NEW DELHI: Centre’s plan of fulfilling the aspirations of owning affordable houses for common people has been made operational by the ministry of housing. The interest subsidy scheme has been named as ‘Credit Linked Subsidy Scheme for Middle Income Groups – CLSS(MIG)’.
Union minister of housing, M Venkaiah Naidu on Wednesday released the operational guidelines for CLSS (MIG). Middle Income Groups (MIG) with annual incomes of above Rs 6 lakhs and up to Rs 18 lakhs per year are eligible for interest subsidy on housing loans under the new CLSS (MIG). Those who have been sanctioned housing loans and whose applications are under consideration since January first this year are also eligible for interest subsidy.
Speaking on the occasion, Naidu said that Middle Income Groups make substantial contribution to the economic growth of the country besides paying taxes and deserved support to fulfill the dream of owning a house which is a basic and genuine aspiration. “Large scale incentivisation of affordable housing will boost real estate sector resulting in employment generation as well,” the minister said urging the banks to adopt a pro-active approach to reach the benefits to MIG people.
Since the middle income groups are better equipped to take advantage of the interest subsidy scheme in quick time and to enable meeting the Housing for All target by 2022, implementation of CLSS(MIG) is initially envisaged for one year.
Prime Minister has announced interest subsidy of 4% on housing loans of up to Rs 9 lakhs of those with an income of Rs 12 lakh per year and of 3% on housing loans of up to Rs12 lakh of those earning Rs 18 lakh per year.