To boost its mission of "Housing for all by 2022", government in its annual budget for the FY 2017-18 extended CLSS or Credit Linked Subsidy Scheme, which is part of the Pradhan Mantri Awas Yojana (PMAY) to Middle Income Group (MIG). The scheme which earlier targeted only the economically weaker section (EWS) and lower income group (LIG) offers an interest subsidy of a maximum of 6.5% p.a on home loan for first-time home buyers both for purchasing as well as construction.
And to better understand if you are eligible to avail the interest subsidy under CLSS, HDFC Red, a subsidiary company of HDFC Ltd. that provides home buying services on an online platform introduced the CLSS calculator.
Commenting on the launch, Sohel I S, Chief Executive Officer, HDFC RED, said, "The guidelines and complex intricacies of the scheme can be quite perplexing for a common man. With this calculator, we want to make the scheme more comprehensible and thereby maximize its advantage. We want to enable widespread education of the scheme and encourage our users to help others who may not have access to the internet or are financially non-savvy. This initiative fosters our commitment to contribute to the government's "Housing for All mission".
The calculator simplifies the government-backed CLSS scheme and requires the user to enter the following details:
1. His or her marital status
2. Household income (household includes you, your spouse and unmarried children) that needs to be given on an individual basis
3. Whether you or any other household member owns a house or not.
4. Have you availed any previous Central housing scheme
Suppose you are a married individual with 3 family members; you, your wife and a young daughter who do not own a house. And make an earning of Rs. 13 lakhs on an annual basis while your wife earns Rs. 3 lakhs then you qualify for the interest subsidy to the tune of 3% and fall under the Middle Income Group 2 or MIG2 category. The savings on the home loan can be to the extent of Rs.2,30,156.
So, with the data provided, you can come to know, whether you as an individual or household are eligible under the scheme or not. You fall in which income group category as part of the scheme and the extent of interest subsidy and savings you can avail. Read more on interest subsidy terms and conditions for MIG, here.