In Thiruvananthapuram, homebuyers belonging to middle-income groups are slow in availing the credit-linked subsidy scheme (CLSS) under Pradhan Mantri Awas Yojana (PMAY) housing scheme.
Recently, the central government raised the CLSS component of PMAY (Urban) for middle-income groups with annual incomes in the range of Rs 12 lakh to Rs 18 lakh ensuring interest subsidies of four percent and three percent respectively on availing housing loans.
As of now, less than 90 applications have been received by the city corporation from the prospective homebuyers. About 5,000 beneficiaries have been identified. Officials have stated that most of these applications have come from low income groups and economically weaker sections. The number of applications under MIG-1 has been meagre.
The primary reason behind such a poor response for the scheme is because of property dimensions. As per the project guidelines, beneficiaries of MIG will be eligible for an interest subsidy only if the residential unit carpet area is 900 sq ft for MIG-1 and 1,100 sq ft for MIG-2. However, in cities like Thiruvananthapuram, real estate projects are planned at fairly bigger sizes.
Under credit-linked subsidy, beneficiaries belonging to economically weaker sections (EWS) and low income group (LIG) availing home loans from lenders, such as banks, housing finance companies and other such institutions would be eligible for an interest subsidy at the rate of 6.5 percent for a tenure of 15 years.