Union Ministry for Housing and Urban Affairs (MoHUA) has extended Credit Linked Subsidy Scheme (CLSS) for the middle-income group (MIG) under Pradhan Mantri Awas Yojana (Urban) till 31st March 2020. So far, the ministry has disbursed more than Rs 6900 cr interest subsidy on housing loans to over 3.14 lakh beneficiaries of CLSS under Pradhan Mantri Awas Yojana (Urban).
Credit Linked Subsidy under PMAY-Urban
- It is component under PMAY-Urban. It is the only central scheme under PMAY-Urban and remaining ones are implemented as sponsored schemes.
- This scheme is planned as demand-side intervention to expand institutional credit flow to the housing needs of urban poor.
- Under it Union Government provides interest subsidy for purchase/ construction/ extension/ improvement of house to cater Economical Weaker Section(EWS)/ Lower Income Group(LIG)/ Middle Income Groups (MIG).
- Implementing agencies: It is being implemented by two central nodal agencies namely Housing Urban Development Corp and National Housing Bank.
- CLSS for Middle-Income group: It covers two income segments in MIG viz. Rs.6,00,001 to Rs.12,00,000 (MIG-I) and Rs.12,00,001 to Rs.18,00,000 (MIG-II) per annum.
- For MIG-I, interest subsidy of 4% is provided for loan amounts up to Rs.9 lakh and for MIG-II, interest subsidy of 3% is provided for loan amount up to Rs.12 lakh
- Housing loans beyond Rs. 9 lakh and Rs. 12 lakh are non-subsidized rates.
Pradhan Mantri Awas Yojana (Urban)
- It aims provide houses to all poor in urban areas by 2022. It is new version of Prime Minister’s Housing For All by 2022 vision.
- Under it, Government provides subsidy ranging between 1 lakh to 2.30 lakh to people from above categories in order to make them secure.
- Objective: Construct two crore houses across nation. It covers entire urban area consisting of 4041 statutory towns with initial focus on 500 Class I cities.
- Intended beneficiaries are: Poor people (BPL) and People living under Economically Weaker Sections (EWS) and LIG (Low income Group) categories in urban establishments of country. It also targets people living under MIG (middle income Group).