When the PMAY loan was first announced, a lot of people (actually a majority of Indians) praised Mr. Modi. The PMAY campaign was just one of the many things the Indian PM had in mind for the economically poor section of the society. A lot many people appreciated the initiative and were able to fulfill their dream of owning a house using the subsidized home loan under the PMAY campaign. However, there was one section of the society which wasn’t happy! Who? The existing home buyers.
Why? As the matter stands, PMAY home loan is only for people who don’t own a house yet. So, people who just purchased a home using a home loan weren’t eligible for the benefits even if the loan was sanctioned just a day before PMAY was announced. Therefore, people who were eligible for PMAY benefits weren’t able to claim it and hence, weren’t really happy. This disappointment amongst people leads to the introduction of PMAY CLSS (PMAY Credit Linked Subsidy Scheme).
What is PMAY CLSS?
PMAY CLSS stands for PMAY Credit Linked Subsidy Scheme wherein the Central Government offers interest subsidy to eligible customers who meet the eligibility criteria. If you and your lender qualify the terms, the applicable subsidy amount depending on your loan value would be credited into your home loan account. The subsidy amount would be deposited and added to the principal component of the loan. This will automatically reduce the loan tenor and the EMI amount.
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The CLSS is available for eligible candidates belonging to the LIG and MIG category and the subsidy varies depending on your economic condition.