The Government raised the carpet area to avail the subsidy by 2,100 sq feet, now if your annual income is up to Rs 18 lakh; you can still avail of Rs 2.3 lakh upfront interest subsidy on 3 and 4 BHK apartments as well.
Pradhan Mantri Awas Yojna is the scheme, which roaring success and the government will positively achieve the aim of providing houses before 2022.
As previously 120 sq meters for MIG-I and up to 150 sq meters for MIG-II were eligible for interest subsidy now it has been increased up to 160 sq meters (1,722 sq ft) and 200 sq meters (2,153 sq ft) for these two categories.
On Tuesday, The housing and urban affairs ministry under PM Awas Yojna (PMAY) increased the carpet area of houses eligible for interest benefit for the middle-income group (MIG) by 33%.
The government also made it clear that the beneficiaries in tier three and four cities and small municipal and development areas, where housing cost is much lower because an individual earning Rs 18 lakh will not be able to afford such a large apartment in Delhi or Mumbai.
There are three categories of first-time home buyers for which the interest subsidy is available. Moreover, the Government added two sub-categories of MIG to get the interest subsidy in December 2016 based on their annual income and therefore widened the beneficiaries.
Under MIG-I category the households with annual income of Rs 6 lakh to Rs 12 lakh, while under MIG-II segment households with annual income of Rs 12 lakh to Rs 18 lakh are included. In the case of MIG home buyers, the government provides 4% interest subsidy for Rs 9 lakh and in the case of MIG-II home buyers 3% interest subsidy for Rs 12 lakh. Look for the following image to understand this well.