Government Approves PMAY-2.0: 10 Million Affordable Homes for Urban Poor and Middle Class
The Cabinet has given its nod to the Pradhan Mantri Awas Yojana-Urban (PMAY-U) 2.0, aiming to provide financial assistance to 1 crore urban poor and middle-class families to build, purchase or rent a house at an affordable cost.
Pmayu 20Affordable HousingUrban PoorMiddle ClassGovernment SubsidyReal EstateAug 10, 2024
The PMAY-U 2.0 will offer financial assistance to eligible beneficiaries for the construction of houses. The assistance provided is Rs 1.2 lakh in plain areas and Rs 1.3 lakh in North Eastern Region States and Hill States like Himachal Pradesh, Uttarakhand, and Union Territories of Jammu & Kashmir and Ladakh.
The government has undertaken an ambitious project to construct 10 million residential units for the benefit of urban lower-income and middle-class households. This project entails a substantial investment of Rs 10 lakh crore, which includes a government subsidy amounting to Rs 2.3 lakh crore.
In the initial phase of the PMAY-U 2.0, a total of 1.18 crore houses have been authorised, of which over 85.5 lakh houses have been successfully built and handed over to the rightful recipients.
The PMAY-U 2.0 is a crucial step towards addressing the housing needs of one crore families, ensuring that every citizen leads a better quality of life. The scheme is designed to benefit families belonging to economically weaker sections, low-income group, or middle-income group having no pucca house anywhere in the country.
EWS households are families with an annual income up to Rs 3 lakh. LIG households are families with an annual income from Rs 3 lakh up to Rs 6 lakh. MIG households are families with an annual income from Rs 6 lakh up to Rs 9 lakh.
The government has also increased the corpus fund of Credit Risk Guarantee Fund Trust (CRGFT) 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.
Furthermore, the government has introduced the Interest Subsidy Scheme, aiming to extend subsidies on home loans for economically weaker sections and lower and mid-income group families. Qualified beneficiaries securing a loan up to Rs 25 lakh with a house value up to Rs 35 lakh will receive a 4% interest subsidy on the first Rs 8 lakh loan for up to a 12-year tenure.
Frequently Asked Questions
What is the main objective of the PMAY-U 2.0 scheme?
The main objective of the PMAY-U 2.0 scheme is to provide financial assistance to 1 crore urban poor and middle-class families to construct, purchase or rent a house at an affordable cost.
How much financial assistance will be provided to eligible beneficiaries under the PMAY-U 2.0 scheme?
The assistance provided is Rs 1.2 lakh in plain areas and Rs 1.3 lakh in North Eastern Region States and Hill States like Himachal Pradesh, Uttarakhand, and Union Territories of Jammu & Kashmir and Ladakh.
What is the total investment required for the PMAY-U 2.0 scheme?
The total investment required for the PMAY-U 2.0 scheme is Rs 10 lakh crore, which includes a government subsidy amounting to Rs 2.3 lakh crore.
Who are eligible to benefit from the PMAY-U 2.0 scheme?
Families belonging to economically weaker sections, low-income group, or middle-income group having no pucca house anywhere in the country are eligible to benefit from the PMAY-U 2.0 scheme.
What is the Interest Subsidy Scheme introduced by the government?
The Interest Subsidy Scheme aims to extend subsidies on home loans for economically weaker sections and lower and mid-income group families. Qualified beneficiaries securing a loan up to Rs 25 lakh with a house value up to Rs 35 lakh will receive a 4% interest subsidy on the first Rs 8 lakh loan for up to a 12-year tenure.
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