In order to boost the PMAY Scheme and to attract aspiring home buyers toward affordable housing, the Central Government plans to increase the carpet area of homes particularly for the residential units designed for MIG [Middle-Income group]. Now the eligible homebuyers purchase a spacious home and can avail the interest subsidy under the Credit-Linked Subsidy Scheme (CLSS) for the Middle-Income Group (MIG) under Pradhan Mantri Awas Yojana (Urban).
The revised carpet area increases the size of residential units by more than 100 sq.meter. Earlier, the housing units under MIG I and II were 1,291 sq. ft. and 1614 Sq.ft. size which are now increased to 1722 and 2153 Sq.ft. area respectively. This decision is likely to subsidize the demand and supply of the housing units which is also responsible for Country’s economic growth.
This decision to increase the carpet area size will bring more aspiring homeowners to buy the residential property under the affordable housing project named PMAY [Pradhan Mantri Awas Yojana] scheme launched by the Narendra Modi led Central Government in the year 2015. This moved is welcomed by various agencies related to the Indian real estate sector as an Official at CREDAI India said that the expansion in carpet area size will boost the affordable housing sector not only in major but also in I and II tier cities of the country.
According to the updated guideline, the individuals earning an annual Income between Rs 6 lakh and 12 lakh will be eligible for MIG I category, whereas the individuals earning annual income between Rs 12 lakh and 18 lakh rupees will qualify for MIG II category. The Interest Subsidy for MIG I and II are 4 and 3 percent respectively for maximum loan tenure of 20 years.
The possibility of the Credit-Linked Subsidy Scheme [CLSS] was to expand the MIG category after the approval of the Union cabinet in February 2017. This scheme was initially applicable for the year 2017 only which was further extended to March 2019. The CLSS scheme for MIG section gained impetus in the last few quarters and is been doing good so far. Until now, the Housing ministry has disbursed Rs.736.79 crores to 35,204 beneficiaries belonging to the MIG category.
The increase in construction of affordable housing is a positive signal for various industries such as cement and steel manufacturers, machinery industry at large. Also, this scheme proved helpful in job creation of both skilled and unskilled workers.