Pradhan Mantri Awas Yojana – CLSS Scheme for EWS


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 Scheme for EWS, 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%.

pmay clss scheme

The subsidized loan was earlier available for 15 years but the government is now offering the loan for 20 years. The scheme is divided into phases. First phase of the plan completed in March 2017 and the second phase has started. To take the advantage of the CLSS Scheme the applicant must adhere to the Pradhan Mantri Awas Yojana Guidelines.

The candidates thus considered eligible, can enroll and avail the benefit of the scheme. To apply they can either follow the offline procedure or the online process. The candidates can even register at CSCs established at various places across the nation. The candidates are required to submit all their documents at these centers along with the minimum registration of Rs. 25 and service tax.

However, no registration fee is charged for online registration. The registration can be made through pradhan mantri awas yojana official website. For offline application there is a demand survey by the local urban bodies/ gramin sabha. After the survey the verification process will start and then registration will begin.

The application form comprises of the following fields that are to be necessarily filled by the applicant:

  • Name of the applicant
  • Contact Details
  • Gender
  • Date of Birth
  • Category
  • Annual Income
  • Aadhar Number
  • BPL certificate details
  • House loan details

The applicants have to provide the mandatory documents along with the application form. Aadhar Card is must and all applicant have to submit it. Beside it, the applicant has to provide BPL certificate, income certificate identity proof and address proof.

The benefit of CLSS EWS Scheme can be taken only by the eligible candidates. The eligibility criteria as defined by the authorities is 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.

Details of Subsidy and Loan

  • Maximum loan amount: As per eligibility of customer decided by Bank / Financial Institution based on due diligence
  • Maximum loan tenure : based on the guidelines of the PLI
  • Maximum tenure for subsidy computation: 20 years or the tenure of the loan, whichever is lower
  • Maximum loan amount for subsidy calculation: Rs. 6 lakh
  • Interest rate for subsidy : 6.5%

The subsidized loan rates is to help the low income group have a pucca house in their name. By 2022, the government is planning to provide 2 crore houses in urban and rural areas. The scheme was launched by Prime Minister Narendra Modi. It now covers middle income group as well apart from low income group and economically weaker section. Under this scheme, the applicant take a home loan at subsidized rates. The reduced interest rate will help people lower their EMI and deduce the repayment burden. However, to avail the benefit of the scheme there are certain guidelines that are to be kept in mind.

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