PMAY-U 2.0: Modi Govt offers 4% Subsidy on Home Loans - Check Eligibility
Under the "Housing for All" objective, the federal government has started the Pradhan Mantri Awas Yojana-U 2.0 (Pradhan Mantri Awas Yojana-Urban 2.0) to offer affordable housing. Under this program, you can get a grant of 4% of your house loan if you take out a loan to purchase, construct, or purchase a resale property after september 1, 2024. This award is good for the next five years.
Who may receive the subsidy?Economically Weaker Sections (EWS), Lower Income Groups (LIG), and Middle-Income Groups (MIG) are the scheme's primary objectives. The following income requirements must be fulfilled by beneficiaries:
EWS: Up to Rs 3 lakh in annual income
LIG: Up to Rs 6 lakh in annual income
MIG: Up to Rs 9 lakh in annual income
To be eligible for this award, candidates need to provide proof of income. EWS households who earn up to Rs 3 lakh a year can also receive up to Rs 2.5 lakh in financial aid to construct a new home on their current property.
Who isn't qualified?
Eligibility is denied to recipients who have received a home under any government housing program within the previous 20 years, whether in an urban or rural area. Additionally, PMAY-U 2.0 will not include homes or enterprises that were accepted under the previous PMAY-U but were later revoked after december 31, 2023.
Details of loans and subsidies
Beneficiaries of this initiative are eligible for a 4% interest discount on loans up to Rs 8 lakh for homes that cost Rs 35 lakh or less. The aid is available for a maximum 12-year loan duration. Additionally, Rs 1.80 lakh in financial aid would be given to the winners in five-year increments.
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.