Union Cabinet approves increase in carpet area of houses under Pradhan Mantri Awas Yojana

The Union Cabinet on 16 November 2017 approved the increase in the carpet area of houses eligible for interest subsidy under the Credit Linked Subsidy Scheme (CLSS), which is a part of Pradhan Mantri Awas Yojana (Urban).

Key Highlights
• It approved the increase in the carpet area in the Middle Income Group (MIG) I category of CLSS from the existing 90 square metre to up to 120 square metre.
• It increased the carpet area in respect of MIG II category of CLSS from the existing 110 square metre to up to 150 square metre.
• These changes will be effective from 1 January 2017, the date the CLSS for MIG became effective.

Background
The Credit Linked Subsidy Scheme (CLSS) for Middle Income Group covers two income segments in the MIG- Rs 600001 to Rs 1200000 (MIG-I) and Rs 1200001 to Rs 1800000 (MIG-II) per annum.

In the MIG-1, an interest subsidy of 4 per cent is provided for loan amounts up to Rs 9 lakh while in MIG-2, an interest subsidy of 3 per cent is provided for loan amount of Rs 12 lakh. Housing loans above 9 lakh and 12 lakh are at non-subsidized rates.

The CLSS for MIG is currently effective up to 31 March 2019.

The Union Ministry of Housing and Urban Affairs is implementing the Credit Linked Subsidy Scheme under the Pradhan Mantri Awas Yojana (Urban).