Know about Credit Linked Subsidy Scheme

2 years ago Sarkari user 0
Credit Linked Subsidy Scheme under Pradhan Mantri Awas Yojana (PMAY) – housing for all aims at rehabilitation of existing slum dwellers, Promotion of Affordable Housing for weaker section through credit linked subsidy (home loan subsidy).
One of the objective of PMAY is to provide subsidy on home loans taken under this scheme. To provide this loan facility, Credit Linked Subsidy Scheme is initiated only for affordable housing loans availed by Economically Weaker Sections (EWS) and Low Income Groups (LIG), under  this scheme the government will provide the home loans to the poor urban people from banks and housing finance companies and such other institution as may be eligible to be a part of this scheme.
Details about subsidy scheme:
  • If the loan amount is less than Rs 6 lakh, then the interest rate on loan is  charged at 6.5% to the beneficiary. To avail this subsidy, the loan tenure has to be less than or equal to 15 years.
  • If the loan amount is more than Rs 6 Lakh, the interest rate of 6.5% is applicable on loan amount of up to Rs 6 Lakh and the remaining balance loan amount will be subject to normal current market rates. For example : If you apply for home loan under PMAY scheme for Rs 8 Lakh, up to Rs 6 Lakh the interest rate is charged at 6.5% and the balance Rs 2 Lakh is charged at current interest rates by your bank or lending institution.
  • In villages, those people who want to build or expand their homes will get loans of up to 2 lakh, with a 3% interest relief.

How much subsidy you will get?

  • For 6 Lakh the interest subsidy approximately Rs. 2,20,000.
  •  If you apply for a loan of Rs. 8 Lakh then the maximum subsidy works out to Rs. 2,20,000. The amount Rs. 2,20,000 would be reduced upfront from your loan account (i.e., the loan would reduce to Rs. 5,80,000) and you would pay EMIs on the reduced amount of Rs. 5,80,000 only. (Kindly note that 6.5% is the rate of interest up to Rs 6 Lakh & current rate is charged for the remaining Rs 2 Lakh.)

Credit Linked Subsidy scheme                 Credit Linked Subsidy scheme

NOTE: Credit Linked Subsidy Scheme scheme is the component of Pradhan Mantri Avas yojana (PMAY)  and it has become effective from 17 June 2015 . Housing and Urban Development Corporation (HUDCO)  and National Housing Banks (NHB)  are identified to chanalise  credit linked scheme.


  • The families who do not have pucca house are eligible to take the benefit of this scheme and apply for this scheme to get well settled.
  • Economically Weaker Section (EWS) & Low Income Group (LIG) people can take the benefit of this scheme.
  • The married families who have unmarried children can take the benefit of this scheme.
  • Income proof is must.

How to apply: People can apply for a home loan under Pradhan Mantri Awas Yojana Scheme and can get the subsidy. You can also apply for a home loan to construct a new house or renovate your existing house.

For more details – Click Here

CLSS Toll-free helpline Number:

NHB: 1800-11-3377


HUDCO: 1800-11-6163