The Narendra Modi government’s flagship housing initiative, Pradhan Mantri Awas Yojana-Urban 2.0 (PMAY-U), has seen some recent updates aimed at improving its efficiency and outreach. According to Union Minister Manohar Lal Khattar, a significant change in the scheme is the mandatory contribution of state governments in this second phase. Previously, there was no such requirement. This move comes after facing challenges during the first phase of the housing scheme, prompting the central government to enforce this additional criterion to ensure smoother implementation.
What is Pradhan Mantri Awas Yojana-Urban 2.0?
In a move to provide affordable housing to urban poor and middle-class families, the Modi government launched PMAY-U 2.0 during its first cabinet meeting after the Lok Sabha elections. The goal is to build an additional one crore houses over the next five years. The scheme will offer financial assistance to eligible beneficiaries through states, union territories (UTs), and primary lending institutions (PLIs). With a total outlay of Rs. 2.30 lakh crore, this ambitious housing program aims to reach economically weaker sections and middle-income families across the nation.
In its first phase, PMAY-Urban successfully sanctioned over 1.18 crore houses, with more than 85.5 lakh already constructed and handed over to beneficiaries. The second phase aims to add to these numbers with new guidelines and more robust participation from state governments.
Who Can Benefit From PMAY-U 2.0?
The scheme primarily targets the Economically Weaker Section (EWS), Low Income Group (LIG), and Middle Income Group (MIG) families. Here’s how the income criteria are defined:
- EWS Category: Annual income up to Rs. 3 lakh.
- LIG Category: Annual income between Rs. 3 lakh and Rs. 6 lakh.
- MIG Category: Annual income between Rs. 6 lakh and Rs. 9 lakh.
Subsidy and Financial Aid Under PMAY-Urban 2.0
One of the most attractive features of the PMAY-U 2.0 scheme is the interest subsidy on home loans. Beneficiaries are eligible for a total subsidy of Rs. 1.80 lakh, which is paid in five annual installments.
For individuals taking home loans of up to Rs. 25 lakh, a 4% interest subsidy is offered on the first Rs. 8 lakh of the loan. This subsidy applies to houses priced up to Rs. 35 lakh, making home ownership more affordable for low-income and middle-class families.
This subsidy makes it easier for eligible beneficiaries to afford a home, offering a significant financial cushion in a country where affordable housing remains a challenge.
