Pradhan Mantri Awas Yojana: The Credit Linked Subsidy Scheme (CLSS)

pradhan mantri housing scheme

The ‘Pradhan Mantri Awas Yojana (PMAY) (Urban) – Housing for All’ was announced by the honorable Prime Minister, Shri Narendra Modi, on 17th June 2015. Under the PMAY, the government aims to deliver pucca or permanent houses for people by 2022. The houses delivered under this scheme will be provided with amenities including water facility, sanitation, and round-the-clock electricity supply.

Having a place to live is a primary necessity for every human being. However, considering the rising property prices, it is not possible for everyone to afford buying a house. Especially for the financial weaker sections of the society, buying a house has become nothing but a far-fetched dream. In view of this situation, the Honorable Prime Minister of India launched the Pradhan Mantri Awas Yojna or PMAY in June 2015 to provide affordable housing to all.

PMAY can be divided across four verticals, namely:

  • Slum Rehabilitation
  • Credit Linked Subsidy Scheme (CLSS)
  • Affordable housing, in partner with private & public sectors
  • Subsidy for beneficiary-led individual house construction

Benefits of PMAY Credit Linked Subsidy Scheme (CLSS)

  1. Housing for everyone
    The PMAY CLSS scheme has been intended to offer houses for everyone, provided with all basic amenities. The scheme has been launched to provide permanent houses at subsidized rates to people who cannot afford buying a house. There are different income slabs for people to be eligible for the PMAY scheme.
  2. Development of the nation
    The PMAY and other such housing schemes launched by the government will not only benefit the people of the country, but also help in the development of the nation as a whole. With the launch of such big housing projects, India’s real estate sector will get a boost and will also lead to industrialization.
  3. Subsidy
    The most important benefit of PMAY is the rate of subsidy that will be given to the people who are eligible under the scheme. In PMAY, nearly 6.5% subsidy will be given to the individual, which will in turn leads to a huge reduction in the monthly installments of a home loan. However, the subsidy rates will vary according to the section of the society the applicant belongs to.

This scheme was originally launched for the people who fall under the Economically Weaker Sections (annual income up to ? 3 lakh) and the Lower Income Group (annual income up to ? 6 lakh) in the country, but now, PMAY also covers the Mid Income Group. To be eligible for the PMAY scheme, there are certain eligibility conditions that are required to be met.

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