Have you recently purchased a flat or house on home loan and looking for subsidy on interest payment? Then, you need to hurry as the last date to avail The Pradhan Mantri Awas Yojana (PMAY) Credit-Linked Subsidy Scheme (CLSS) is March 31, 2020. The final amount of subsidy will depend on your annual income in the last financial year, loan amount & the size of your house.
What is PMAY Credit-Linked Subsidy Scheme?
Under the Pradhan Mantri Awas Yojana Credit-Linked Subsidy Scheme, if your annual income is between Rs 6 lakh and Rs 12 lakh, you will fall under MIG-1 scheme. While those having an income between Rs 12 lakh and Rs 18 lakh will fall under MIG-II category. It is to be noted that the maximum amount of subsidy which you can avail under MIG-I scheme is Rs 2,35,068 and Rs 2,30,156 under MIG-II scheme. The government pays this subsidy to your bank from which you have taken home loan. Once the subsidy is received your bank will reduce EMI on your home loan.
Method to calculate CLSS subsidy:
MIG-I category-
Here the subsidy amount is calculated based on 4% interest on loan amount up to Rs 9 lakh.
MIG-II category-
In this category, an interest subsidy of 3% is given for loan up to Rs 12 lakh. If you have taken a loan for a higher amount for purchasing a house, even then your subsidy will be limited to Rs 12 lakh.
To calculate the subsidy amount the tenure of the loan is calculated as 20 years or the actual tenure of the loan, whichever is lower.
How to apply for PMAY CLSS subsidy?
If you are a first-time homebuyer, then you can avail this subsidy. However, if you or your family members already have a property in their name then you can not avail this subsidy. The application to avail this subsidy will be processed by the bank from which you have availed the home loan. This whole process takes around 3-6 months to complete.
Direct link to apply - https://pmay-urban.gov.in/clss
