Income Ceiling for LIG raised by Union Government of India

The Union Governmentof India on 15 November 2012 decided to raise cap on the annual income which is required for qualification for the benefits under the present housing schemes for the Low Income Groups (LIG) as well as Economically Weaker Sections (EWS). This step on the part of the government will provide benefit to 20 lakh people.

The Ministry for Housing and Urban Poverty Alleviation (HUPA) raised the income criterion for EWS housings from 60000 Rupees per year initially to 1 Lakh Rupees now. This clearly indicates that people with household income below 1 Lakh Rupees will be able to avail benefits of EWS housing scheme. Likewise, the income bar for LIG category has been raised to 2 lakh Rupees now.

This decision will be implemented during the 12th Five Year Plan. Instructions have been given to the state governments as well as the banks so that the decision could be implemented effectively.

People will now be able to get benefits under the Rajiv Awas Yogna (RAY) and EWS Housing Schemes. Additionally, the Union Minister added that they have the target of including 20 lakh people under this plan. It is the big step because more people would qualify for the home loans now.

Definition of Economically Weaker Sections (EWS)

People falling within the income limit set by the Ministry of Urban Development fall under the category of Economically Weaker Sections (EWS). Ministry of Urban Development revised this income ceiling from Rs. 3,300 to Rs. 5,000. This income ceiling has been made applicable to loans for Interest Subsidy for Housing the Urban Poor Scheme (ISHUP) as well as Housing and Urban Development Corporation (HUDCO).