New, bigger Homes under PMAY-U

The government has approved a 33% increase in carpet area of houses eligible for interest subsidy under its affordable housing scheme Pradhan Mantri Awas Yojana - Urban to attract more beneficiaries, the Housing and Urban Affairs (HUA) Ministry said. The increase in the carpet area of a house under PMAY-U has been affected across all middle-income group categories. For Middle Income Group-I (MIG-I), the carpet area has been increased from 120 sqm to 160 sqm. And in the case of MIG -II it has been increased from 150 sqm to 200 sqm.
The new rules have been given retrospective effect from January 1, 2017. Under the Credit Linked Subsidy Scheme (CLSS), each beneficiary can avail subsidy up to Rs 2.35 lakh on purchase of a house under this scheme. A 4% interest subsidy is available on loans up to Rs 9 lakh for people with an annual income between Rs 6-12 lakh under MIG-I plan. And 3% interest subsidy is given on loans up to Rs 12 lakh to people with income between Rs 12-18 lakh p.a.
The change in rules enables 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.
Earlier, the Centre approved construction of 1.5 lakh houses for urban poor under the PMAY-U in May taking the total number of dwelling units to 47.52 lakh under the programme so far. The approval entailed an investment of Rs 7,227 crore with central assistance of Rs 2,209 crore and now according to HUA ministry, an amount of Rs 736 crore had been disbursed to 35,204 beneficiaries belonging to the MIG category as of June 11.