In case you earn up to Rs. 18 lakh annually, you can get an upfront subsidy on interest of Rs. 2.3 lakh even when you are purchasing a house/apartment of 2, 100 sq. ft. with 3 or 4 bedrooms. The carpet area has been scaled up by the Union Housing & Urban Affairs Ministry for homes which will be eligible for getting interest benefits under the Pradhan Mantri Awas Yojana (PMAY). The carpet area for the MIG (middle-income group) segment has been enhanced by 33%.
This will help buyers in tier-III and tier-IV cities along with smaller towns and municipal development zones where the costs of housing are on the lower side. The interest subsidy is only available under PMAY for first time buyers of homes. The sub-categories have been added by the Government previously for the MIG section in order to reach out to more beneficiaries.
Families with annual income between Rs. 6-12 lakh are part of the MIG-I category while households with annual earnings between Rs. 12-18 lakh come under the MIG-II category. 4% subsidy on interest is given by the Government for a sum of Rs. 9 lakh in case of MIG buyers and 3% on Rs. 12 lakh for MIG-II buyers. Homes with carpet areas up to 120 sq. mt. were earlier eligible under MIG-I and up to 150 sq. mt. under MIG-II. This has now gone up to 160 sq. mt. and 200 sq. mt. for these segments respectively.
This decision comes after the Union Ministry was contacted by several homebuyers and real estate developers in smaller Indian towns who stated that they were missing out on the eligibility for getting benefits on interest since the flat/plot sizes exceeded the regulations mandated previously. This is the second revision in carpet areas for MIG buyers by the Government. More than 1.68 lakh buyers in the MIG category have already got the subsidy since January 2017 amounting to a whopping Rs. 737 crore.
The housing loan limits for PSL eligibility have also been scaled up to Rs. 35 lakh from Rs. 28 lakh in metro centres while this has gone up to Rs. 25 lakh from Rs. 20 lakh in other centres provided the total residence costs do not surpass Rs. 30 lakh and Rs. 45 lakh for other centres and metropolitan centres respectively.