The Narendra Modi government’s ambitious Pradhan Mantri Awas Yojana-Urban (PMAY-U) 2.0 is set to transform the urban landscape of India.
Announced in the 2024 Union Budget, this scheme aims to provide affordable housing to millions of urban poor and middle-class families.
PAY-U
Launched in 2015, PMAY-U has already made significant strides in providing affordable housing. Over 85.5 lakh houses have been completed and delivered to beneficiaries, while others are under construction.
Interest Subsidy Scheme
One of the key features of PMAY-U is the interest subsidy scheme, which offers financial assistance to eligible beneficiaries.
This scheme mainly covers families from the Economically Section, Low Income family Group and Middle Income Group categories.
Benefits
Interest Subsidy- As mentioned earlier, eligible beneficiaries receive interest subsidies on their home loans.
Credit-Linked Subsidy Scheme (CLSS)- This scheme provides upfront subsidies to beneficiaries based on their income and loan amount.
In-Situ Redevelopment- This option allows for the redevelopment of existing slums and informal settlements.
Affordable Housing Projects- The government encourages developers to build affordable housing projects under PMAY-U.
Eligibility Criteria
EWS- Yearly income should be up to ₹ 3 lakh
LIG- Yearly income should be between ₹ 3 lakh and ₹ 6 lakh
MIG- Yearly income should be between ₹ 6 lakh and ₹ 9 lakh
Interest Subsidy
Loan Amount- Up to ₹ 25 lakh
Subsidy- 4% interest subsidy on the first ₹ 8 lakh for 12 years
House Value- Up to ₹ 35 lakh
Subsidy Amount- ₹ 1.80 lakh (disbursed in 5-yearly installments)
Accessing the Subsidy
Beneficiaries can check their account status through a website, OTP, or smart card. The subsidy will be issued in 5-yearly installments using a push-button mechanism.
PMAY-U 2.0 is a game-changer that promises to provide affordable housing to millions of Indians.
By offering interest subsidies and other benefits, the government aims to make homeownership a reality for those who have been struggling to achieve this dream.