Carpet Area Increased 33% For MIG Flats Eligible For Subsidy: 10 Things To Know



     Here are 10 things to know about the increase in carpet area for houses eligible for subsidy in MIG category under Pradhan Mantri Awas Yojana:

1. The carpet area – or the area enclosed within the walls excluding wall thickness – has been raised to 160 square metres for MIG -I and 200 square metres for MIG-II, according to the Ministry of Housing and Urban Affairs.

2. The change in rules marks a 33 per cent increase in carpet area eligible for subsidy in the Middle-Income Group (MIG) segment. Until now, the limits of 120 square metres and 150 square metres were applicable on MIG-I and MIG-II flats, respectively.

3. “The decision is another big step to boost the construction sector that contributes to increased activity on the supply side… These enhancements will now enable more MIG customers to qualify for subsidy and avail the benefits provided under the ambitious flagship mission of Pradhan Mantri Awas Yojana (Urban),” the ministry said.

4. While the MIG I category is applicable to families with annual household income between Rs. 6 lakh and Rs. 12 lakh, the MIG II group is for those with annual income between Rs. 12 lakh and Rs. 18 lakh. “The intent of the CLSS for MIG is to support the dream of every family in owning a house.”

5. For MIG I, the interest subsidy is four per cent, eligible housing loan amount is Rs. 9 lakh and the upfront amount for subsidy is Rs. 2,35,068. For MIG II, the interest subsidy is three per cent, eligible loan amount is Rs. 12 lakh and the upfront amount for subsidy is Rs. 2,30,156.

6. This augurs well with the Reserve Bank of India’s policy to revise the housing loan limits for Priority Sector lending (PSL) eligibility, the ministry said.

7. The central bank last week announced its decision of raising the housing loan limits from the existing Rs. 28 lakh to Rs. 35 lakh in metros, and from Rs. 20 lakh to Rs. 25 lakh in other centres. Loans given under PSL are less expensive than those provided by the banks in their ordinary course.

8. Apart from increasing the number of beneficiaries, the increase in carpet area will improve the construction activity, and will also assist in moving the housing sector forward.

9. The CLSS for MIG scheme has gained momentum in the last couple of quarters and the offtake has picked up significantly. As on June 11, 2018, an amount of Rs. 736.79 crore has been disbursed to 35,204 beneficiaries belonging to the MIG category, said the ministry. The number of CLSS beneficiaries for Economically Weaker Sections (EWS) and Low-Income Group (LIG) is 133,213 and subsidy released for this segment is Rs. 2,890.50 crore.

10. Under the Pradhan Mantri Awas Yojana (PMAY) initiative, the government aims to provide affordable housing for all by 2022.

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