Credit link subsidy scheme on home loans for MIG extended till March 2020

• The Minister for Housing and Urban Affairs Hardeep Singh Puri has stated that the loan subsidy for the middle-cash flow team under Pradhan Mantri Awas Yojana, (PMAY) has been prolonged until 31st March 2020.

• The Minister mentioned that far more than Rs 6900 cr desire subsidy on housing financial loans has been disbursed to about 3.14 lakh beneficiaries of Credit history Connected Subsidy Scheme (CLSS) beneath Pradhan Mantri Awas Yojana (Urban).

Credit Joined Subsidy under PMAY-Urban

• The Credit history Linked Subsidy Plan (CLSS) is an ingredient below the PMAY-Urban. Underneath the plan, the central govt presents desire subsidy or invest in/construction/extension/enhancement of a residence to cater Economical Weaker Portion(EWS)/Reduce Profits Team(LIG)/Middle Revenue Groups (MIG).

• The CLSS is being implemented by two central nodal businesses in India, particularly Housing Urban Enhancement Corp and Nationwide Housing Bank. The CLSS is prepared as demand from customer-side intervention to grow institutional credit circulation to the housing needs of the city bad.

• The CLSS is the only central scheme underneath the PMAY-Urban and the remaining ones are implemented as sponsored schemes.

For Center-Revenue group

• CLSS for Center-Income team covers two cash flow segments in the MIG viz. Rs.6,00,001 to Rs.12,00,000 (MIG-I) and Rs.12,00,001 to Rs.18,00,000 (MIG-II) for every annum.

• For MIG-I, an interest subsidy of 4% has been presented for financial loan quantities up to Rs.9 lakh and for MIG-II, a desire subsidy of 3% has been presented for mortgage amount up to Rs.12 lakh. Housing loans beyond Rs. 9 lakh and Rs. 12 lakh will be at non-subsidized fees.

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Mains Paper 3: Economy

Prelims level: Credit link subsidy scheme

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