The carpet area of a house has been enhanced to 160 sq m from 120 sq m for Middle Income Group-I (MIG-I), while it has been increased to 200 sq m from 150 sq m in case of MIG-II. The new rules will be effective from January 1, 2017, the date on which the scheme became operational. Under the Credit Linked Subsidy Scheme (CLSS), each beneficiary can avail subsidy up to Rs 2.35 lakh on purchase of a house under the scheme.
Under MIG-I, 4 per cent interest subsidy is available on loan up to Rs 9 lakh for people with an annual income between Rs 6-12 lakh, while 3 per cent interest subsidy is given on loan up to Rs 12 lakh to people with income between Rs 12-18 lakh per annum. The enhancements will now enable more MIG customers to qualify for subsidy and avail the benefits provided under the ambitious flagship mission of Pradhan Mantri Awas Yojana-Urban (PMAY-U).
Apart from increasing the number of beneficiaries, the enhancement in carpet area will increase the construction activity and will give a push to housing sector. As of June 11, an amount of Rs 736 crore has been disbursed to 35,204 beneficiaries belonging to the MIG category. The decision to increase the carpet area for MIG section was done after inputs from various stakeholders.