Credit Linked Subsidy Scheme Current Affairs - 2019
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The Minister for Housing and Urban Affairs Hardeep Singh Puri has said that the loan subsidy for the middle-income group under Pradhan Mantri Awas Yojana, (PMAY) has been extended till 31st March 2020.
The Minister said that more than Rs 6900 cr interest subsidy on housing loans has been disbursed to over 3.14 lakh beneficiaries of Credit Linked Subsidy Scheme (CLSS) under Pradhan Mantri Awas Yojana (Urban).
Credit Linked Subsidy under PMAY-Urban
The Credit Linked Subsidy Scheme (CLSS) is a component under the PMAY-Urban. Under the scheme, the central government provides interest subsidy or purchase/construction/extension/improvement of a house to cater Economical Weaker Section(EWS)/Lower Income Group(LIG)/Middle Income Groups (MIG).
The CLSS is being implemented by two central nodal agencies in India, namely Housing Urban Development Corp and National Housing Bank. The CLSS is planned as a demand-side intervention to expand institutional credit flow to the housing needs of the urban poor.
The CLSS is the only central scheme under the PMAY-Urban and the remaining ones are implemented as sponsored schemes.
For Middle-Income group
CLSS for Middle-Income group covers two income segments in the 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, an interest subsidy of 4% has been provided for loan amounts up to Rs.9 lakh and for MIG-II, an interest subsidy of 3% has been provided for loan amount up to Rs.12 lakh. Housing loans beyond Rs. 9 lakh and Rs. 12 lakh will be at non-subsidized rates.
The Union Cabinet has approved increase in carpet area of houses eligible for interest subsidy under Credit Linked Subsidy Scheme (CLSS) for Middle Income Group (MIG) under Pradhan Mantri AwasYojana (Urban). The purpose is to further enhance the scope, coverage and outreach of Scheme.
Cabinet has approved
- Increasing carpet area in MIG I category of CLSS from existing 90 square metre (sq m) to up to 120 sq m. Under MIG-I category, 4% interest subsidy is provided to beneficiaries, whose annual income is between Rs. 6 lakh and Rs. 12 lakh, on loan of up to Rs 9 lakh.
- Increasing carpet area in MIG II category of CLSS from existing 110 sq m to up to 150 sq m. Under MIG-II category, beneficiaries with an annual income of Rs 12 lakh to Rs 18 lakh get an interest subsidy of 3% on loan of up to Rs 12 lakh.
The limit of 120 sq m and 150 sq m is seen as reasonable enhancement and it will cater to market generally scouted by MIG belonging to two income categories specified in the scheme. The increase in carpet area will enable MIG-I category of individuals to have wider choice in Developers’ projects. Moreover, it will also give boost to sale of ready built flats in affordable housing segment.
Ministry of Housing and Urban Affairs is implementing Credit Linked Subsidy Scheme for Middle Income Group (CLSS for MIG) under Pradhan Mantri Awas Yojana (Urban). Under PMAY-U, Government aims to provide houses to all urban poor by 2022. 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 EWS and LIG categories in urban establishments of the country. The ownership of houses will be in name of woman or jointly with husband. Besides, states have flexibility to for choosing best options to meet demand of housing in their states.