The Modi Cabinet has approved the Pradhan Mantri Awas Yojana-Urban (PMAY-U) 2.0, under which to build, buy, or rent houses at low cost in urban areas over five years (2024-25 to 2028-29). Financial assistance will be provided to 1 crore urban poor and middle-class families.
PMAY-U is an important flagship initiative of the Central Government, designed to ensure that durable ‘pucca’ houses are provided to every eligible person in urban areas, regardless of weather conditions.
These People Will Get The Benefit
The Narendra Modi-led government has initiated the construction of a total of 10 million residential units for the benefit of low-income and middle-class families living in urban areas.
This ambitious project involves a substantial investment of Rs 10 lakh crore, which includes a government subsidy of Rs 2.3 lakh crore.
In the initial phase of PMAY-U 2.0, a total of 1.18 crore houses have been authorized, out of which more than 85.5 lakh houses have been successfully constructed and handed over to the right beneficiaries.
The Aim Is To Benefit The EWS Family
EWS families are those families whose annual income is up to Rs 3 lakh. LIG families are those families whose annual income ranges from Rs 3 lakh to Rs 6 lakh. MIG families are those families whose annual income ranges from Rs 6 lakh to Rs 9 lakh.
Last year, in his speech on the occasion of August 15, PM Modi said that the weaker sections living in cities have to face many problems. Middle-class families are dreaming of buying their own house.
We are coming up with a new scheme in the coming years, which will benefit those families who live in cities but are living in rented houses, slums, chawls, and unauthorized colonies.
If they want to build their own house, we will help them by giving relief in interest rates and loans from banks, which will help them save lakhs of rupees.
The Government Will Give A Subsidy
The corpus fund of the Credit Risk Guarantee Fund Trust (CRGFT) has been increased from Rs 1,000 crore to Rs 3,000 crore to provide the benefit of credit risk guarantee on affordable housing loans from banks or housing finance companies.
Apart from this, the government has also launched the Interest Subsidy Scheme, which aims to increase subsidies on home loans for economically weaker sections and low and middle-income group families.
Eligible beneficiaries availing loans up to Rs 25 lakh with home value up to Rs 35 lakh will get a 4% interest subsidy on the first Rs 8 lakh of loan for a tenure of 12 years.
A maximum subsidy of Rs 1.8 lakh will be distributed to eligible beneficiaries in 5-year installments through a push-button mechanism. Beneficiaries will get access to their accounts through a website, OTP, or smart card.