On Nov 25, 2019, Hardeep Singh Puri, the Union Minister of Housing and Urban Affairs has unveiled a new online CLSS Awas portal (CLAP) to monitor the Pradhan Mantri Awas Yojana subsidy on home loan by the government. He added all the applicants can now easily track the status of their PMAY subsidy applications online without any need of travelling long distances. Additional to this launch, the signing of agreements for the development of Lighthouse schemes under GHTC-India between the Union Housing Ministry and the State governments has also been initiated.

What is Credit Link Subsidy Scheme?

The CLSS scheme is to use the credit-related subsidy portion as a demand-side intervention to extend the institutional credit flow to the housing needs of the urban poor. Interest grants will be credited to the receivables ' loan accounts via primary loan institutions to reduce the efficient housing loan and equated monthly installation (EMI).

As per the scheme, Economically Weaker (EWS) and low-income (LIG) loans by banks, housing finance agencies, and other such institutions would be generated at 6.0% interest subsidies for a 20* term or loans that are lower. Beneficiaries are liable for an interest subsidy at the rate that is 6.5%. The credit-linked subsidy will only be available at non-subsidized rates on loans up to 6 lakhs and, if any, for additional loans over Rs. 6 lakhs.

The CLSS scheme for the first time introduced Mid-income Groups (MIG) including two MIG revenue groups. Rs.6,00,001 for the MIG-I and Rs.12,00,001 for the MIG-II and Rs.18,00,000 for the year. The interest allowance of 4% in the MIG-I has hit loans up to Rs.9 lakh, while in the MIG-II interest allowance of 3% in the Rs.12 lakh loan amount has been made available. In the case of a fixed loan term of 20 years or the real duration, the interest payment is measured at NPV of 9 percent, which is the greater. Loans for homes between Rs. 9 lakh and Rs. 12 lakh are not subsidized.

Credit Link Subsidy Scheme (CLSS) Awas Yojana portal (CLAP) Benefits

The Credit Link Subsidy Scheme (CLSS) Awas Yojana portal, is expected to address the grievances from beneficiaries in an extensive and organized way. As per the CLSS scheme, the govt will provide interest allowance for individual loans up to Rs 2.67 lakh, which, in turn, will reduce the outstanding principal amount of the loan.

Hardeep Singh Puri said the CLSS Awas Portal (CLAP) would help other investors synergize in preparation for awarding grant subsidies. The CLAP portal is intended to provide the recipients of Credit-Linked Subsidy Services (CLSS) with a straightforward and reliable web-based monitoring system in real-time. It allows clients to monitor their status in real-time online. It will provide the credit-linked subsidy services with a transparent real-time monitoring system and would also benefit other stakeholders to work together to provide subsidies to recipients in due course.

Technological Innovation Grant for Light House Projects

Global Housing Technology Challenge India (GHTC-India) has been introduced to implement' Housing For All mission' to achieve global recognition of alternative and proven construction technologies for fast-moving and cost-effective housing construction. 

The ministry and six states, including Gujarat, Jharkhand, Madhya Pradesh, Tamil Nadu, Tripura, and Uttar Pradesh were also signing Memoranda of Understanding on Light House Planning for GHTC-India. The state governments in Indore, Rajkot, Chennai, Ranchi, Agartala, and Lucknow were expressed in Puri's appreciation of light-house construction projects.

The Light House projects can quickly demonstrate and deliver live-in homes that are more cost-effective, economical, sustainable and superior and better in construction quality than the normal conventional construction. For LHPs, the Ministry has launched a Technological Innovation Grant, which is additional to the current share of Rs 1,5 lakh per house of Rs 2 lakh for PMAY(U).

Conclusion

Through these new initiatives, govt is not stepping back to give its positive share to boost the housing industry. The main motto of the CLAP website is to give the recipients of the CLSS scheme a straightforward and reliable web-based surveillance system in home loan subsidy.

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By Govi