PMAY-U 2.0: Affordable Housing Scheme for Urban Poor and Middle-Class Families
The Union Cabinet has approved the Pradhan Mantri Awas Yojana-Urban (PMAY-U) 2.0, a scheme to provide affordable housing to one crore urban poor and middle-class families.
Pmayu 20Affordable HousingUrban PoorMiddleclass FamiliesInterest Subsidy SchemeReal Estate PuneAug 14, 2024
Under the PMAY-U 2.0, families belonging to economically weaker sections, low-income groups, or middle-income groups having no pucca house anywhere in the country are eligible to purchase or construct a house. EWS households are families with an annual income up to Rs 3 lakh, while 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 will provide subsidies on home loans for EWS, LIG, and MIG families under the Interest Subsidy Scheme. Beneficiaries taking loan up to Rs 25 lakh for house value up to 35 lakh will be eligible for 4 per cent interest subsidy on the first Rs 8 lakh loan for up to 12 years.
Experts believe that PMAY-U 2.0 has the potential to significantly impact urban housing affordability and quality of life. Prashant Sharma, President, NAREDCO Maharashtra, said that the approval of PMAY-U 2.0 marks a monumental step in addressing the housing needs of our urban population, particularly the economically weaker sections and middle-class families.
The scheme also strengthens the collaborative framework between the government and private sector, essential for realising the goal of inclusive urban development. Pritam Chivukula, Vice President, CREDAI-MCHI and Co-Founder & Director, Tridhaatu Realty, said that the comprehensive financial assistance of Rs 2.30 lakh crore reflects a strong commitment to address the housing shortage and improve living standards across urban areas.
Rajeev Ranjan, Co-Founder & CEO, The Mentors Real Estate Advisory, too highlighted that the emphasis on affordable housing will likely spur demand in the sector, paving the way for innovative housing solutions and partnerships between public and private sectors.
NAREDCO Maharashtra is a leading real estate body that promotes the development of the real estate sector in Maharashtra. CREDAI-MCHI is a real estate developers' association that aims to promote the growth of the real estate sector in Mumbai and its surrounding areas. The Mentors Real Estate Advisory is a real estate consulting firm that provides advisory services to real estate developers and investors.
Frequently Asked Questions
What is PMAY-U 2.0?
PMAY-U 2.0 is a scheme launched by the government to provide affordable housing to one crore urban poor and middle-class families.
Who is eligible for PMAY-U 2.0?
Families belonging to economically weaker sections, low-income groups, or middle-income groups having no pucca house anywhere in the country are eligible for PMAY-U 2.0.
What is the interest subsidy scheme under PMAY-U 2.0?
The government will provide 4 per cent interest subsidy on the first Rs 8 lakh loan for up to 12 years to beneficiaries taking loan up to Rs 25 lakh for house value up to 35 lakh.
How much financial assistance will the government provide under PMAY-U 2.0?
The government will provide financial assistance of Rs 2.30 lakh crore to states and Union Territories to construct, purchase, or rent a house at an affordable cost in urban areas over the next five years.
What is the aim of PMAY-U 2.0?
The aim of PMAY-U 2.0 is to provide affordable housing to one crore urban poor and middle-class families and improve their quality of life.
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