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Pradhan Mantri Awaas Yojana to let Bigger Houses to Have Interest Subsidy

Government has increased the carpet area of houses elgible for interest subsidy under the Credit Linked Subsidy Scheme(CLSS) for the Middle Income Group(MIG) under Pradhan Mantri Awas Yojana(Urban)

As per the new norms, the ministry of housing and urban affairs have increased the carpet area of houses eligible for subsidy under CLSS for MIG to 160 sq meter or 1733 sq ft for MIG- 1 and 200 sq meter or 2153 sq ft for category MIG-2.

Earlier the carpet area for these houses under MIG I and MIG II categories was fixed at 120 sq meter or 1,291 sq ft and 150 sq meter or 1,614 sq ft.  The enhancement will let more MIG customers to qualify for subsidy and avail benefits under Pradhan Mantri Awas Yojana.

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 “The increase in carpet area for MIG under CLSS to 200 square meters will prove to be a big push for urban housing in tier II and III cities and towns. This will not only give a boost to Housing for All but also help bolster the economy,” said Jaxay Shah, President of realty developers’ body CREDAI National”.

Under the revised norms, individuals with annual household income from 6lakhs to 12 lakhs will qualify for MIG 1 Category, while those who earn 12 laksh to 18 lakhs annually would fall under MIG 2. Interest subsidy for MIG 1 and MIG 2 will be 4 percent and 3 percent respectively.

The amount eligible for housing loan, under interest subsidy would be 9 lakh and 12 for MIG 1 AND MIG 2 category. Loan beyond this limit will be at non subsidised rates.

This also augurs well with the Reserve Bank of India’s recent decision to revise the housing loan limits for Priority Sector lending (PSL) eligibility where it has been decided to revise the housing loan limits for PSL eligibility from existing 28 lakh to 35 lakh in metropolitan centres (with population of 10 lakh and above), and from existing 20 lakh to 25 lakh in other centres

The new decision will help boost the construction sector and help in an increased economic activity.

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