PMAY Eligibility Criteria Revised: Get Interest Subsidy on Bigger House

PMAY, the government initiative to provide affordable housing to all under its flagship scheme Pradhan Mantri Awas Yojana gained a lot of popularity among the buyers. And now it seems our honorable PM is yet again ready to uplift the mood of the investors by announcing the increase in the carpet area of MIG homes.

Yes! The Housing and Urban Affairs Ministry has confirmed that the government has approved a 33% increase in the carpet area of the houses that come under the interest rate subsidy under its affordable housing scheme.

PMAY Eligibility Criteria

Particulars	MIG 1	MIG 2
Household Income per annum	Rs 6 lakh-12 lakh	Rs 12 lakh-18 lakh
Interest rate subsidy	4%	3%
Loan Tenure	20 yrs	20 yrs
Amount Eligible for interest subsidy	Rs 9 lakh	Rs 12 lakh
Upfront Subsidy Amount	Rs 2.35 lakh	Rs 2.3 lakh
Revised Norms
Carpet Area	Old:120 New:160	Old:150 New:200

The government has relaxed its norms and increased the carpet area from 120 sqm to 160 sqm for MIG-1 (the people whose income fall under the category of 6-12 lakhs, will get a 4% interest rate subsidy), while it has been increased from 150 sqm to 200 sqm in case of MIG II homes (3% subsidy for people with income between 12-18 lakhs per annum)

Beneficiaries of PMAY

The decision is aimed to encompass more and more citizens under this scheme who live in tier three and four cities, where the cost of living is affordable.

Objective of PMAY Revision

The housing and urban affairs minister Hardeep Puri has taken this decision after receiving several calls from the builders and home buyers of the small town complaining about interest rate benefit since the flat size was more than the laid down norms.

This will not just bring homes within reach of every Indian, but will also boost demand for houses & give a fillip to the housing sector which is the country’s second largest employment provider.

We are also working to sort out other problems plaguing the sector. (2/2) pic.twitter.com/ENpZpb710T

— Hardeep Singh Puri (@HardeepSPuri) June 13, 2018

This is the second time when the government has relaxed the carpet area for MIG people to avail the interest rate subsidy. Since January 2017, more than 1.68 lakh MIG beneficiaries have got the interest rate subsidy amounting Rs 737 crore and with the further relaxation in the carpet area, it is believed that subscribers for such home would increase.

Apart from increasing the beneficiaries, this decision will uplift the mood of the construction industries too. Hope the government is able to fulfill its dream to provide affordable housing to all by 2022.