The central government has launched PMAY-U 2.0 (Pradhan Mantri Awas Yojana - Urban 2.0) to provide affordable housing under the vision of "Housing for All". If you have taken out a home loan to buy, build, or buy a resale property after September 1, 2024, you can get a grant of 4 per cent of your home loan under this scheme, which is valid for the next five years.
Who is eligible for the subsidy?
The scheme mainly targets Economically Weaker Sections (EWS), Lower Income Groups (LIG) and Middle Income Groups (MIG). Beneficiaries must meet the following income criteria:
- EWS: Annual income up to Rs 3 lakh
- LIG: Annual income up to Rs 6 lakh
- MIG: Annual income up to Rs 9 lakh
To qualify for this grant, applicants must provide proof of income. EWS families with annual income up to Rs 3 lakh can also get financial assistance of up to Rs 2.5 lakh to build a new house on their existing land.
Who is not eligible?
Beneficiaries who have been provided with a house under any government housing scheme in the last 20 years, whether rural or urban, are not eligible. In addition, businesses or households approved under the original PMAY-U but subsequently canceled after December 31, 2023, will not be included in PMAY-U 2.0.
Loan and subsidy details
Under this scheme, beneficiaries can get a 4 per cent interest subsidy on loans up to Rs 8 lakh for houses costing Rs 35 lakh or below. The assistance is valid for a loan period of up to 12 years. The beneficiaries will also receive a financial assistance of Rs 1.80 lakh distributed in five annual installments.
Four components of the scheme
PMAY-U 2.0 is implemented under four verticals:
- Beneficiary-led Construction (BLC): For individuals constructing new homes.
- Affordable Housing in Partnership (AHP): For EWS beneficiaries buying houses of 30-45 square meters, built by public or private agencies.
- Affordable Rental Housing Complexes (ARHCs): For migrants and workers.
- Credit-Linked Subsidy Scheme (CLSS): Offering interest subsidies on home loans.
Key highlights
- EWS beneficiaries can receive Rs 2.5 lakh financial support for purchasing homes under AHP.
- Houses under AHP will be constructed with a carpet area of 30-45 square meters and provided at affordable rates.
The PMAY-U 2.0 scheme is a significant step toward making housing more accessible and affordable, with the government aiming to fulfill its promise of ensuring a roof over every head.
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