By Accommodation Times Bureau
The Ministry of Housing and Urban Affairs on Tuesday approved the revision of the carpet area of house eligible for interest subsidy under the Credit-Linked Subsidy Scheme (CLSS) for the Middle-Income Group (MIG) under PMAY.
The ministry in its notification said, “MIG I from up to 120 square metre to be increased to up to 160 square metre and, in respect of MIG II from up to 150 square metre to up to 200 square metre.”
The revision changes with effect from January 1, 2017, i.e from the date when the scheme became operational, it said.
Recently, RBI announced the housing loan limits for PSL eligibility is raised to Rs 35 lakh from Rs 28 lakh in metropolitan centres and Rs 25 lakh to Rs 20 lakh in other centres.
Ministry said the increased construction activity in the housing sector has a cascading effect on core sectors like cement, steel, machinery and other allied sectors. More construction activity in the urban areas would result in the creation of more jobs for both skilled and unskilled workers.
|Sn.No||Particulars||CLSS for MIG|
|MIG – I||MIG – II|
|1.||Household Income (Rs. p.a.)||From 6,00,001 up to 12,00,000||From 12,00,001 up to 18,00,000|
|2.||Interest Subsidy (% p.a.)||4.00%||3.00%|
|3.||Maximum Loan Tenure||20||20|
|4.||Eligible Housing Loan Amount for Interest for Interest Subsidy (Rs)||9,00,000/-*||12,00,000/-*|
|5.||Dwelling Unit Carpet Area (up to)**||160 sq.m.||200 sq.m.|
|6.||Discounted Rate for Net Present Value (NPV) calculation for interest subsidy||9.00%||9.00%|
|7.||Upfront Amount for Subsidy (Rs.)||2,35,068/-||2,30,156/-|
The decision to increase the carpet area for MIG section was done after inputs from various stakeholders. One of the key issues was a denial of CLSS benefit to potential beneficiaries because they were buying flats/houses, constructing houses, where the carpet area exceeded the cap of either 120 square metre or 150 square metre, thus rendering them ineligible for the interest subsidy under MIG.