The Government has earmarked the income bar for economically weaker sections (EWS) and low-income category (LIG) to let people determine who will qualify for benefits under housing schemes such as Rajiv Awas Yojana.

According to the housing & urban poverty alleviation ministry, the government has increased the income bar for EWS to Rs 1 lakh or monthly income of up to Rs 8,334, and for LIG to Rs 2 lakh or monthly income of up to Rs 16,667.

Previously, the income bar for selection of beneficiaries for various housing schemes was an annual income of Rs 60,000 for EWS category and up to Rs 1.2 lakh for LIG category.

The decision to increase the bar on annual income was required to qualify for benefits under government's various housing schemes. Credit risk guarantee fund for aforementioned sections will benefit an estimated of 20 lakh people over the next 5 years.

Using Rs 1,000 crore credit risk guarantee fund, the ministry aims to provide credit risk guarantee to lenders against housing loans of up to Rs 5 lakh for new borrowers in the EWS and LIG categories.

Ajay Maken, housing & urban poverty alleviation minister, said, "The decision will ensure availability of bank loans for more poor people living in pathetic conditions in cities under credit guarantee fund scheme."

The ministry didn't revise the income bar for middle income group (MIG) and high-income group (HIG) categories, saying these categories didn't fall under its purview.