A MIG housing-friendly subsidy scheme

In an attempt to bring down the monthly equated installment (EMI) for the middle-class by over Rs. 2,000, the government has recently clarified the credit linked subsidy scheme (CLSS) for home buyers in the middle income group (MIG), Union Minister, Venkaiah said, claiming that the move is set to benefit all middle-class home buyers with annual incomes of above Rs. 6 lakh and up to Rs.18 lakh per annum and they will be eligible for receiving interest subsidy on housing loans taken in 2017 under Pradhan Mandri Awas Yojana (Urban). Interest subsidy will be provided on home loans for construction or purchase of house with carpet area of 90 square meters by those earning upto Rs. 12 lakh per annum and of 110 sqm by those earning upto Rs.18 lakh per year. No processing fee will be charged by banks or housing finance companies from the applicants under CLSS. Not just the poor, even the middle-class is also on top of PM's agenda, as this segment makes substantial contribution to the economic growth of the country by paying taxes and deserved support to fulfill the dream of owning a house, MD and CEO, NHB, Sriram Kalyanaraman said, adding that the interest subsidy of 4 percent under the scheme will bring down EMI by Rs. 2,062 per month on a housing loan of Rs. 9 lakh and interest subsidy of 3 percent will reduce the monthly outgo by Rs. 2,019 on Rs. 12 lakh loan.