Extension of CLSS on home loans

The Centre has extended the Credit Link Subsidy Scheme (CLSS) on home loans for the Middle Income Group (MIG) under the Pradhan MantriAwasYojana (Urban) till March 2020, Union Housing and Urban Affairs Minister Hardeep Singh Puri said Monday. Addressing a press conference, Puri said he has signed the file pertaining to the extension of the CLSS under which the government provides a subsidy of up to Rs 2.67 lakh on home loans. “I have just signed a file before I came here. It was on the CLSS scheme which we have extended for one year up to March 31, 2020. The last extension was up to March 31, 2019,” he said. Till December 30 this year, around 3,39,713 beneficiaries have availed the CLSS under the PMAY (Urban), the minister said. According to the ministry, the CLSS for the MIG, launched originally for 12 months till December 31, 2017, covered beneficiaries seeking housing loans for acquisition or construction of houses (including re-purchase) from banks, housing finance companies and other such notified institutions. Later, the ministry issued a statement, stating, “The proposal for extension of the scheme was considered based on the inputs from various stakeholders in the month of October 2017, and was accorded approval for extension by 15 months, i.e up to March 31, 2019.” Under the CLSS, the MIG beneficiaries with an annual income of above Rs 6 lakh and up to Rs 12 lakh would get an interest subsidy of four per cent on a 20-year loan component of Rs 9 lakh. "This is a welcome New Year Gift, it will benefit the Middle Income  Group (MIG) home seekers the most. This will also create a positive impact for the 'Housing for All' initiative," said Dr NiranjanHiranandani, President (National), NAREDCO to Realty Plus. "We estimate one lakh beneficiaries by March 2019, and possibly 2 lakh more beneficiaries by March 2020. This extension up to March 31, 2020 has the potential to help make many a dream home into a reality," concluded Dr NiranjanHiranandani. Those with an annual income exceeding Rs 12 lakh and up to Rs 18 lakh would get interest subsidy of three per cent.