The government today approved the increase in the carpet area of houses eligible for interest subsidy under the Credit Linked Subsidy Scheme (CLSS) for the Middle Income Group (MIG) under the Pradhan Mantri Awas Yojana (Urban).
The clearance came at the meeting of the Union Cabinet chaired by Prime Minister Narendra Modi.Now, the carpet area of an MIG-I will be increased from 90 square metres to up to 120 square metres and in the MIG-II category, it will be increased from 110 square metres to up to 150 square metres, Law and Justice Minister Ravi Shankar Prasad said.
“The change will be effective from January 1, 2017.”
The increase will give individuals in the MIG category a wider choice in developers’ projects and will boost the sale of ready flats in the affordable housing segment, Prasad said.
The CLSS for MIG is a pro-active step in meeting the challenges of urban housing shortage. It also is a pioneering step to enable the MIG to access the benefits of an interest subsidy scheme, an official statement said.
The CLSS for MIG covers two income segments in the MIG that being Rs 6,00,001 to Rs 12,00,000 (MIG-I) and Rs 12,00,001 to Rs 18,00,000 (MIG-II) per annum. In the MIG-1, an interest subsidy of 4 per cent has been provided for loans up to Rs 9 lakh while in MIG-II, an interest subsidy of 3 per cent has been provided for loans of Rs 12 lakh.
The interest subsidy will be calculated at 9 per cent NPV over the maximum loan tenure of 20 years or the actual tenure, whichever is lesser. Housing loans above Rs 9 lakh and Rs 12 lakh will be at non-subsidised rates.
Source – tribune india
