It would be beneficial for you to know here that there are 4 categories of people who can avail benefits under CLSS (Credit-linked Subsidy Scheme) of the PMAY (Pradhan Mantri Awas Yojana): People in the EWS category (annual household income up to Rs 3 lakh), LIG category (annual household income up to Rs 6 lakh), MIG-I category (annual household income up to Rs 12), and the MIG-II category (annual household income up to Rs 18 lakh).
However beneficiaries of the Economically Weaker Section (EWS) and Low-income Group (LIG) seeking house loans from banks, housing finance companies (HFCs), and other such institutions will be eligible for an interest subsidy at the rate of 6.5%, or during tenure of loan, whichever is lower.
Even interest subsidy will be credited to the loan account of the beneficiaries through the lending institutions resulting in reduced effective housing loan and EMIs.
However “The finance minister’s announcement of a dedicated Affordable Housing Fund (AHF) in the National Housing Bank (NHB), funded from priority sector lending short fall and fully serviced bonds, authorized by the government of India, is a welcome decision. This will help in achieving the vision of ‘Housing for all by 2022’,” Niranjan Hiranandani, president of Naredco, said. Thinkstock