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Credit Linked Subsidy Scheme(CLSS) for Middle Income Group

By gkkedia Dt. May 20th, 2020

What is Credit Linked Subsidy Scheme.
The Government of India launched a scheme that would help the financially– deprived population living in urban areas get a roof over their heads Known as the Pradhan Mantri Awas Yojana ,it envisages affordable housing for all, by giving borrowers the financial means necessary for purchasing a home via subsidy on the home loan rates .Credit Linked Subsidy Scheme (CLSS) is a component of PMAY under which, not only economically weaker sections , but also middle income groups can avail of home loans at reduced EMIs

Middle Income Groups.
This category of beneficiaries is split into two sections:

  • The first section includes people whose household income per year ranges from 6 lakhs to 12 lakhs and for them carpet area of houses is upto 160 square metres.
  • The second section include those whose household income per year ranges from 12 lakhs to 18 lakhs and carpet area of houses is upto 200 squares metres.

 
Housing Subsidy for Middle Income Group Extended Till March 2021.
As on 14 May 2020, The Finance Minister Nirmala Sitharaman announced a Rs 70,000 crore boost to the housing and construction sectors that have been affected by the coronavirus outbreak and lockdown, by extending an interest subsidy scheme meant to help middle class families build or purchase a house.

Ms Sitharaman, unveiling the second tranche of Prime Minister Narendra Modi’s Rs 20 lakh crore stimulus package for a coronavirus-hit economy, said a credit-linked subsidy scheme for middle-income groups that had been operationalised in May 2017 and expired on 31 March 2020 would be extended by 12 months to March 2021.

Ms Sitharaman, unveiling the second tranche of Prime Minister Narendra Modi’s Rs 20 lakh crore stimulus package for a coronavirus-hit economy, said a credit-linked subsidy scheme for middle-income groups that had been operationalised in May 2017 and expired on 31 March 2020 would be extended by 12 months to March 2021.

This scheme had already benefitted 3.3 lakh families. The extension by 12 months will benefit another 2.5 lakh middle income families and thus generating a sudden demand of the raw material for housing sector i.e. steel, cement, transportation and construction-related materials and activities. This move will also generate various employment opportunities for the people.

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