Pradhan Mantri Awas Yojana (PMAY) Loan Scheme 2017 for MIG under CLSS – Interest Rates & Subsidy
How to apply for CLSS MIG: Here we will discuss on home loan subsidy eligibility, subsidy scheme application form, and loan subsidy calculator. Pradhan Mantri Awas Yojana (Urban) for middle-income group (MIG) has been announced by Central Government which includes interest subsidy on housing loan.
It is a Credit Linked Subsidy Scheme (CLSS) under which eligible middle-income household will be provided an interest rate subsidy on housing loan. The scheme is a part of the ‘Housing for All Mission’ of the government and is implemented since 1st January 2017. It will bring the monthly installment of home loan down to Rs 2000.
The present government envisions a decent house for all by 2022. The scheme is implemented initially for one year. The government has signed a ‘Memoranda of Understanding’ with 15 scheduled banks and 45 Housing Finance Companies.
Interest subsidy to the lenders will be reimbursed by National Housing Bank (NHB) and Housing and Urban Development Corporation (HUDCO) will reimburse interest subsidy to the lending institutes.
- Middle-Income groups having an annual income of the range 6 lakh to 18 lakh will be provided benefits of the scheme.
- The scheme is divided into two groups: MIG – I and MIG – II. The MIG – I comprise of household with annual income of the range 6 lakh – 12 lakh, whereas MIG – II comprises household with the annual income in the range 12-18 lakh.
- MIG – I group can get the interested subsidy on loan of up to Rs 9 lakh with interest subsidy of 4% for the house loan with the carpet area of 90 square meters. For MIG – 2, it provides an interest subsidy of 3% on house loan of up to Rs 12 lakh for the acquisition of house with the carpet area of 110 square meters.
- The interest subsidy will be calculated at 9% NPV for the loan of a maximum tenure of 20 years.
- The interest subsidy will be paid to the beneficiaries up front which reduces monthly investment. The total interest subsidy to beneficiaries turns out to be Rs 2.30 lakh.
- No processing fee is charged under the scheme to the beneficiaries.
Mantri Awas Yojana (Urban) for middle-income group (MIG) scheme 2017 is a great initiative and it will help middle-income group household to fulfill their dream of a house of their own. 2.35 lakh interest subsidy is a considerable amount for MIG group.
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