Pune, Maharashtra, India:  Pradhan Mantri Awas Yojana or PMAY, a well-known government housing scheme, was initially instated to serve Indian homebuyers with limited financial means. However, owing to the positive response that the scheme attracted, reforms were made and it was extended to all sections of society. One of the most important ways you can benefit from PMAY is by availing a subsidy on your home loan interest rate. You can get this based on your income and other eligibility criteria.  
 
Bajaj Housing Finance Limited (BHFL), a 100% subsidiary of Bajaj Finance Limited is offering convenient and affordable Home Loans which are designed to fulfil all your mortgage financing needs. Here’s all about the Credit Linked Subsidy Scheme (CLSS) and how you can make use of it.
 
What is the home loan subsidy scheme
As per the guidelines of the Pradhan Mantri Awas Yojana, the government has tied-up with a list of reputable financial institutions. These partner lenders sanction home loans and allow you to claim subsidy if you qualify for CLSS. Bajaj Housing Finance Limited is one of the most reputed lenders, offering a Home Loan of up to Rs. 3.5 crore coupled with PMAY benefits based on your eligibility criteria to prospective homeowners.
 
When you choose Bajaj Housing Finance Limited, not only can you avail of a low-interest top-up loan, but you can also enjoy the property search assistance Flexi-loan facility, doorstep document pickup and more! As an eligible beneficiary for this scheme, you can claim interest subsidy of up to 6.5% on your home loan interest based on your eligibility criteria and maximize your savings.
 
Qualifying for the Credit Linked Subsidy Scheme
You qualify for the Credit Linked Subsidy Scheme offered by PMAY based on certain parameters. To get started, take a look at the category your annual household income puts you in.

• EWS: Your household income in a year should be below Rs. 3 lakh
• LIG: Your household income in a year should be within Rs. 3­–6 lakh
• MIG 1: Your household income in a year should be within Rs. 6–12 lakh
• MIG 2: Your household income in a year should be within Rs.12–18 lakh
   

Based on your income, here’s the subsidy that you can enjoy:

• You can get a credit-linked subsidy of 4% for loans up to Rs. 9 lakh if you belong to MIG 1 category
• You can get a credit-linked subsidy of 3% for loans up to Rs.12 lakh if you belong to MIG 2 category
• You can get a credit-linked subsidy of 6.5% for loans up to Rs. 6 lakh if you belong to EWS or LIG category
   

How does CLSS work
Once a lender like Bajaj Housing Finance Limited (BHFL) sanctions a loan under PMAY, you are eligible to claim a subsidy for up to 20 years. This period can extend up to 30 years, provided your age at the end of the tenor is less than 70 years based on your eligibility criteria. Here is an example to show how CLSS works in the case of PMAY.
 
Suppose you take a home loan of Rs. 9 lakh and fall under the EWS category. Then, basis your eligibility for CLSS, you can claim a 6.5% subsidy on only Rs.6 lakh based on your eligibility criteria. So, during repayment of the loan, you pay normal EMIs on Rs. 3 lakh and enjoy subsidy for the remaining Rs. 6 lakh. You can use the PMAY eligibility calculator to know the amount of subsidy on your loan in advance, which in this case will amount to Rs. 2,67,280.
 
Apart from the subsidy, PMAY also has other goals, such as promoting the use of eco-friendly building material, encouraging home-ownership for women belonging to the LIG/EWS and rural segments and making ground floor accommodation for the senior citizens compulsory. Knowing everything about the scheme in advance will help you become a homeowner with greater ease. So, keep these points in mind and start your journey of buying a home today. Before you apply, check your pre-approved home loan offer for instant approval and accelerated disbursal!