Eligibility Guide for PMAY Urban 2.0: Credit Linked Subsidy Scheme (CLSS) Explained

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Eligibility Guide for PMAY Urban 2.0: Credit Linked Subsidy Scheme

2 min 13 Jan 2025
Highlights:
  • What is PMAY Urban 2.0?
  • Understanding the Credit Linked Subsidy Scheme (CLSS) Under PMAY-U
  • Eligibility Criteria for PMAY Urban 2.0 Under CLSS Scheme
  • How is the Interest Subsidy Calculated Under CLSS?
  • How to Apply for PMAY Urban 2.0 Under CLSS

The Pradhan Mantri Awas Yojana Urban (PMAY-U) 2.0 aims to make affordable housing accessible in urban regions. A significant feature of this scheme is the Credit Linked Subsidy Scheme (CLSS), which offers an interest subsidy on Home Loans, making repayments more manageable for beneficiaries.  

What is PMAY Urban 2.0? 

PMAY Urban 2.0 is an extension of the original housing mission launched to provide affordable homes to urban families. The scheme focuses on providing financial assistance and interest subsidies to first-time homebuyers belonging to the Economically Weaker Section (EWS), Low-Income Group (LIG), and Middle-Income Group (MIG). 

Understanding the Credit Linked Subsidy Scheme (CLSS) Under PMAY-U

The CLSS component of PMAY Urban 2.0 provides an interest subsidy on Home Loans taken by eligible beneficiaries for the purchase, construction, or enhancement of homes. The subsidy amount is credited upfront to the beneficiary’s loan account, reducing the overall principal and making the EMIs more affordable. 

Eligibility Criteria for PMAY Urban 2.0 Under CLSS Scheme

To qualify for CLSS benefits, applicants must meet the following criteria: 

  • Income Limits: 
    • EWS: Annual income up to Rs.3 Lakh. 
    • LIG: Annual income between Rs.3 Lakh and Rs.6 Lakh. 
    • MIG: Annual income between Rs.6 Lakh and Rs.9 Lakh. 
  • Property Ownership: Applicants or their family members must not own a pucca house anywhere in India. 
  • Women Ownership: Female co-ownership is mandatory, except for single male applicants or families without an adult female. 

How is the Interest Subsidy Calculated Under CLSS?

The interest subsidy is calculated based on: 

  • Loan amount (up to Rs.25 Lakh with maximum house value up to Rs. 35 Lakh) 
  • Tenor 
  • Subsidy rate  

For instance, beneficiaries can save up to Rs.1.80 Lakh in interest over the tenor of the loan, credited directly to their loan account, thereby reducing the EMI. 

How to Apply for PMAY Urban 2.0 Under CLSS

  1. Check Eligibility: Verify eligibility through the official portal or the PMAY Urban Mobile App. 
  2. Apply for a Home Loan: Approach a lender registered under the PMAY-U scheme. 
  3. Submit Documents: Provide income proof, Aadhaar-linked ID, property documents, and loan-related paperwork. 
  4. Verification and Approval: After verification, the subsidy amount is credited to the beneficiary’s loan account. 

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