Govt boosts carpet area for middle-income housing

The Centre has approved the enhancement of carpet area of houses by at least 30% for the middle income group category under the Pradhan Mantri Awas Yojana- Urban. This increase in carpet area will cover almost 90% of supply in the housing market and thereby push demand, industry experts said.

According to the Cabinet decision, under MIG-I, carpet area eligible for interest subsidy is now 120 sq metres against the earlier norm of 90 sq metres. People earning between Rs.6 lakh and Rs.12 lakh annually fall under this category and they can avail an interest subsidy of 4% for loan amount up to Rs.9 lakh.

In respect of the MIG-II category, carpet area has been raised from the earlier 110 sq metres to up to 150 sq metres. People with annual income of Rs.12 lakh to Rs.18 lakh are eligible for 3% interest subsidy for loan amount of Rs.12 lakh.

Housing loans above Rs.9 lakh and Rs.12 lakh will be at non-subsidised rates, meaning the buyers will have to pay normal bank interest for the rest of the amount.

Since the interest subvention scheme for MIG came to effect from January 1, only 4,529 applications have been processed and barely Rs.93.01 crore has been disbursed as interest subvention. Under the interest subsidy scheme for people from economically weaker sections and low income groups, a total of 65,086 applications have been processed and Rs.1,330.5 crore has been disbursed. The interest subsidy for MIG is currently effective up to March 2019. 

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