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PMAYU: Your Dream Home Just Got Bigger by 33%

PMAYU: Your Dream Home Just Got Bigger by 33%

The Ministry of Housing and Urban Affairs on Tuesday brought joy to home buyers in the affordable housing segment by increasing carpet area of MIG houses eligible for CLSS Subsidy by 33% under PMAY(U).

Currently, carpet area eligible for CLSS subsidy for MIG- I is up to 120 sq meters and MIG-II is up to 150 sq meters. But now, government has increased this to up to 160 sq meters for MIG-I and 200 sq meters for MIG-II. According to a statement released by the ministry, the decision to increase carpet area will be effective from January 1, 2017.

Households with annual income of Rs. 6 lacs to Rs. 12 lacs are categorized under MIG-I while those with an annual income of Rs. 12 lacs to Rs. 18 lacs come under MIG-II. The decision to increase eligible carpet area for CLSS subsidy aims to expand affordable housing initiatives in tier III & IV cities where the cost of the house is less than tier I & II cities.





Annual HouseHold Income (INR)

6-12 lacs

12-18 lacs

Interest Subsidy (% pa)



Loan Tenure

20 yrs

20 yrs

Amount eligible for interest Subsidy(INR)

9 lacs

12 lacs

upfront subsidy amount (INR)

2.35 lacs

2.3 lacs

Carpet Area

old:120 sqm, new:160sqm

old: 150 sqm, new: 200sqm


The Ministry of Housing and Urban Affairs decided to review rates after receiving representations from real estate developers and home buyers in tier 3 and tier 4 cities. Many home buyers in these smaller cities and towns missed out on interest subsidy due to the size of their flat or plot. 

The government has for the second time revised carpet area rates of MIG homes to enable home buyers in getting interest rate subsidy. More than 1.68 lac MIG beneficiaries have collectively availed CLSS subsidy of approximately Rs 737 crore.

The decision to revise CLSS subsidy eligible carpet area comes almost a week after RBI revised home loan limit for priority sector lending (PSL) eligibility.