Things First-Time Home Buyers Should Know About CLSS Under PMAY

The CLSS or credit linked subsidy scheme is a part of the PMAY initiative. Under CLSS, the government of India aims to provide interest subsidy on home loans to eligible beneficiaries. Read on to know more about it.

India has one of the biggest populations of homeless people in the world. Studies suggest that nearly 78 million people have no safe shelter. And, to address this massive crisis, the government of India launched the Pradhan Mantri Awas Yojana or PMAY under its ‘Housing for all’ mission in June 2015.

Under the scheme, the government of India aims to build more than two crore new affordable housing units in various rural and urban locations. Also, under the scheme, the government aims to empower the poor and the people from the lower income groups to become homeowners by offering them interest subsidy on home loans. The monetary aid is extended through the CLSS (Credit Linked Subsidy Scheme) wherein the government has partnered with various financial organisations to roll out the subsidy to eligible beneficiaries.

If you are a first-time home buyer, and are looking to avail the home loan interest benefit under CLSS, here are a few important things you must know about the scheme.

Who can be the beneficiary?

As per the CLSS mandate, a beneficiary family must consist of a husband, wife, and unmarried children. However, an earning adult, irrespective of their marital status can be a beneficiary.


To be eligible for the CLSS benefits under PMAY, you must meet the following requirements.

  •         You or any of your family members must not own a permanent house in any part of India.
  •         If you are married, you can apply for a home loan subsidy benefit individually or apply for a joint loan with your spouse. But, you will be eligible only for a single subsidy.
  •         You are any of your family members should not have availed monetary support from any of the state or central government affordable housing schemes.

Income limit for availing the subsidy benefit

To ensure that every beneficiary gets maximum subsidy benefit, the government of India has categorised the people based on their income. The income groups are EWS (Economically Weaker Section), LIG (Lower Income Group) and MIG I and II (Middle Income Group).

If you are applying for a subsidy under EWS, the annual household income should not be more than three lakhs. For LIG, the maximum income limit is Six lakhs per annum and for MIG I and MIG II it is 9 lakhs and 12 lakhs respectively.

Subsidy is available for people for all

The CLSS benefits are extended to all the statutory towns as per the 2011 census and other towns notified as statutory towns subsequently. In other words, no matter which part of India you reside, chances are high that you will be eligible to avail the CLSS benefits.

Maximum CLSS amount you can avail

The CLSS subsidy you get depends on the income group you belong to, and it varies from 2.30 lakhs to 2.67 lakhs. If you apply for the subsidy under EWS and LIG income category, the maximum subsidy you can get is 2.67 lakhs. For MIG I and MIG II groups, the maximum subsidy available is 2.35 lakhs and 2.30 lakhs respectively.

Other important things

You can avail home loans under CLSS for buying a new home, constructing a flat on the piece of land you own, and for adding a new toilet, bedroom or kitchen to your existing home.

Final Word

The home loan interest subsidy offered under PMAY has helped thousands of beneficiaries become homeowners. Make sure that you know every detail of CLSS and make the most out of it.