The credit linked subsidy scheme has been\nfavourably encouraging the first-time homebuyers and is providing the\nmuch-needed support to the real estate sector. The demonetization, the\nbeginning of GST, the RERA law and now the Covid-19 pandemic has made drastic\nchanges in the various sectors. But now there, we can expect good news too \u2014\nCLSS has been extended. <\/p>\n\n\n\n
To bring back the confidence in the real\nestate market, the Central government has taken some steps in the last six\nyears. The RERA has been drawn to regulate and bring transparency in the\nsector. The government also took many steps to boost housing demand through the\nlower GST rate of one per cent for affordable housing.<\/p>\n\n\n\n
CLSS is one of those initiatives and was\nlaunched in June 2015 to provide first-time homebuyers in the categories of\nEconomically Weaker Class (EWS), Lower Income Group (LIG) and Middle Income\nGroup (MIG) with interest subsidies of up to Rs 2.7 lakh. It has been a\nsignificant catalyst for creating demand for housing units, mostly below Rs 50\nlakh in the suburbs of major cities or Tier II and Tier III cities.<\/p>\n\n\n\n
According to the government, the\ncontinuation of the CLSS to the MIG group is projected to benefit 2.5 lakh,\nmiddle-income families, by March next year in the current fiscal year. This\nwill also result in an investment of more than Rs 70,000 cr in the housing\nsector. Low interest rates on home loans at around 7%, combined with stable\nhouse prices over the last few years, have made the purchasing of residential\nproperties an attractive proposition. <\/p>\n\n\n\n
Who’s Eligible? <\/strong><\/p>\n\n\n\n The scheme applies to those who do not own\na pucca house of their anywhere in India. Second, the subsidized interest rates\ndiffer depending on the annual revenue, the length of the loan and the amount\nof the loan. <\/p>\n\n\n\n (MIG\nI)-<\/strong> The interest subsidy is 4% on a 20-year loan.\nIt should be noted that, regardless of the amount of the loan, the support is\navailable up to the loan amount of Rs 9 lakh or the actual amount of the loan,\nwhichever is lower. So, if you are in the MIG I category and take a home loan\nof Rs 11 lakh, the grant will be calculated on Rs 9 lakh. The interest of the\nlender will refer to the remaining Rs 2 lakh.<\/p>\n\n\n\n (MIG\nII category)-<\/strong> Homebuyers in category MIG II will\nmake use of interest subsidies of 3% on the 20-year loan plan for a loan amount\nof up to Rs 12 lakh even if the actual amount is higher. This means that\nadditional loans above the defined cap would attract non-subsidized rates.<\/p>\n\n\n\n