The government has increased the eligible carpet area of homes for subsidised loans under the Pradhan Mantri Awas Yojana (PMAY). The maximum carpet area of 120 square meter under the MIG I category has been increased to 150 sq m and the maximum carpet area of 150 sq m under the MIG II category has been increased to 200 sq m.
What is the credit linked subsidy scheme (CLSS) under the PMAY?
CLSS offers subsidised loans to certain categories of home loan applicants. Those earning less than Rs 6,00,000 per annum are termed as Low Income Group (LIG) those earning between Rs 6,00,000 and Rs 12,00,000 come under Middle Income Group I (MIG I). Those earnings between Rs 12,00,000 and Rs 18,00,000 come under MIG II.
People under the LIG category get an interest rate subsidy of 6.5% for the home loan with a tenure of 20 years or less. The maximum loan amount should be Rs 6,00,000. Those who belong to MIG I and MIG II can avail a subsidy of 4% and 3% respectively for a loan amount of up to Rs 9 lakh and Rs 12 lakh respectively. The tenure of the loan will have to be 20 years or less.
|Income Group||Max Income||Carpet Area (sqm)||Max Loan (Rs.)||Max Subsidy (Rs.)||Woman ownership||Validity|
|MIG I||12,00,000||150||9,00,000||2.35 lakh||Not mandatory||31/3/2019|
|MIG II||18,00,000||200||12,00,000||2.30 lakh||Not mandatory||31/3/2019|
The family should include a husband, a wife and children who are yet to be married. The family should not own a constructed house in India. The house should be of the specified carpet area in order to avail the scheme. For those who belong to LIG/EWS, a woman should be the owner of the house for availing the subsidy.
The interest subsidy on the home loan will be credited to the loan account of the beneficiary through the financial institution or bank. This will result in reduced effective Equated Monthly Installment (EMI). The timeline for availing the subsidy was 31st March 2017 for the MIG groups. However, this has now been extended to 2019.