The total number of first-time homebuyers who have benefited from interest subsidy under the Credit Linked Subsidy Scheme (CLSS) currently stands at over 54,000 out of which about 2,300 are from the middle-income group category, say ministry sources.
“MIG sections have been brought under the ambit of CLSS from January 1, 2017, with a provision of Rs 1,000 crore for this purpose. So far, over 54,000 beneficiaries, including 2,300 MIG beneficiaries, have been given interest subsidy under CLSS and more applications are under process. So, the Rs 1,000 crore provided for MIG is still to be exhausted. For the extended period of January 2018 to March 2019, provision will be made appropriately as we go along,” sources said.
Affordable houses so far approved under Pradhan Mantri Awas Yojana (Urban) or PMAY (Urban) is 26,13,568 with a total approved investment of Rs 1,39,621 crore for which central assistance of Rs 40,597 crore has been approved, they said. As many as 48,000 houses have been so far approved under CLSS PMAY (Urban) for which interest subsidy has been released.
To meet the affordable housing target of constructing 1.2 crore houses by 2022, the government last week extended the benefits of the CLSS under Pradhan Mantri Awas Yojana (Urban) by 15 months beyond December this year. The subsidy of up to Rs 2.60 lakh on home loans available for the middle-income group (MIG) will now be available until March 2019.
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Last week, Housing and Urban Affairs Secretary Durga Shanker Mishra had said that the government has decided to give more time for MIG beneficiaries to avail interest subsidy under PMAY (Urban) at the Real Estate and Infrastructure Investors Summit organised by NAREDCO in Mumbai.
“We are looking to extend all possible support to overcome the hurdles adversely impacting housing construction so as to meet the target of Housing for All by 2022,” he had said.
Benefits of CLSS
Under CLSS, those who do not own a ‘pucca’ house anywhere in India qualify for the scheme. Those with an annual income of above Rs 6 lakh to Rs 12 lakh per annum can avail of it under CLSS: MIG 1 and those with an income between Rs 12 lakh to Rs 18 lakh per annum can avail of it under CLSS: MIG 2. Under the first category, buyers can get an interest subsidy of 4 percent on a 20-year loan component of Rs 9 lakh. And those in the second category get an interest subsidy of 3 percent.
In July this year, the government amended the PMAY (Urban) Housing for All Mission guidelines to include any adult earning member irrespective of his marital status as a separate householder who does not own a pucca house. Earlier, the definition of a beneficiary’s family was limited to a family or a household consisting of husband, wife, unmarried sons and daughters who did not own a pucca (an all-weather dwelling unit) house. Now, even unmarried children of a household are eligible to apply for loans under PMAY.
As per the amended PMAY guidelines, in case of a married couple, either of the spouses or both in joint ownership will be eligible for a single house, subject to income eligibility of the household under the scheme.