Table of Contents

• Understanding Eligibility Criteria

• How to Apply for CLSS

  • Documents Required for CLSS Application

• Tracking CLSS Application Status

• Benefits of CLSS

• FAQs

  • What is the maximum interest subsidy I can get under CLSS?

  • What documents do I need to apply to CLSS?

• Conclusion

Credit Linked Subsidy Scheme (CLSS) | How to Apply?

The Credit Linked Subsidy Scheme, or CLSS, falls under Pradhan Mantri Awas Yojana (PMAY) and is directly implemented by the government.  The scheme is introduced to increase institutional credit flow so that the economically disadvantaged segment of the urban population can meet their housing needs quickly. The Government of India will provide eligible EWS/LIG beneficiaries with a credit-linked interest subsidy of 6.50% for 20 years or the actual tenor of the loan, whichever is lower, under this scheme. Read on to learn more about the scheme and how to apply it.

Understanding Eligibility Criteria

CLSS provides interest subsidies on home loans to Economically Weaker Sections (EWS) and Low-Income Groups (LIG) with annual household incomes up to Rs 6 lakhs. They are eligible for a maximum carpet area of 60 sq m, an interest subsidy of 6.5% on loan amounts up to Rs 6 lakhs, and a maximum subsidy of Rs 2.67 lakhs.

For the Middle Income Group (MIG) 1 category, with household incomes between Rs 6-12 lakhs per annum, the maximum carpet area is 160 sq m. They can avail an interest subsidy of 4% on a loan of up to Rs 9 lakhs, with a maximum subsidy of Rs 2.35 lakhs.

The MIG 2 category includes households with incomes between Rs 12 and 18 lakhs annually. They are eligible for a maximum carpet area of 200 sq m, an interest subsidy of 3% on loan amounts up to Rs 12 lakhs, and a maximum subsidy of Rs 2.30 lakhs under CLSS.

The tiered structure aims to expand housing access and promote affordable home ownership for lower—and middle-income urban residents.

Let us look at how we can apply for CLSS now.

How to Apply for CLSS

This link contains the application form for CLSS. It is a simple two-page process that requires verification of the Aadhaar number.

On page one of the form, the applicant only needs to enter their 12-digit Aadhaar number, which will be verified before proceeding. This allows the government to ensure each applicant is genuine and prevents duplication or fraud.

Page two involves filling in key personal and address details. The applicant has to provide their name, age, gender, marital status, mobile number, and email ID. The address section requires input on the state, district, tehsil, city, locality, and pin code the applicant resides in. Providing this information correctly allows authorities to determine eligibility and target beneficiaries accurately under the PMAY scheme.

But before you apply, let us look at the documents required.

Documents Required for CLSS Application

Below is the list of documents required for the CLSS application.

Identity Proof

Aadhaar Card, Voter ID Card, Passport, Driving License

Income Document

PAN Card

Address Proof

Latest Utility Bill, Aadhaar Card, Voter ID Card, Passport, Residence Address Certificate, Rent Agreement (on stamp paper)

Income Proof (Salaried)

Latest Salary Slips, Bank Statements (Last 6 months)

Income Proof (Self-employed)

Latest ITR/Form 16

Loan & Repayment Proof

Documents related to current loans, Bank Statements (Last 6 months showing repayment)

Property Documents

Copy of Chain Documents, Sale Agreement, Allotment Letter, Payment Receipt

Now let us see how you can track your application status once you have applied.

Tracking CLSS Application Status

Below are the steps to track the status of the CLSS application.

Step 1- Visit the official PMAY-Urban website (https://pmaymis.gov.in).

Step 2- Click on the "Track Application Status" tab on the homepage.

Step 3- Enter your registered mobile number and click on "Search Application".

Step 4- You will receive an OTP on your mobile number. Enter the OTP and click on Submit.

Step 5- Your application details will appear on the screen.

Step 6- The status of your Credit Linked Subsidy Scheme (CLSS) application will be displayed below - 

• Submitted

• Approved 

• Rejected

• Sanctioned

• Disbursed

Step 7—If your application has been approved, you can view details such as the Beneficiary Name, Application ID, Subsidy Amount, and Bank Name.

Step 8- For rejected applications, you can check the reason for rejection provided.

Benefits of CLSS

CLSS scheme helps the middle and lower-class income earners in India achieve their dream of owning a house. The subsidy provided lessens the interest burden and makes repayment feasible. This scheme essentially provides interest subsidies on home loans used for construction, renovation, and purchasing new homes. Not only banks but also several non-banking financial institutions have joined this scheme and are providing interest subsidies to those who are eligible. Aside from purchasing and construction, the interest subsidy is also available for extending an existing home, such as adding a room, toilet, kitchen, etc.

FAQs

What is the maximum interest subsidy I can get under CLSS?

The maximum interest subsidy depends on your income category. For EWS/LIG with incomes up to Rs 6 lakhs, the maximum interest subsidy is Rs 2.67 lakhs. For MIG 1 with incomes Rs 6-12 lakhs, the maximum is Rs 2.35 lakhs. For MIG 2, with incomes of Rs 12-18 lakhs, the maximum subsidy is Rs 2.3 lakhs.

What documents do I need to apply to CLSS?

The key documents required for the CLSS application include the Aadhaar card, PAN card, address proof, income proof documents (like salary slips, ITR, bank statements), property documents (allotment letter, sale agreement, etc.), and current loan details, if applicable.

With relaxed eligibility criteria and a simplified application process requiring just Aadhaar verification, CLSS makes quality housing accessible and affordable. To benefit from this scheme and begin your journey towards an Aadhar home loan, visit www.aadharhousing.com today.