The central government has increased the carpet area of houses for middle income group (MIG) beneficiaries under the Pradhan Mantri Awas Yojana scheme. This move will benefit customers in the MIG category and realtors who have developed affordable houses for these customers. The enhancement of carpet area will widen the choices of houses offered under this credit-linked subsidy scheme (CLSS).
As per the announcement, the carpet area of houses in the MIG-I category has been enhanced to 120 square meters from 90 square meters. For the MIG-II category, the carpet area has been increased to 150 square meters from 110 square meters. The announcement was made by Union Minister Ravi Shankar Prasad following the Union Cabinet meeting chaired by prime minister Narendra Modi.
This CLSS was developed with the intention of providing affordable housing for the urban poor. Under this scheme, the centre aims to provide housing for all urban poor by the year 2022. With this increase in carpet area, more people would prefer to take housing under this scheme. Real estate bodies CREDAI and NAREDCO have welcomed this move as this would help them sell off the houses already developed under the affordable housing project.
According to Ravi Shankar Prasad, this move will provide a wider choice for buyers in the MIG category and increase the sale of flats in the affordable housing segment.
Under this CLSS scheme, an interest subsidy of 4% is available for beneficiaries in the MIG-I category (annual income between Rs.6 lakh and Rs.12 lakh) on a loan of Rs.9 lakh. An interest subsidy of 3% is available for beneficiaries falling in the MIG-II category (annual income between Rs.12 lakh and Rs.18 lakh) on a loan amount of Rs.12 lakh.
The subsidy available under this scheme will be calculated at 9% net present value over a maximum loan tenure of 20 years. There will be no subsidy available for housing loans that are over Rs.12 lakh.
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