CLSS EWS Scheme – A Government Initiative to Provide Own House


The citizen of the country can now fulfill the aspiration of owning a pucca house. The Prime Minister, Shri Narendra Modi announced to grant subsidy on home loan to the economical weaker section of the society and lower income group under Pradhan Mantri Awas Yojana.

The scheme was launched last year and has been updated for the year 2017. Under the Credit Linked Interest Subsidy Scheme for Economically Weaker Section or CLSS EWS Scheme, the beneficiaries seeking housing loans from banks, housing finance companies and other such institution will be eligible for an interest subsidy at the rate of 6.5%. The subsidized loan was earlier available for 15 years but the government is now offering the loan for 20 years.

The credit linked subsidy will be provided only for the loan amounts up to Rs. 6 lakhs and on additional loan amount beyond 6 lakhs the customer will not get the benefit of subsidized rate. The interest subsidy on the credit facility will be credited to the loan account of the payee through Primary Lending Institute. This will lead to lower effective housing loan repayment and reduce the amount of monthly installment.  The value of discount that is, Net Present Value  (NPV) will be calculated at the discounted rate of 9%.

The loan for construction will be sanctioned only if the carpet area of the house being constructed or enhanced under this component of mission is up to 30 square meters. The extension shall be within the area limit of 30 sq. meters. Whereas, the LIG category is permitted to extend the housing/ extension to 60

This subsidy is given to the candidates considered eligible as per the prescribed criteria. For availing the loan the applicant has to comply on the norms mentioned below:

  • The house constructed or purchased with central assistance under the mission should be in the name of the female head of the household. Else it should be in joint name of male head of the household and his wife. It is only in the absence of the adult female member in the house that the house can be in name of the male member.
  • The family should comprise of husband, wife and their unmarried children.
  • The loan applicant should not have a possession of pucca house either in his/her name or in the name of any other member of his/her family in any part of the country.
  • The facility can be availed by the EWS household having annual income of up to Rs. 3 lakhs
  • The preference under the scheme should be given to manual scavengers, women with high consideration to widows, people belonging to scheduled castes, scheduled tribes, other backward classes, minorities, persons with disabilities and transgenders.

The Pradhan Mantri Awas Yojana (PMAY CLSS EWS) aims at providing housing for all. This mission for urban area is being implemented during 2015-2022. It will provide central assistance to implementing agencies through States and UTs for providing houses to all eligible families by 2022. It is a centrally sponsored scheme except for the component of credit linked subsidy that will be implemented as a Central Sector Scheme.

The coverage of the scheme will be in all statutory towns as per Census 2011 and towns notified subsequently will also be eligible for coverage under the mission.  The urban local bodies should ensure that individual houses under CLSS should have provision for basic civic services such as water, sanitation, sewage, road, electricity and so on.

The houses acquired or constructed should conform to the standards provided in National Building Code (NBC). It should be designed and constructed in a way that it meets the requirement of structural safety against earthquake, flood, cyclone, landslides etc. conforming to the National Building Code and other relevant Bureau of Indian Standards (BIS) codes.

Thus, apart from providing permanent shelter, the CLSS EWS scheme ensures a safe and secure roof to the citizen who belong to economically weak background. The Government initiative ensures that each citizen has his own house (ghar ho apna).

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