15th June 2018, Delhi, India: The Ministry of Housing and Urban Poverty Alleviation introduced Credit Linked Subsidy Scheme (CLSS), an interest subsidy scheme, in 2015 with a commendable vision of providing affordable housing solutions for all Indians. To meet the projected growth of urbanization, this scheme, comes under Pradhan Mantri Awas Yojana was put into practice to provide housing solutions to the Middle Income Group (MIG), Lower Income Group (LIG), and the Economically Weaker Section (EWS) in terms of purchasing, constructing, extending, and improving a house. Since its inception, this scheme is fulfilling the consequent housing needs of India.
As per the latest real estate news, recently, in an announcement by the Government of India on Tuesday, 12th June 2018, it has been stated that some fruitful changes have been made in the Pradhan Mantri Awas Yojana-Urban (PMAY-U) affordable house scheme. As per the add-on(s) to the scheme:
- 33% increase in carpet area has been approved by the government for the houses belong to the PMAY-U. For MIG-I, the recent carpet area allotted is 160 Square Meter, formerly was 120 Square Meter. For MIG-II the recent carpet area allotted is 200 Square Meter, formerly was 150 Square Meter.
- People belong to the MIG-I under CLSS with an income between Rs. 6 to 12 Lacs per annum are entitled to receive an interest subsidy of 4 percent on a loan up to Rs. 9 Lacs.
- On the other hand, people belong to the MIG-II under CLSS with an income between Rs. 12 to 18 Lacs per annum are entitled to receive an interest subsidy of 3 percent on a loan up to Rs. 12 Lacs.
- A first-time home buyer, who is also a beneficiary under the same scheme, can avail up to Rs. 2.35 Lacs as subsidy until 31st March 2019.
This seems to be a great news for the Indian home buyers, especially for those who belong to the tier 3 and 4 cities as they are privileged with lower house costs. The real estate market players have happily welcomed the proposed change of increasing the carpet area limit of houses for the MIG compliant to the CLSS of the PMAY.
Previously, construction of 1.5 Lacs houses got approval to be distributed among the urban poor under the PMAY-U in the month of May 2018. A whopping investment of Rs. 7,227 Crores along with Rs. 2,209 Crores as Central assistance has been received to proceed with the construction phase.
Driven by the inputs from various stakeholders, the decision of providing a hike in carpet area has been made. As per the HUA Ministry, as of 11th June 2018, Rs. 736 Crores had been already disbursed among 35,204 beneficiaries under the MIG section.
According to the thought leaders of real estate industry, this change is expected to attract a number of potential MIG customers to be qualified for the subsidy with an interest to avail the benefits offered by the PMAY-U flagship mission. The carpet area enhancement concept will also enhance the construction activity which can act as a push to the housing industry.
Author: Somdeepa Bhattacharjee
Somdeepa Bhattacharjee has a total experience of five years in the Content Editorial, Online Community and Internet Marketing domains. As a part of the content team of a3solutions.in, she develops research-oriented stories and News Articles on recent market trends. She has a proven strong analytical skill in her Articles which help readers to understand real time scenario of Realty Market. In her free time, Somdeepa engages in Blogging, Trekking, Reading Classics and Photography. She really fond of Entrepreneurship, Travelling and Foods.