Introduction & Scheme Guidelines
In order to encourage and increase home ownership in urban areas, Pradhan Mantri Awas Yojana Urban (PMAY U) 2.0 – under `Housing for All’ Mission will be implemented for 5 years from 01.09.2024. This seeks to provide Central Assistance to all eligible beneficiaries/households/implementing agencies through States/Union Territories (UTs) /Primary Lending Institutions (PLIs) to construct/purchase a house at an affordable cost, focusing on increasing home ownership in urban areas. The Scheme will be implemented by way of Interest Subsidy Scheme (ISS)
Home Ownership
The houses constructed/acquired/purchased with Central Assistance under the Scheme should be in the name of the female head of the household or in the joint name of the male head of the household and his wife and only in cases where there is no adult female member in the family, the house can be in the name of male member of the household. To enable the applicant to avail benefit of PMAY-U 2.0, the inclusion of name of female member of the family in registered title deed/sale deed of the house acquired/purchased during the Mission period is essential.
Eligibility criteria:
The eligibility for the PMAY U 2.0 scheme is based on family income, ownership status and nonavailability of own permanent house. Here are the main eligibility criteria
- Beneficiary household/family can comprise husband, wife and unmarried sons and/or unmarried daughters.
- Beneficiary household/family must not own a `pucca house’ (a permanent, all-weather dwelling) anywhere in India
- Beneficiary household/family must meet annual income criteria indicated below
1.EWS (Economically Weaker Section): Families with an annual household income
of up to Rs.3 Lakh
2.LIG (Low Income Group): Families with an annual household income between
Rs.3 Lakh and Rs.6 Lakh
3.MIG (Middle Income Group): Families with an annual household income between
Rs.6 Lakh and Rs.9 Lakh
All family members must have an Aadhaar or Virtual ID linked to their details for verification.
Interest Subsidy
The most significant benefit of PMAY U 2.0 is the Interest Subsidy Scheme (ISS), which allows eligible beneficiaries to receive a subsidy of up to Rs.1.80 Lakh on their home loan and maximum benefit of interest subsidy Net Present Value will be Rs.1.50 Lakh
- Loan Value: The maximum loan value eligible for subsidy under this scheme is Rs.25 Lakh.
- Home Value: The maximum value of a house under the scheme is Rs.35 Lakh
- Carpet Area: The carpet area for eligible homes is up to 120 Sq Mtrs
- Lock-in Period: A mandatory 5 year lock-in period applies from the date of the first loan disbursal, during which the property cannot be sold or transferred
Women Ownership – A Step Towards Empowerment:
PMAY U 2.0 emphasises the importance of women’s ownership of property. Under the scheme, homes should be registered in the name of the female head of the household, or jointly with her spouse. This requirement is waived only in cases where there is no adult female in the family. For widowers, unmarried persons, or transgender individuals, the home can be registered in their name.
Exclusions under PMAY U 2.0:
Certain exclusions apply to the beneficiaries of PMAY –U 2.0
- No Previous Benefits: Families that have been allotted a house under any Central, State, or Local Government Housing Scheme in the past 20 years, are not eligible for PMAY-U 2.0
- Property Sale: If the property is sold during the lock-in period, the original subsidy is nontransferrable. The subsidy can be given only once for an eligible property.
- Loan Balance Transfers: If the Home Loan is transferred to another financial institution, the subsidy cannot be claimed again. Beneficiaries must claim the subsidy from the original lender.
- Non-Performing Assets (NPAs): Default in repayment by the borrower/beneficiary leading to loan turning NPA
Unified Web Portal
Applicants interested and eligible to avail the benefits of the scheme need to register on the Unified Web
Portal of PMAY-U 2.0 launched by the Ministry of Housing and Urban Affairs.
Applicants are requested to submit all necessary documents required to avail the benefits under this scheme
on the above mentioned portal.