PMAY Home Loan Subsidy for MIG – House Area Increased to 1,500 sq ft

Views: 2054 | Dated: November 18, 2017 | Updated On: June 14, 2018 | By: Rajesh Kumar |
PMAY Home Loan Subsidy for MIG – House Area Increased to 1,500 sq ft

Pradhan Mantri Awas Yojana – Urban, a flagship housing scheme of central government has got another boost from the central government. The people belonging to MIG category would now be able to buy a bigger house and still get the scheme benefits. The central government has now increased the house area for MIG up to 1500 Sq.ft.

As per the new amendment, the people belonging to MIG 1 whose annual income is up to Rs. 12 Lakh would be able to buy or build a house of up to 1,200 sq.ft. compared to earlier 900 sq.ft. For MIG 2, whose annual income is up to Rs. 18 Lakh per annum, the eligible house area has been increased to 1500 sq.ft. from earlier 1100 sq.ft.

Latest Update – PMAY-U for MIG – Increase in Carpet Area of Houses Eligible for Interest Subsidy under CLSS – View Details

The increase in the house area is expected to increase the demand of home loans and eventually homes across the country. Under the credit linked subsidy scheme of PMAY for MIG, the government is providing interest subsidy of 3% and 4% for a home loan amount of up to Rs. 9 Lakh and Rs. 12 Lakh respectively for a maximum tenure of 20 years.

PMAY House Area & Subsidy for MIG

Below is the tabular illustration of the PMAY home loan for MIG and the eligible area of home for interest subsidy.

Particulars MIG – 1 MIG – 2
Household income per annum 12 Lakh 18 Lakh
Interest Subsidy (per annum) 4% 3%
Maximum loan tenure in years 20 20
Eligible loan amount for interest subsidy under CLSS for MIG 9 Lakh 12 Lakh
Discount rate for Net Present Value (9%) calculation of interest subsidy 9% 9%
Maximum interest subsidy 2.35 Lakh 2.3 Lakh
Dwelling unit maximum carpet area 120 Sq. Mt. 150 Sq. Mt.
Monthly EMI @ 8.65% without interest subsidy Rs. 7,894 Rs. 10,528
Monthly EMI @ 8.65% with interest subsidy Rs. 5,834 Rs. 8,509

The central government also extended the last date to avail the interest subsidy for MIG recently by 15 months. As per the increased deadline, the MIG home loan borrowers can not avail the home loan interest subsidy benefits up to March 2019.

The applications for the interest subsidy on home loans can be made at the lending institutions and banks from where the loan is availed. However, only the home loans taken on or after 1st January 2017 would be eligible to take the scheme benefits subject to other eligibility criteria.

PMAY MIG Home Loan EMI Calculator

The illustrative EMI calculator for the PMAY home loan scheme for MIG is available at below link.
PMAY Home Loan EMI Calculator

The assessment applications for PMAY-U are being invited through the online mode through official website of PM Awas Yojana.

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