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This page is written by an independent website. It is not affiliated with the Government of India. Always apply through the official government website linked below.
Simple Overview
The Credit Linked Subsidy Scheme (CLSS) is part of PM Awas Yojana Urban. When you take a home loan, the government pays a part of your interest upfront, which is credited directly to your loan account. This reduces your outstanding principal immediately, making your monthly EMIs lower from the very first month.
Who Can Apply?
- First-time home buyers in EWS, LIG, MIG-I, or MIG-II income categories
- Family must not own a pucca house anywhere in India
- Family must not have previously received housing benefits under any government scheme
- For MIG categories, preference for women, SC/ST, transgender, and differently-abled applicants
Income Limits
EWS: up to ₹3 lakh (6.5% subsidy) | LIG: ₹3–6 lakh (6.5% subsidy) | MIG-I: ₹6–12 lakh (4% subsidy) | MIG-II: ₹12–18 lakh (3% subsidy)
Required Documents
- Aadhaar Card (all adult family members)
- Income proof (salary slips, ITR, or income certificate)
- Self-declaration of no pucca house owned by family
- Property documents (sale agreement, NOC, building plan approval)
- Bank account passbook
Step-by-Step Application Process
- 1Choose an empanelled bank or HFC
Apply at any bank or Housing Finance Company (HFC) empanelled under PMAY-CLSS. Most major banks (SBI, HDFC, Axis, PNB) participate.
- 2Declare your income category
When applying for the home loan, declare you want PMAY-CLSS. State your income category (EWS/LIG/MIG) and confirm no pucca house ownership.
- 3Bank submits claim to NHB/HUDCO
The bank verifies eligibility and sends the subsidy claim to the National Housing Bank (NHB) or HUDCO.
- 4Subsidy credited to your loan account
Once approved, the subsidy is credited directly to your home loan account, reducing the outstanding principal and your future EMIs.
Benefits of the Scheme
- EWS/LIG families save up to ₹2.67 lakh on home loan
- MIG-I families save up to ₹2.35 lakh
- MIG-II families save up to ₹2.30 lakh
- Lower EMIs from day one of the loan
- Can be used for new construction, purchase, or renovation
Common Mistakes to Avoid
- Not informing the bank about CLSS at the time of applying for the loan — it cannot be applied retrospectively
- Exceeding the eligible carpet area for your category — disqualifies the application
- Using incorrect combined income — all family members' incomes must be added together
Frequently Asked Questions
Visit the official government website to start your application. It is free and takes only a few minutes to begin.
🌐 Apply on Official Website