PMAY 2.0: Apply for Home Loans Up to ₹25 Lakh with Interest Subsidy

The central government, led by Prime Minister Modi, has launched PM Awas Yojana 2.0. This scheme will provide financial assistance to people for building houses. In August 2024, the Union Cabinet approved PMAY 2.0 for economically weaker sections (EWS) and middle-class families in urban areas. Under this scheme, 1 crore new houses will be constructed.

According to the Ministry of Housing and Urban Affairs, ₹2.30 lakh will be sanctioned per unit. In the previous phase, 1.18 crore houses were approved for urban areas, and over 85.5 lakh houses have already been constructed and handed over to beneficiaries.

This scheme will be implemented across India through various programs like beneficiary-led construction (BLC), affordable housing in partnership (AHP), affordable rental housing (ARH), and the interest subsidy scheme (ISS). Online applications are now open for 1 crore new houses under Pradhan Mantri Awas Yojana-Urban 2.0, and you can also apply online.

Eligibility Criteria for Pradhan Mantri Awas Yojana 2.0

1. Beneficiary-Led Construction (BLC):

• Financial assistance of up to ₹2.5 lakh is provided to eligible families with an annual income of up to ₹3 lakh.
• The assistance is for constructing new pucca houses (all-weather habitable units) up to 45 sq. m. on their available land.

2. Affordable Housing in Partnership (AHP):

• Public or private agencies will construct affordable houses with a carpet area of 30-45 sq. m.
• These houses are allocated to eligible EWS beneficiaries with an annual income of up to ₹3 lakh.
• Financial assistance of up to ₹2.5 lakh is provided per EWS beneficiary.

3. Affordable Rental Housing (ARH):

• Short-term affordable housing is available for beneficiaries without the financial capability to construct or purchase a house.
• Beneficiaries include EWS (annual income up to ₹3 lakh) and LIG (annual income up to ₹6 lakh) families.
• Target groups include urban migrants, homeless individuals, destitute, industrial workers, working women, construction workers, and urban poor such as street vendors, rickshaw pullers, and other service providers.
• Migrants employed in market/trade associations, educational or healthcare institutions, the hospitality sector, and contract workers are also eligible.

4. Interest Subsidy Scheme (ISS):

• The subsidy is available on home loans sanctioned and disbursed on or after September 1, 2024.
• Beneficiaries include families from EWS, LIG, and MIG categories with annual incomes of up to ₹3 lakh, ₹6 lakh, and ₹9 lakh, respectively.
• The subsidy applies to the purchase, repurchase, or construction of houses.
• Beneficiaries must provide proof of income.

Documents Required for PM Awas Yojana

• Aadhaar Details: Aadhaar information of the applicant and their family members.
• Bank Account: Applicant’s bank account, which must be linked to Aadhaar.
• Income Certificate: Proof of annual income.
• Caste Certificate: Applicable if required under the eligibility criteria.
• Land Documents: Required if applying for financial assistance to construct a house on owned land.