Interest Subsidy Scheme on home loans for MIG extended by another 15 months


The central government has announced that the benefit of interest subsidy of about Rs.2.60 lakh on home loans under Pradhan Mantri Awas Yojana (Urban) will now be available for beneficiaries belonging to Middle Income Groups (MIG) fir fifteen more months beyond December this year.

This was announced by Shri Durga Shanker Mishra, Secretary (Housing & Urban Affairs), Government of India, while addressing the ‘Real Estate and Infrastructure Investors Summit’ organized by NAREDCO, in Mumbai. He said that the government decided to give more time for MIG beneficiaries to avail interest subsidy under PMAY(Urban).

Prime Minister Shri Narendra Modi, in his announcement on the 31st of December last year made applicable the Credit Linked Subsidy Scheme (CLSS) under PMAY(Urban) to MIG, till the end of December this year. Under CLSS, MIG beneficiaries with annual income of above Rs.6.00 lakhs and up to Rs.12.00 lakhs would get an interest subsidy of 4.00% on a 20 year loan component of Rs.9.00 lakhs. Those with annual exceeding Rs.12.00 lakhs and up to Rs.18.00 lakhs would get interest subsidy of 3.00%.

Reiterating the Government’s commitment to meet the Housing for All targets in urban areas by 2022, Shri Mishra urged private investors to invest in affordable housing, being promoted by the Government in a big way with several incentives and concessions.