Is It Your Dream to Own a House? Your Dream is About to Come True

The middle-income groups are often neglected when the government brings up any welfare scheme. But things have turned around for good with the introduction of interest subsidy scheme on housing loans which will benefit the large number of middle-class families in India. 

If you are still living in a rented house and your income is between 6 to 18 lakhs per annum, good news is in store for you. Read through the article to know more about it. 

Credit Linked Subsidy Scheme(CLSS)

Under Credit Linked Subsidy Scheme, interest subsidy will be credited upfront to loan account of the beneficiary through primary lending institutions. As a result, the beneficiary will have reduced house loan amount and Equated Monthly Instalment(EMI). 

The middle-income groups whose annual earning is between 6 to 12 lakhs will get 4% of interest subsidy for the loan amount up to 9 lakhs. For the individuals whose income falls between 12 to 18 lakhs will get 3% of interest subsidy for the loan amount up to 12 lakhs. 

The Net Present Value (NPV) will be calculated at the rate of 9% over the maximum tenure of 20 years or lesser. The interest subsidy scheme will not be applicable for the housing loans above 9 lakhs and 12 lakhs. 

Eligibility Criteria

The beneficiary or his family members should not own a pucca house anywhere in India. 

Other assistance availed under any housing scheme from the government makes your ineligible for interest subsidy scheme. 

Widows, single working women, differently abled, transgenders and individuals belonging to SC/ST/BC will be given preferences. 

For those earning up to 12 lakhs, the interest subsidy is provided for construction of acquisition of a house with a carpet area up to 90 sqm and for up to 18 lakhs, it is 110 sqm. 

How to Apply for The Credit Linked Subsidy Scheme

The eligible candidates can approach any lending institution and avail a home loan. Additional loan beyond the specified limits will not be subsidized. After the loan being sanctioned, you can claim the subsidy from the nodal agencies i.e. National Housing Board (NHB) and Housing and Urban Development Corporation (HUDCO). 

Your Aadhaar card is mandatory for claiming the subsidy on the home loan. 


The government's initiative to provide an interest subsidy will boost the real estate sector as well as give an affordable housing for all. Be informed about the scheme and reap its benefits to the maximum.

If you are looking for a housing loan with the better interest rate, click here to check your eligibility.