banner banner

Stay Up-to-Date with Our Blogs & Articles

The texts on this website have been translated using an automated translation tool and its accuracy cannot be guaranteed. We recommend referring to the English version of the content for the most precise information. In the event of any disputes or inconsistencies, the contents in the English language shall be considered final and binding. IIFL HFL disclaims any liability or responsibility in this matter.
Go Back to Main blog page

PMAYU: Your Dream Home Just Got Bigger by 33%

By IIFL Home Loans | Published On Jun 13 2018 3:30 PM 2 min read 112 views 2647 Likes
Share on
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.

Share on


apply loan

Quick and Hassle Free Loan Processing

green ad
Prelude to Building Green - IIFL Home Loan's Guide to Sustainable Affordable Housing
Download report

Disclaimer: The information contained in this post is for general information purposes only. IIFL Home Finance Limited (including its associates and affiliates) ("the Company") assumes no liability or responsibility for any errors or omissions in the contents of this post and under no circumstances shall the Company be liable for any damage, loss, injury or disappointment, etc. suffered by any reader. All information in this post is provided "as is", with no guarantee of completeness, accuracy, timeliness, or of the results, etc. obtained from the use of this information, and without warranty of any kind, express or implied, including, but not limited to warranties of performance, merchantability, and fitness for a particular purpose. Given the changing nature of laws, rules, and regulations, there may be delays, omissions, or inaccuracies in the information contained in this post. The information on this post is provided with the understanding that the Company is not herein engaged in rendering legal, accounting, tax, or other professional advice and services. As such, it should not be used as a substitute for consultation with professional accounting, tax, legal or other competent advisers. This post may contain views and opinions which are those of the authors and do not necessarily reflect the official policy or position of any other agency or organization. This post may also contain links to external websites that are not provided or maintained by or in any way affiliated with the Company and the Company does not guarantee the accuracy, relevance, timeliness, or completeness of any information on these external websites. Any/ all (Home/ Loan Against Property/ Secured Business Loan/ Balance Transfer/ Home Improvement Loan/ NRI Home Loan/ Home Loan for Uniformed Services) loan product specifications and information that may be stated in this post are subject to change from time to time, readers are advised to reach out to the Company for current specifications of the said (Home/ Loan Against Property/ Secured Business Loan/ Balance Transfer/ Home Improvement Loan/ NRI Home Loan/ Home Loan for Uniformed Services) loan.