The credit linked subsidy scheme has been favourably encouraging the first-time homebuyers and is providing the much-needed support to the real estate sector. The demonetization, the beginning of GST, the RERA law and now the Covid-19 pandemic has made drastic changes in the various sectors. But now there, we can expect good news too — CLSS has been extended.
To bring back the confidence in the real estate market, the Central government has taken some steps in the last six years. The RERA has been drawn to regulate and bring transparency in the sector. The government also took many steps to boost housing demand through the lower GST rate of one per cent for affordable housing.
CLSS is one of those initiatives and was launched in June 2015 to provide first-time homebuyers in the categories of Economically Weaker Class (EWS), Lower Income Group (LIG) and Middle Income Group (MIG) with interest subsidies of up to Rs 2.7 lakh. It has been a significant catalyst for creating demand for housing units, mostly below Rs 50 lakh in the suburbs of major cities or Tier II and Tier III cities.
According to the government, the continuation of the CLSS to the MIG group is projected to benefit 2.5 lakh, middle-income families, by March next year in the current fiscal year. This will also result in an investment of more than Rs 70,000 cr in the housing sector. Low interest rates on home loans at around 7%, combined with stable house prices over the last few years, have made the purchasing of residential properties an attractive proposition.
Who’s Eligible?
The scheme applies to those who do not own a pucca house of their anywhere in India. Second, the subsidized interest rates differ depending on the annual revenue, the length of the loan and the amount of the loan.
(MIG I)- The interest subsidy is 4% on a 20-year loan. It should be noted that, regardless of the amount of the loan, the support is available up to the loan amount of Rs 9 lakh or the actual amount of the loan, whichever is lower. So, if you are in the MIG I category and take a home loan of Rs 11 lakh, the grant will be calculated on Rs 9 lakh. The interest of the lender will refer to the remaining Rs 2 lakh.
(MIG II category)- Homebuyers in category MIG II will make use of interest subsidies of 3% on the 20-year loan plan for a loan amount of up to Rs 12 lakh even if the actual amount is higher. This means that additional loans above the defined cap would attract non-subsidized rates.
How does it work?
When you apply for the subsidy, once approved, the eligible amount gets credited immediately to your loan account. This reduces your total loan amount, which in turn decreases your monthly instalments (EMIs).
How is it beneficial to the users of Migsun?
Migsun, being one of the best property developers, that has been continuously working on the quality, technology, modifications & hence providing outstanding real estate solutions to the customers in residential, commercial, hospitality sectors. Migsun has always been supporting the PMAY, i.e. the Pradhan Mantri Awas Yojana which is the scheme launched by Hon. PM under the notion- ‘Home for All’. Migsun has few of its projects which fall under the PMAY scheme. Migsun Roof, Migsun Twiinz, Migsun Kiaan, etc. are few of them. For more details, click- www.migsun.in The CLSS scheme may be used to purchase a developed property or to build a house using a loan. The process for applying for a subsidy is reasonably simple, but the final amount of the subsidy to your loan account may take two to four months. One can take the support of the lending institution from which the home loan has to be applied for the CLSS.
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