property for which the loan is availed.