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PMAY subsidy extended for home loans till March 2020

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PMAY subsidy extended for home loans till March 2020

The Central Government has extended the CLSS (Credit Linked Subsidy Scheme) for home loans till March 2020 under the PMAY (Pradhan Mantri Awas Yojana) for the middle-income group (MIG). This has already been declared by Hardeep Singh Puri, the Union Minister for Housing & Urban Affairs. The Government offers subsidies up to Rs. 2.67 lakh on home loans under this scheme. 3, 39, 713 people have already opted for the CLSS scheme under the PMAY (Urban) blueprint till the 30th of December, 2018.

The CLSS (Credit Linked Subsidy Scheme) for the middle-income group was originally introduced for a period of 12 months till the 31st of December, 2017 and was suitable for those seeking home loans in this income threshold for building or buying homes from HFCs, banks and other notified financial institutions. The proposal of the extension of the scheme was approved after taking inputs from multiple stakeholders in October 2017 and an extension of 15 months was given till March 2019.

A further extension has now been offered by the Central Government. This should definitely boost the real estate market since more people will now want to buy their homes under this scheme by opting for home loans. Under CLSS, MIG applicants with annual incomes between Rs. 6-12 lakh get interest subsidies of 4% on loan components of Rs. 9 lakh for 20 years. People with annual incomes between Rs. 12-18 lakh will get 3% as interest subsidy.

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