1. Credit Linked Subsidy Scheme Frequently Asked Questions

2. FAQs
Where CLSS loan applications are available ?
Applications are available In banks. It is developed by Ministry of Housing and Urban Affairs in consultation with Indian Bankers Association.
Is there Self Declaration and Affidavit format prescribed?
Self declaration ( family income)/ affidavit (not owning pucca house) is developed Ministry of Housing and Urban Affairs in consultion with Indian Bankers Association & they are available in banks.
Whether Govt. Employee is eligible under this scheme
Yes.
If any housing loan sanctioned (without knowledge of this scheme), whether benefit can be provided under CLSS?
Yes. If applicant is eligible as per scheme guidelines, loan sanction during the following period can be considered under CLSS;
EWS/ LIG –Period
MIG 1& MIG2-Period
If the beneficiary brought site before , started construction work before But availed loan after Whether he is eligible under CLSS?
Yes. He is eligible under CLSS.

3. FAQs
If any housing loan sanctioned (without knowledge of this scheme) and processing fee was charged to applicant, whether it can be claimed from GoI?
If applicant is eligible under CLSS, even though processing fee was already charged (without knowledge of this scheme) , then bank have claim processing fee from GoI, refund to applicant.
Whether loan is available for site purchase
If applicant is willing to purchase site and construct house immediately, then he can avail loan under CLSS. Bank should not pass on interest subsidy to his account till he commence construction. But only for purchase of site, loan can’t be sanctioned under CLSS.
Whether loan can be sanction for B khatha
No.
Whether house/ site should be in the name of the female/ joint ownership.
Under CLSS (EWS / LIG) scheme, only in case of purchase, property should be in the name of women Or joint ownership. It is not applicable to MIG1 & MIG 2.
While entering in MIS, (by banks), it is shown that “female should be owner”. If male is owner, how to proceed?
Then enter as “purchaser.”

4. FAQs
Customer brought flat from private builder. But the builders could not complete construction. Within 36 months. What to do?
In such cases, applicant has to put pressurize on builder to complete immediately, other wise applicant will loose benefit under this scheme.
What is upper ceiling carpet area for EWS/ LIG ?
There is no limit as such.
What is procedure for claiming interest subsidy for bank?
Interest subsidy claims procedure vary from bank to bank.
Some bank have online system, once branch office enters details while sanctioning, the head office capture the details and submit claims to NHB/ HUDCO.
Some bank have partial online system, branches have to enter details manually and submit to head office. Head office submits to NHB/ HUDCO.
Where to submit interest subsidy claims?
Interest subsidy claiming procedure vary from banks to banks. In some banks, claims moves from branch to head office, from head office to NHB. In some banks, from branch to regional office, then to Head office and then to NHB.
How much time it take NHB to release for interest subsidy?
Normally, It may take 2-3 months to release subsidy.

5. FAQs
If bank delays in claiming interest subsidy under CLSS), what to do?
Applicant has to give complaint to NHB/ Bank online or through letter.
If banks delayed uploading applicant details online after approval. what to do?
Applicant has to give complaint to NHB/ Bank online or through letter. Because after entry
only, applicant can get benefit under CLSS.
One bank has given loan on under CLSS. But they could not uploaded the details online at that time. Now ( ) they are informing that they cant upload beneficiary details as it was already late?
Even now bank can upload details online.
If site is big, but EWS applicant want to construct 30 sqmt. Whether he is eligible under CLSS
Yes
Whether NHB/ HUDCO cross verify documents/ details, (desk scrutiny/ field verification) while releasing interest subsidy?
No. However, NHB/ HUDCO randomly visit applicants and check his eligibility.
From where bankers can access to potential beneficiaries list available in PMAY MIS.?
Potential beneficiary list identified during demand survey is available with NHB. Head office of the banks can down load it and share to branch offices.

6. FAQs
The loan tenure is 20 years. If applicant says he will repay principle amount within 15 years? Then how much benefit he gets under CLSS?
Banks should educate applicant that if tenure is 20 years, he will get more subsidy amount. Hence at least at the time of sanction, banks have to show tenure as 20 years, However, beneficiary may repay loan within 15 years.
One applicant EMI was Rs. 9,650 per month. After getting subsidy, his EMI was reduced is Rs. 7,071 Per month. But applicant wants to repay as per earlier EMI i.e Rs. 7,071 per month Then?
Bank has to reduce EMI immediately after getting interest subsidy. However, if customer wishes to repay Rs. 7,071 per month, banker have to get letter from applicant on this.
Interest subsidy was not released under Rajiv Rinn yojana? What to do?
Loans sanctioned under Rajiv Rinn yojana needs to be converted into CLSS and banks have to claim interest subsidy.
If some applicnat name is not in demand survey whether he can get loan? Is it required to enter his name / family details (4B) in PMAY MIS before /after sanctioning loan?
Such applicant can avail benefit under CLSS. It is not mandatory to enter his family details (4B) in PMAY MIS.
The processing fee will be released to bank later on (during subsidy releases, not at the time of loan sanctioning ). How to bear this cost at the beginning ( expenditure needs to be done for cross verifying document for sanctioning of loan)
Banks may collect processing fees from applicants & sanction loan under CLSS. Thereafter banks have submit claims for processing fees. Then banks have reimburse it to applicant.

7. FAQs:
If beneficiary wants to construct G+1, whether he is eligible?
If it is single unit (duplex house) then he is eligible. If ground floor & 1st floor are two different units, then he is not eligible. Ask beneficiary to take loan for ground floor then later he may construct 1st floor house after some gap.
Three bothers together purchased one 30*40 site. They want to construct G+2 (3 houses)? Whether they are eligible under CLSS?
Yes. all 3 brothers are eligible for 3 separate loans.
If applicant wants to construct shops at ground floor & house on 1st floor. Whether he can get benefit under CLSS?
Banks have to sanctioned 2 separate loans. One for commercial & one for residential. Subsidy may be claimed for loan sanctioned for residential purpose.
Who is responsible if applicant gave fake affadavit that he does not own house any where in India?
Banks have to get affidavit from applicant declaring “not owning pucca house any where in India”. If the applicant gave false affidavit that he will be held responsible. Bankers are not held responsible. However some basic check needs to be carried out by banks. Bank may get Confirmation letter from ULB / any ULB which is his native place.

8. FAQs:
For EWS/ LIG, self declaration is enough as per guidelines. But how to ensure his loan repayment capacity by banks?
Bank have to get self declaration as income proof. However each bank have “credit policy” They have to assess applicant’s income through their policy. If ensured about loan repayment, then bank may give loan. However, bank to see that income as mentioned in “self declaration” and income as “assessed by bank” should not vary too much.
Whether beneficiary can deviate plan during construction?
No. Construction should be as per approved plan.
If a person’s native is Bagalkot, But now he is residing in Bangalore. he wish to construct house in Bagalkot. Whether he can get loan in Bangalore?
It depends upon banks. However, it is better to take loan at Bagalkot. Because Bagalkot bank can easily assess his site / house value. They can check construction stage,
Now a days, There is delay in issuing building license. Why?
A circular is issued from Govt. to stop issuing building license on unauthorized site.
Is there rural interest subsidy scheme as similar to CLSS ?
Yes Rural Intra Subsidy Scheme was launched by GoI. It is operationalized within 3 months.
Whether bank staff can get benefit under this scheme?
No. there is separate scheme “ bank staff scheme” for them.

9. Thank You For more information please contact 080-23118888
Website: or
mohua.gov.in