The Union cabinet on Wednesday approved the extension of tenure of loans under the Credit Linked Subsidy Scheme (CLSS) vertical of Pradhan Mantri Awas Yojana (Urban) Mission from 15 to 20 years and introduced the scheme for middle income group (MIG) category.
An allocation of Rs 1,000 crore initially in the budget for 2017-18 at the Budgetary Estimate stage has been made for the proposed CLSS for MIG.
The scheme will be named as CLSS for economically weaker sections of society/Lower Income Group (LIG), an official statement said.
The cabinet also allowed the Primary Lending Institutions (PLIs) that have signed an MoU with the Central Nodal Agencies (CNAs), under the CLSS vertical of PMAY (Urban) to extend the mandate of their MoU to CLSS for MIG with appropriate changes as applicable.
The interest subsidy to be disbursed to the beneficiaries will be credited to their home loan accounts after the PLIs have satisfied the eligibility criteria through their due diligence processes.
The outreach of the schemes will ensure greater participation amongst the EWS, LIG and MIG segment of the society to provide Housing for All by 2022, thereby ensuring equity and inclusiveness, the official statement said.