The Indian government announces a Credit-Linked Interest Subsidy (CLSS) scheme on the home loans taken by middle-income group (MIG: annual income Rs 6 lakh to Rs 18 lakh). The scheme will be effective from January 1.
Under the CLSS scheme for middle-income group, a subsidy rate of 4 per cent will be applicable on the housing loans up to Rs 9 lakh for the people with an income of Rs 12 lakh per annum and the income group of Rs 18 lakh per year will get 3 per cent of subsidy on the interest for the home loan up to Rs 12 lakh.
Also, EMIs is going to decrease by over Rs 2,000 per month. The 4 per cent of subsidy on the home loan interest will cut down the EMIs by Rs 2,062 per month whereas 3 per cent interest subsidy will reduce the monthly outgo by Rs 2,019.
The scheme is applied for those whose loans are sanctioned and applications are under consideration since the beginning of 2017 i.e. January 1. The eligible applicants or home buyers can receive the interest subsidy of up to Rs 2.35 lakh.
“The middle-income groups made a substantial contribution to the economic growth of the country, besides paying taxes and deserved support to fulfil the dream of owning a house which is a basic and genuine aspiration,” says Venkaiah Naidu, Housing and Urban Poverty Alleviation Minister.