Ministry of Housing and Urban Affairs (MoHUA) has released a new notification on 12 June 2018 to boost Affordable Housing. This notification is regarding an “Increase in the Carpet Area of Houses Eligible for Home Loan Interest Subsidy under Credit Linked Subsidy Scheme (CLSS) under Pradhan Mantri Awas Yojana (Urban) for the Middle Income Group (MIG)”. Now the Carpet Area under CLSS Component of PMAY-U is increased from 120 square metre to 160 sq.m for MIG I and from 150 sq.m to 200 sq.m for MIG II.
After this decision of increasing the carpet area for housing loan interest subsidy, Construction sector will get a major boost and will lead to enhanced economic activity. Now more MIG people will qualify for Subsidy under PMAY-U. Moreover, this initiative will also work well with the Revised RBI Housing Loan Limits For PSL.
Till 11 June 2018, govt. has disbursed an amount of Rs. 736.79 crore to 35,204 beneficiaries belonging to MIG category. CLSS For Medium Income Group People under PMAY (Urban) is applicable till 31 March 2019.
PMAY Home Loan Yojana 2018 – Increase in Carpet Area
The important features and highlights of Interest Subsidy under CLSS component of PMAY Home Loan Yojana 2018 are as follows:-
- In a major boost to the housing sector, govt. has approved to increase the carpet area for houses eligible for Home Loan Interest Subsidy under CLSS under PMAY-U.
- As a result of this decision, now more MIG customers will qualify for subsidy under Pradhan Mantri Awas Yojana Urban. This would result in enhanced economic activity and construction activities.
- Recently RBI revises housing loan limits for PSL eligibility from Rs. 28 lakh to Rs. 35 lakh in metropolitan areas (with population of 10 lakh or above) and from Rs. 20 lakh to Rs. 25 lakh till the dwelling cost does not exceed Rs. 45 lakh and Rs. 30 lakh respectively.
- Increase in the construction activities in Housing Sector will impact other core sectors like cement, steel, machinery and other allied sectors. Moreover, this move will create jobs for both skilled and unskilled workers.
- For more details on decision of Increase in Carpet Area for MIG Home Loan Interest Subsidy Eligibility under CLSS component of PMAY (U) – See Official Notification
MIG Segment plays a very vital role in the growth and development of economy of the country. CLSS for MIG People will support and help in realizing the dream of every family to own a house of their own.
MIG Home Loan Subsidy Eligibility – PMAY Credit Linked Subsidy Scheme (CLSS)
Candidates can see the MIG Home Loan Subsidy Eligibility under CLSS component of PMAY Credit Linked Subsidy Scheme in the table given below:-
MIG Home Loan Subsidy Eligibility under CLSS PMAY-U
|Particulars||CLSS for MIG|
|MIG – I||MIG – II|
|Household Income (p.a)||From 6,00,001 up to 12,00,000||From 12,00,001 up to 18,00,000|
|Interest Subsidy (% p.a)||4%||3%|
|Maximum Loan Tenure||20||20|
|Eligible Housing Loan Amount for Interest for Interest Subsidy (Rs)||Rs. 9,00,000||Rs. 12,00,000|
|Dwelling Unit Carpet Area (up to)||160 sq.m (Previously 120 sq.m)||200 sq.m (Previously 150 sq.m)|
|Discounted Rate for Net Present Value (NPV) calculation for interest subsidy||9%||9%|
|Amount for Subsidy (Rs.)||Rs. 2,35,068||Rs. 2,30,156|
The decision to increase the carpet area for MIG section is a long time demand of various stakeholders as potential beneficiaries were denied of the subsidy benefits for their homes due to an enlarge carpet area. Now increase in the carpet area will make them eligible for Interest Subsidy under CLSS.
CLSS Performance under Pradhan Mantri Awas Yojana (Urban)
The performance of Credit Linked Subsidy Scheme (CLSS) as on 11 June 2018:-
- CLSS for EWS / LIG –
- Beneficiaries – 1,33,213
- Subsidy Released – Rs. 2890.50 crore
- CLSS for MIG –
- Beneficiaries – 35,204
- Subsidy Released – Rs. 736.79 crore
- CLSS – Total –
- Beneficiaries – 1,68,147
- Subsidy Released – Rs. 3627.29 crore
This decision is taken after a large number of requests to increase the carpet areas specified for MIG I and MIG II categories.