Know All About Affordable Housing Scheme for Mid Income Group
In 2015, the central government laid out a vision to construct 20 million households under the PMAY by 2020. The scheme was in line with its ‘Housing for All’ push. Under the PMAY scheme, the government is constructing houses for poor, lower and mid income groups under its Credit-linked Subsidy Scheme (CLSS).
Here, we look at things that you need to know about affordable housing for the mid-income group also known as ‘CLSS for EWS/LIG’. Read on to know more.
Classification – Beneficiaries falling under CLSS for EWS/LIG are divided into two categories i.e., MIG I and MIG II. They are eligible for an interest subsidy based on household income. Households having an annual income between Rs.6 lakh and Rs.12 lakh are categorised as MIG I while those households having income between Rs.12 lakh and Rs.18 lakh are MIG II. Households under MIG I are eligible for a loan of Rs.9 lakh with an interest subsidy of 4 percent while MIG II households will be able to avail Rs.12 lakh as loan with an interest subsidy of 3 percent. The maximum repayment tenure is 20 years.
Who can be a beneficiary - A beneficiary family will comprise of husband, wife, and unmarried children. An adult earning member irrespective of marital status is treated as a separate household.
Who is eligible - To be eligible, the beneficiary family should not own a pucca house either in his/her name or in the name of any member of his/her family. The beneficiary family should not have availed central assistance under any housing scheme offered by the central government. In case of a married couple, either of the spouses or both together in joint ownership will be eligible subject to income eligibility under the scheme.
Carpet area of the house – Under the PMAY scheme, construction or acquisition of house having a carpet area of 120 sq. meters for MIG I and 150 sq. meters for MIG II will be supported along with all basic civic infrastructure. The exact carpet area will be determined as per the income eligibility of the beneficiary.
Women get preference – Overriding preference is given to single working women and widows. Beneficiaries belonging to scheduled castes, scheduled tribes, other backward classes, persons with disabilities and transgenders are also given preference.
Nodal Agencies – The National Housing Bank (NHB), wholly owned by Reserve Bank of India and the Housing and Urban Development Corporation Limited (HUDCO), a government of India enterprise are the central nodal agencies. They channelize the subsidy to the lending institutions under the scheme.
In case, additional loan amount is required it can be availed at non-subsidised rate.
The interest subsidy will be credited upfront to the loan account of the beneficiaries in order to reduce effective housing loan and EMIs.
The primary lending institutions will link the details of Aadhaar number(s) of beneficiary family to avoid duplications before submitting claims to the central nodal agencies.
Legal proceedings under applicable laws can be initiated against the beneficiary in case he/she provides false declaration.
The EWS/LIG scheme is implemented and monitored by the Mission Directorate formed under MoHUPA. State level Sanctioning and Monitoring Committee (SLSMC) and State Level Bankers Committee (SLBC) monitors the scheme through its prevalent institution mechanism.
