04-08-2025
Home Loan: What is credit linked subsidy scheme for middle income group?
The Ministry of Housing and Urban Affairs (MoHUA) runs an interest subsidy scheme for the acquisition and construction of houses (including repurchase) known as the Credit-Linked Subsidy Scheme for the Middle Income Group.
Under this scheme, beneficiaries of the Middle-Income Group (MIG) can seek housing loans from banks, housing finance companies, and other such institutions for the acquisition/ construction of houses (including re-purchase). Under the scheme, interest subsidy is given on housing loans for the acquisition/construction of houses (including re-purchase).
The scheme supports the acquisition/construction of houses (including repurchase) of 160 square meters (For MIG I) and 200 square meters (For MIG II). Particulars MIG I MIG II Household Income ( ₹ per annum) 6,00,001 - 12,00,000 12,00,001 - 18,00,000 Interest Subsidy (% per annum) 4 per cent 3 percent Maximum loan tenure (in years) 20 20 Eligible housing loan amount for interest subsidy ( ₹ ) 9,00,000 12,00,000 Dwelling Unit Carpet Area 160 square meters 200 square meters Discount rate for NPV calculation of interest subsidy 9% 9%
I. The beneficiary family is not supposed to own an all-weather dwelling unit either in his/her name or in the name of any member of his/her family anywhere in India. And if it is a married couple, either of the spouses or both together in joint ownership will be eligible for a single house, subject to the household's income eligibility under the Scheme.
II. A beneficiary family should not have availed of central assistance under any housing scheme from the Government of India.
III. Middle Income Group-I (MIG-I) - annual household income exceeding ₹ 6 lakhs and up to ₹ 12 lakhs seeking housing loans from Banks, Housing Finance Companies (HFCs), and other such institutions for acquiring/ constructing houses.
IV. Middle Income Group-II (MIG-II) - annual household income exceeding ₹ 12 lakhs and up to ₹ 18 lakhs seeking housing loans from Banks, Housing Finance Companies (HFCs), and other such institutions for acquiring/ constructing houses.
7. Any other documents, as required
Eligible applicants can apply through banks that participate in the PMAY initiative. You can collect the application form through institutions or banks and fill it out completely.
The form is submitted to the bank along with the required papers. Finally, the loan amount will be deposited into your bank account after verification.
