Centre Government Increases MIG Affordable Housing Carpet Area

Good news for builders and middle-class homebuyers, the Union cabinet increased the carpet area of houses under the government’s affordable housing scheme.

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Centre Government Increases MIG Affordable Housing Carpet Area

MIG Affordable Housing Carpet Area: In some good news for builders and middle-class homebuyers, the Union cabinet increased the carpet area of houses under the government’s affordable housing scheme on Thursday.

Now, the carpet area of an MIG-I will be increased from 90 square metres to up to 120 square metres and in MIG-II category it will be increased from 110 square metre to up to 150 square metres, law and justice minister told reporters after the cabinet meeting. The change will be effective from January 1, 2017.

The decision could help homebuyers access bigger, ready-to-move-in houses at lower costs, while developers with large inventories could look forward to renewed demand, triggering a virtuous cycle of employment generation and economic growth.

Credit-Linked Subsidy Scheme (CLSS) for Middle Income Group was a pro-active step in meeting the challenges of urban housing shortage and that it was also a pioneering step to enable the middle income group to access the benefits of an interest subsidy scheme.

CLSS for MIG covers two income segments, Rs 600,001 to Rs 1,200,000 for MIG-I and Rs 1,200,001 to Rs 1,800,000 for MIG-II per annum. In the MIG-1, an interest subsidy of 4% has been provided for loan amounts up to Rs 9 lakh, while in MIG-2, an interest subsidy of 3% has been provided for loan amount of Rs 12 lakh.

The Union finance ministry had allocated Rs1,000 crore under the programme. The ministry intends to target 50,000 people under the scheme in 2017-18. The eligibility criteria and interest subsidies on loans remain unchanged.

The interest subsidy will be calculated at 9% NPV (Net Present Value) over a maximum loan tenure of 20 years or the actual tenure, whichever is lesser. Housing loans above Rs 9 lakh and Rs 12 lakh will be at non-subsidised rates.  CLSS for MIG would be effective up to March 31, 2019.

Source Link- http://www.hindustantimes.com/india-news/cabinet-okays-hike-in-carpet-area-of-middle-income-group-flats-for-subsidy/story-k62Wrc9yfDbXnQgRukPcEK.html

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