Now, bigger houses for beneficiaries of subsidy scheme

The Centre on Tuesday approved a 33% increase in carpet area of houses eligible for interest subsidy under its affordable housing scheme Pradhan Mantri Awas Yojana-Urban (PMAY-U).

The carpet area of a house has been enhanced to 160 sqm from 120 sqm for Middle Income Group-I (MIG-I), while it has been increased to 200 sqm from 150 sqm in case of MIG –II. The new rules will take effect from January 1, 2017, the date on which the scheme became operational, said a Ministry of Urban Development release.

Under the Credit-Linked Subsidy Scheme (CLSS), each beneficiary can avail subsidy of up to Rs 2.35 lakh on purchase of a house.

Under MIG-I, 4% interest subsidy is available on loan up to Rs 9 lakh for people with an annual income between Rs 6-12 lakh, while 3% interest subsidy is given on loan up to Rs 12 lakh to people with income between Rs 12-18 lakh per annum.