CLSS vs MIG Subsidy: A Complete Housing Scheme Comparison for Indian Homebuyers

Why This Matters More Than You Think

Buying a home in India is never just about bricks and beams — it’s about financial stability, family security, and future planning. For first-time buyers, every rupee shaved off an EMI matters.

That’s why the Credit Linked Subsidy Scheme (CLSS) under the Pradhan Mantri Awas Yojana – Urban (PMAY-U) made such a splash when it launched in 2015. But over time, multiple income categories, the introduction of MIG (Middle Income Group) subsidy, and now PMAY-U 2.0 have left many confused.

Let’s cut through the noise.

The Quick-Glance Comparison Chart

CLSS – The Umbrella Scheme

Launched in June 2015 under MoHUA, CLSS was designed to make home loans cheaper for first-time homebuyers:

• Worked via banks and housing finance companies instead of direct allotments.
• Could be used to buy, build, or extend a home.
• Subsidy was credited directly to your loan account, reducing EMIs immediately.

MIG – A Category Inside CLSS

Introduced in January 2017, MIG brought the scheme to the salaried middle class:

• MIG-I: Income6–12 lakh/year.
• MIG-II: Income12–18 lakh/year.

The subsidy here wasn’t as large as for EWS/LIG, but still enough to save 2–3 lakh over the loan term.

The End of MIG CLSS – and PMAY-U 2.0

• MIG categories ended 31 March 2021.
• EWS/LIG categories ended 31 March 2022.
• Sept 2024: PMAY-U 2.0 launched with a new Interest Subsidy Scheme (ISS):
  
  • Up to 1.80 lakh subsidy for EWS/LIG and select MIG households.
  • Focus on affordable housing in smaller cities/towns.
  • Emphasis on green construction and climate-resilient construction.

If you’re a MIG buyer in 2025, the original CLSS is gone, but ISS might still apply — check pmay-urban.gov.in or nhb.org.in for the latest rules.

Why Property Size Can Make or Break Eligibility

Carpet area limits under CLSS were strict:

Even a 3 sqm overage could make you ineligible. Many buyers got tripped up by mixing up carpet areas with built-up or super built-up.

Remember:

• Carpet area – usable space inside walls.
• Built-up – carpet + wall thickness.
• Super built-up – built-up + share of common areas.

“We had a buyer walk away because their flat was just over the subsidy limit. That benefit was their deal-maker.” — Sales Head, Ahmedabad

How CLSS Applications Worked

1. Apply with a PMAY-listed bank or HFC.
2. Lender checks eligibility.
3. Case sent to NHB/HUDCO.
4. Subsidy credited to the lender.
5. Loan principal reduced → EMI drops.

Processing could take 3–6 months.

Lessons for Today’s Buyers

• Match income + property size to the right category.
• Always use RERA-certified carpet area numbers.
• Watch scheme deadlines.
• Keep documents ready: income proof, Aadhaar, property papers.
• Work with lenders experienced in subsidy processing.

Homebuyer’s Pocket Guide – CLSS vs MIG

Closing thought:

While navigating housing schemes can be complex, the right information helps you make confident, financially sound choices. Just as you’d choose the right cement mix for the foundation of your home.