NEW DELHI: The Central government on Thursday approved an increase in the carpet area of houses eligible for interest subsidy under Pradhan Mantri Awas Yojana-Urban’s (PMAY-U) Credit Linked Subsidy Scheme (CLSS) for the Middle Income Group (MIG). The initiative will benefit the middle class who wish to own houses, said officials.
Under the MIG-I category, the carpet area of the houses has been enhanced from 90 sq mtr to 120 sq mtr, while under the MIG-II segment, it has been increased to 150 sq mtr from the current 110 sq mtr.
Under the MIG-I category, a four-per cent interest subsidy is provided to the beneficiaries, whose annual income is between Rs 6 lakh and Rs 12 lakh, on a loan of up to Rs 9 lakh. Similarly, under the MIG-II category, the beneficiaries with an annual income of Rs 12 lakh to Rs 18 lakh get an interest subsidy of three per cent on a loan of up to Rs 12 lakh.
Under the PMAY-U, the Centre aims to provide houses to all the urban poor by 2022. Currently, the shortage of houses is pegged at over 10 million in the urban areas.
The Ministry of Housing and Urban Affairs is implementing the CLSS for MIG since January this year pursuant to the Prime Minister’s address to the nation on December 31, 2016, announcing increased benefits for poor people availing housing loans, and a new interest subsidy scheme for housing loans for the MIG