To boost affordable housing and achieve the vision of Housing for All by 2022, the government (Centre and state) have undertaken several initiatives, such as Pradhan Mantri Awas Yojana (PMAY) that aims to build 1 crore homes in urban and rural India by 2022.
The Credit Linked Subsidy Scheme for the Middle Income Group (CLSS for MIG) was announced by Prime Minister Narendra Modi on December 31, 2016 and was earlier extended twice till March 2019. The government in the last week of December 2018 extended the interest subsidy scheme till March 2020 for first time to urban home buyers whose annual income is between Rs 6 lakh and Rs 18 lakh.
Till now, over 93,000 people from this income group (MIG) have availed the Rs 1,960 crore interest subsidy from the Centre, which has been disbursed through banks. Overall, until December 30 this year, around 3.39 lakh beneficiaries have availed the CLSS under the PMAY (Urban) and the total subsidy released was Rs 7,543 crore.
For the MIG I category, which consists of individuals with an annual income of Rs 6-12 lakh, an interest subsidy of 4 percent is provided on a loan of up to Rs 9 lakh. For the MIG II category, which is made up of individuals with an annual income of Rs 12-18 lakh, an interest subsidy of 3 percent is given on a loan of up to Rs 12 lakh.
The benefits are typically up to Rs 2.67 lakh on home loans.