The central government has taken a decision to provide relaxation for those who are taking home loan under Credit Linked Subsidy Scheme (CLSS) of Pradhan Mantri Awas Yojana (PMAY). The government has extended the loan period of CLSS-PMAY from 15 year to 20 years. Besides this, the government has also introduced a new CLSS scheme for the people belongs to middle income group with a provision of Rs 1,000 crore in 2017-18.
According to the source the scheme will be renamed as CLSS for EWS and LIG; EWS refers to economical weaker section and LIG means lower income group. Along with this, the cabinet has also approved the introduction of a new Credit-Linked Subsidy Scheme for (MIG) Middle Income Group.
Under Pradhan Mantri Awas Yojana, the government has planned to build around 1 crore houses by 2019 for homeless people, for allocation has been raised from Rs. 15,000 crore to Rs. 23,000 crore.
The government has also allowed primary lending institutions (PLIs) that have signed MoU with central nodal agencies (CNAs), under the CLSS vertical of PMAY (Urban) (now CLSS for EWS/LIG), the option to extend the mandate of their MoU to CLSS for MIG with appropriate changes as applicable.
It also cleared the proposal for rationalising or introducing the processing fees payable to the PLIs for the loans sanctioned under these schemes.
According to the source, the government has allocated an amount of one thousand crore for Budget-2017-18 at BE (budget estimates) stage for the proposed CLSS scheme for MIG. It also approved issuance of operational guidelines for CLSS for MIG with approval of the minister-in-charge.
The main objective of the scheme is to add the MIG category along with EWS and LIG in the circle of benefits of Pradhan Mantri Awas Yojana (Urban)– Housing for All Mission.
The outreach will ensure greater participation among the EWS, LIG and MIG segments to provide Housing for All by 2022, ensuring equity and inclusiveness.
After the satisfaction on the eligibility criteria of applicant, the interest subsidy will be disbursed to their home loan account through due diligence by PLIs.