The government fixed new carpet area ceilings of 120 and 150 square metres for the interest subsidy of 4% and 3%.
New Delhi : The Union Cabinet on Thursday fixed new carpet area ceilings of 120 and 150 square metres for the interest subsidy of 4% and 3% respectively to the middle income group (MIG) under the Pradhan Mantri (Urban) Awas Yojana with retrospective effect from January 1, 2017 when the Credit Linked Subsidy Scheme (CLSS) was launched.
In an official briefing, Union Law Minister Ravi Shankar Prasad said the move will enhance the scope, coverage and outreach of the scheme, effective up to 31.03.2019.
He said the new ceiling is to cater to the market generally scouted by the middle-class and when covered in the scheme, will give a wider choice in the developers’ projects and boost sale of ready flats in the affordable housing segment.
The CLSS for MIG is a pro-active step in meeting the challenges of urban housing shortage. It is also a pioneering step to enable the middle income group to access the benefits of an interest subsidy scheme.
Earlier, the ceiling was 90 square metre for those in the annual income bracket of Rs 6-12 lakh (MIG-I) and 110 sq metres for those in the bracket of Rs 6-12 lakh (MIG-II). The interest subsidy of 4% is provided on loan amount up to Rs 9 lakh to MIG-I category and 3% on loan amount up to Rs 12 lakh to MIG-II category. No subsidy is, however, given if the loan amount exceeds the limits in the two categories.