6 Lack Home Loan, 2% Interest.

The credit linked subsidy scheme (CLSS) is a benefit under the Pradhan Mantri Awas Yojana which focuses on helping the middle income groups, economically weaker sections, and lower income groups in India by bringing down their housing loan EMIs by over Rs 2000 per months by offering an interest subsidy. Under the middle income group, there are two sets of beneficiaries.

The first set MIG-1 covers people with an annual income of Rs 6 Lack to Rs 12 lack P.a. The second set called MIG-11 covers people who fall in the income group of Rs 12 lack to Rs 18 Lack p.a. An interest rate subsidy of 4% and 3% will be given to those who fall both sets of beneficiaries, the maximum tenure of loan can go up to 20 years. The maximum loan amount can go up to Rs 9 lack for MIG-1 and Rs 12 lack for MIG-11.

Also the discount rate for net present value (NPV) is 9% for both MIG-1 and MIG=11. When CLSS was introduced, the carpet area was set at 90 square meters for MIG-1 and 110 square meters for MIG-11. Recently, the cabinet increased the carpet area from 90 square meters (968-752 sq ft) to 120 square meters (1291-668 sq ft) for MIG-1. The carpet area for MIG-11 was also increased to 15 square meters (1614-585 sq ft ) which were 110 square meters (1184-03 sq ft) previously.