Good news for all the home buyers in cities. Changes have been made in the Narendra Modi government’s affordable housing scheme Pradhan Mantri Awas Yojana-Urban (PMAY-U).
The government has approved a 33-percent increase in carpet area of houses eligible for interest subsidy under its affordable housing scheme Pradhan Mantri Awas Yojana-Urban (PMAY-U) to attract more beneficiaries, the Housing and Urban Affairs (HUA) Ministry said.
An increase in the carpet area of a house under PMAY-U has been made across all middle-income group groups. For Middle Income Group-I (MIG-I), the carpet area has been increased from 120 sq m to 160 sq m and for MIG-II, it has been increased from 150 sq m to 200 sq m.
The new rules were effective from January 1, 2017 – the date on which the scheme became effective. Under the Credit-Linked Subsidy Scheme (CLSS), each beneficiary can avail funding up to Rs 2.35 lakh on buying of a house under this scheme.
A four percent interest subsidy is available on loans up to Rs 9 lakh for homebuyers with an annual income of Rs 6-12 lakh under MIG-I plan. Three percent interest subsidy is given on loans up to Rs 12 lakh for homebuyers with income between Rs 12-18 lakh per annum.
The change in rules enables more MIG customers to qualify for funding and avail the benefits provided under Pradhan Mantri Awas Yojana-Urban (PMAY-U). Apart from growing the number of beneficiaries, the improvement in carpet area will increase the construction activity and will give a push to the housing sector.
According to Housing and Urban Affairs ministry, an amount of Rs 736 crore had been distributed to 35,204 recipients belonging to the MIG category till the second week of June. After accumulating inputs from various stakeholders, the decision to increase the carpet area for MIG section was done.
Previously, the Centre approved construction of 1.5 lakh houses for urban poor under the PMAY-U in May taking the total number of dwelling units to 47.52 lakh under the programme so far. The approval required an investment of Rs 7,227 crore with central assistance of Rs 2,209 crore.
