The Union cabinet chaired by Prime Minister Narendra Modi cleared on Thursday a proposal to increase the carpet area of houses eligible for interest subsidy under the credit-linked subsidy scheme for the Middle Income Group (MIG) under the Pradhan Mantri Awas Yojana (Urban). 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 Ravi Shankar Prasad told reporters after the cabinet meeting. “The CLSS for middle income group 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. “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. Realtors hail government decisionRealtors’ body CREDAI and NAREDCO hailed the government’s decision to hike carpet area, saying the move would help middle income buyers and help the sector in clearing unsold homes.

Source: Hindustan Times November 16, 2017 15:00 UTC