LIG, MIG and HIG: Understanding India’s Housing Segments

Posted On July 25, 2024

The Indian real estate market has adapted to accommodate the increasing population and diverse socio-economic classes.

To address the housing needs of different income groups, the government classifies housing into various segments, including LIG (Low-Income Group), MIG (Middle-Income Group), and HIG (High-Income Group).

These classifications enable targeted policies and schemes to ensure affordable and accessible housing.

So, stay with us as we look at these categories’ differences and details to learn how they serve various income groups and the advantages.

What is LIG?

The Low-Income Group (LIG) encompasses individuals or families with an annual gross income ranging from Rs. 3 lakhs to Rs. 6 lakhs.

LIG housing often comprises single units in multi-story buildings or standalone units of up to 60 square meters.

These residences are planned to offer essential facilities like bathrooms, electricity, and water supply, aiming to ensure a satisfactory living standard for lower-income families.

What is MIG?

The Middle-Income Group (MIG) comprises two subcategories, MIG-I and MIG-II, based on annual income:

MIG-I: Designed for families with annual incomes ranging from Rs. 6 lakhs to Rs. 12 lakhs. Typically, residences in this category have a carpet area of up to 120 square meters.

MIG-II: Tailored for families with annual incomes between Rs. 12 lakhs and Rs. 18 lakhs. The carpet area for these housing units generally extends to up to 150 square meters.

MIG housing offers more amenities than LIG, such as firefighting equipment and sports courts. This reflects the higher income levels and needs of this group. These homes often come with better infrastructure and improved community facilities, catering to the lifestyle aspirations of middle-income families.

What is HIG?

The High-Income Group (HIG) comprises families with annual incomes exceeding Rs. 18 lakhs.

HIG homes are larger and more luxurious, often featuring spacious flats, duplexes, bungalows, and additional amenities such as lifts, gyms, grocery stores, and car parking facilities.

The HIG category is designed to cater to the affluent sections of society, offering them premium living experiences with state-of-the-art facilities and services.

LIG Vs MIG Vs HIG

Income Brackets:

• LIG: Annual household income between Rs. 3 lakhs and Rs. 6 lakhs.
• MIG-I: Annual household income between Rs. 6 lakhs and Rs. 12 lakhs.
• MIG-II: Annual household income between Rs. 12 lakhs and Rs. 18 lakhs.
• HIG: Annual household income above Rs. 18 lakhs.

Housing Specifications:

• LIG: Up to 60 square meters, basic amenities like electricity, water, and bathrooms.
• MIG-I: Up to 120 square meters, additional amenities such as firefighting equipment and sports courts.
• MIG-II: Up to 150 square meters, similar additional amenities.
• HIG: More than 150 square meters, luxurious amenities including lifts, gyms, and car parking.

Loan and Subsidy:

• LIG: Loan eligibility for up to 20 years with a 6.50% subsidy on home loan interest rates under the Pradhan Mantri Awas Yojana (PMAY).
• MIG: Loan eligibility up to 20 years, no subsidy after 2021.
• HIG: Loan eligibility up to 20 years, no subsidy.

Government Schemes for LIG, MIG and HIG

Pradhan Mantri Awas Yojana (PMAY)

Launched in 2015, the Pradhan Mantri Awas Yojana (PMAY) aims to provide affordable housing for LIG families.

Under the Credit Linked Subsidy Scheme (CLSS), LIG households can avail of a 6.50% subsidy on home loan interest rates. The scheme aims to construct 2.95 lakh pucca houses by 2024.

This ambitious project underscores the government’s commitment to reducing the housing deficit and improving living conditions for low-income families.

Maharashtra Housing and Development Authority (MHADA)

MHADA offers affordable homes in Maharashtra based on the monthly income of households:

• LIG: Rs. 25,000 to Rs. 50,000
• MIG: Rs. 50,000 to Rs. 75,000
• HIG: Above Rs. 75,000

Delhi Development Authority (DDA) Housing Scheme

Open to all Delhi residents aged 18 and above, this scheme is linked to the PMAY scheme and offers a range of housing options for LIG, MIG, and HIG categories.

The DDA scheme is renowned for its strong infrastructure and strategic locations, making it a preferred choice among Delhi residents.

West Bengal Housing Board Scheme

This scheme aims to provide 35,000 apartments through a lottery system, catering to various economic brackets:

• LIG: Monthly income of Rs. 10,000 to Rs. 15,000.
• MIG I: Monthly income of Rs. 15,000 to Rs. 25,000.
• MIG II: Monthly income of Rs. 25,000 to Rs. 40,000.
• HIG: Monthly income of more than Rs. 40,000.

The lottery system of the West Bengal Housing Board ensures a fair and transparent allocation of housing units to eligible families.

Rajiv Awas Yojana

Focussed on LIG families, this scheme aims to achieve a slum-free India by 2022, providing affordable housing units sized between 21 to 40 square meters.

The scheme emphasizes the creation of sustainable urban environments and the improvement of residents’ quality of life in informal settlements.

Tamil Nadu Housing Board Scheme

This scheme offers affordable housing for all income categories in Tamil Nadu. Eligibility is restricted to adult residents who do not own a house in Tamil Nadu or any other state and are not part of any other housing program.

The Tamil Nadu Housing Board ensures that housing development is inclusive and caters to the needs of the state’s diverse population.

As India progresses, the focus remains on creating sustainable, inclusive, and affordable housing solutions for all its citizens, with government initiatives continuing to play a pivotal role in bridging the housing gap and promoting equitable growth in the real estate sector.

These programs and policies are designed to support the journey toward homeownership for individuals belonging to LIG, MIG, or HIG categories, making the dream of owning a home a reality for many Indian families.