Under the Pradhan Mantri Awas Yojana – Urban programme lakhs of middle-class homebuyers will be benefited with better interest subsidy and upgrading the quality and size of their housing units.
The Government is worried a lot as neither middle-income group people nor private operators have shown interest in the PMAY (urban). The carpet area of a housing unit is its actual usable area, enclosed within its walls.
“The increase in carpet area will enable the Ml category of individuals to have a wider choice in Developers’ projects”, acoording to officials. The CLSS for MIG covers two income segments in the MIG, viz, Rs 6,00,001 to Rs12,00,000 (MIG-I) and Rs12,00,001 to Rs18,00,000 (MIG-II) per annum.
“This decision will now bring the entire demand for affordable housing under the interest subvention scheme, accounting for nearly 96 percent of the total demand for housing in the country”, said Rajeev Talwar, chairman and Niranjan Hiranandani president, National Real Estate Development Council. Under the MIG-II category, the beneficiaries with an annual income of Rs 12-18 lakh get a three-percent interest subsidy on a loan of up to Rs 12 lakh.
Mr. Gagan Banga (VC & MD, Indiabulls Housing Finance Limited) stated, “The cabinet’s decision is a massive positive for the macros of housing. The home buyer now has a larger pool of prospective houses to choose from. The fence sitters specially, who were delaying their home purchase will now be given a further push. Builders, meanwhile, will not only enjoy the general uptick in the market that is ahead of us but can also accelerate the sale of housing units which were earlier missing out on a sizeable portion of the Middle Income Group audience. The Government remains committed to its headline mission of ‘Housing for All by 2022’, and has yet again delivered a further impetus for home buyers, home suppliers and home financiers by easing the ecosystem.”
The Ministry has so far approved construction of 28,57,321 affordable homes for Economically Weaker Sections (EWS) under the Prime Minister Awas Yojna (Urban) and investment for Low and Middle-Income Groups Rs.1,54,180 crore, the Central assistance of Rs.44,278 crore has been approved for these houses.
For the Middle Income Group, the carpet area of houses eligible for interest subsidy under the CLSS is been increased from 90 sq metres (900 sq ft) to 120 sq metres (1,200 sq ft).
The Credit Linked Subsidy Scheme for Middle-income group is now effective up to 31 March 2019.