Under the recently announced Pradhan Mantri Awas Yojana Scheme, there is a Credit Linked Subsidy Scheme for Middle Income Groups (CLSS-MIG). In this urban scheme, MIGs with annual incomes ranging from 6 lakhs INR to 18 lakhs INR per annum are eligible for a subsidy in interest rates for purchasing their first home. The scheme is expected to augment the housing sector if real estate developers are ready to provide compact spaces at lower prices, like the builders with flats in Tambaram specifically constructing units to deliver for this purpose. The subsidy scheme on home loan interests is a part of the “Housing for All” initiative. In this scheme, there is a 4% subsidy on interest rates for home loans up to 9 lakhs INR for the MIGs falling under the 12 lakhs INR per annum income and a 3% subsidy on interest rates for home loans up to 12 lakhs INR for MIGs with an income of 18 lakhs INR per annum. Additional loans over the limit can only be availed at the usual rate wit...