Here is some good news for middle-income home-buyers. The Centre announced on Wednesday a credit-linked interest subsidy (CLSS) scheme for home loans, leading to savings of more than ₹2 lakh, or up to ₹2,000 on EMIs.
Union Housing and Urban Poverty Alleviation Minister M. Venkaiah Naidu released the operational guidelines of the CLSS (Middle Income Group) here on Wednesday. Those with annual incomes between ₹6 lakh and ₹18 lakh are eligible for the subsidy. Those who have been sanctioned housing loans and whose applications are under consideration since January 1 are also eligible for interest subsidy, Mr. Naidu said.
Prime Minister Narendra Modi had announced an interest subsidy of 4% on housing loans of up to ₹9 lakh for those with an income of ₹12 lakh a year and of 3% on loans of up to ₹12 lakh on those earning up to ₹18 lakh a year. The loan tenure is up to 20 years. The total interest subsidy will be paid up front in one go, reducing the EMI burden.
