6.5% Interest Subsidy on Home Loan Upto 6 Lakh

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6.5% interest subsidy on small ticket house loan available from central government.

  1. It is CLSS (Credit linked Subsidy Scheme) under PMAY ( Pradhan Mantri Awas Yojna)
  2. This subsidy is for Urban poor in EWS (economically weaker sections) whose total income along with family income does not exceed Rs. 3 lakhs and for LIG (Lower Income Group) people with income (including family’s income) ranging from 3 lakh to 6 lakh per annum.
  3. If the family owns any other house then it would not be eligible for subsidy on loan for 2nd house.
  4. Subsidy of 6.5% on interest on home loan would be available. If a person eligible as per above discussed conditions takes a home loan of 10 lakhs @ 9.5% :-

Then situation will be as follows:-

Full rate of interest                                                         = 9.5%

Subsidy on interest                                                         = 6.5%

Rate of interest upto 6 lakh loan                                  = 3.5%

Rate of interest on remaining 4 lakhs loan                 =9.5%

  1. Loan tenure should not be more than 15 years.
  2. Loan may be taken from any of the scheduled/ nationalized/private bank or housing loan companies etc.
  3. For EWS – max size of flat 30 sq. meter – max loan eligible for subsidy 3 lakhs

    For LIG – max size of flat 60 sq. meter – max loan eligible for subsidy 6 lakhs

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