The newest addition to the Pradhan Mantri Awas Yojana (PMAY) was announced on 16th November according to which the carpet area of houses for the two middle-income group categories has been increased.
Here are the details.
Carpet area is the area that is enclosed within the walls or the actual area to lay the carpet. This area excludes the thickness of the inner walls. Initially, the builders were charging the buyers on the basis of super built-up area – the area that includes the area of the outer walls, balcony, lobbies, stairs and even the elevators. However, ever since RERA became effective from 1 May, 2017 the practice of super built-up area was demolished.
Further, under PMAY the area of the house was different for all categories other than only the carpet area being charged. The newest change in this Pradhan Mantri Awas Yojana is the enhancement in the carpet area of houses that are eligible for interest subsidy under the Credit Linked Subsidy Scheme (CLSS). For the MIG –I category the carpet area of the houses has been increased from 90 square metre to 120 square metre, for the MIG-II category the area has been increased from 110 square metre to 150 square metre.
The Changes in Subsidy
A four percent interest subsidy has been given to the beneficiaries of the MIG-I, whose annual income lies between Rs. 6 Lac and Rs. 12 Lac on a loan of up to Rs 9 Lac, while for beneficiaries under the MIG-II category having an annual income of Rs 12 Lac to Rs 18 Lac an interest subsidy of three percent on a loan of up to Rs 12 Lac has been announced. The PMAY is an affordable housing scheme that aims to provide houses to all the urban poor by 2022.
Will the New Change in The PMAY Carpet Area Benefit Buyers?
There are mixed reactions on this new change, but more positive than negative. Broadly, the benefits include the following:
- MIG group home buyers will have a wider choice in the developers’ projects.
- The increased carpet area will give a boost to the sale of the already built flats.
- The builders will now be able to clear their stack of unsold inventories.
The change is a win-win situation for both home buyers and builders, which is another the reason for the change to be widely accepted.