Pradhan Mantri Awas Yojana 2.0: The dream of a house will now come true

Pradhan Mantri Awas Yojana 2.0: The dream of a house will now come true

Pradhan Mantri Awas Yojana-Urban (PMAY-U) was launched by the Central Government in its first term. But the second phase of this ambitious scheme was approved in August 2024. The objective of this scheme is to make the dreams of urban poor and middle class families come true by helping them build houses.

Under the first phase, 1.18 crore houses were approved, out of which more than 85.5 lakh houses have been built and handed over to the beneficiaries. The rest of the houses are under construction. At the same time, under PMAY-U 2.0, the government has fixed an assistance amount of ₹ 2.30 lakh crore.

Who can avail the scheme?

People who fall into the following economic categories can avail this scheme:

1. Economically Weaker Section (EWS)
2. Lower Income Group (LIG)
3. Middle Income Group (MIG)

The beneficiary should not have any pucca house anywhere in India. Such families will be eligible for the scheme to buy or construct a house.

Definition of income group

EWS: Those whose annual income is up to ₹3 lakh.

LIG: Those whose annual income is between ₹3 lakh to ₹6 lakh.

MIG: Those whose annual income is between ₹6 lakh to ₹9 lakh.

Four implementation models of the scheme

1. Beneficiary Based Construction (BLC)
2. Affordable Housing in Public-Private Partnership (AHP)
3. Affordable Rental Housing (ARH)
4. Interest Subsidy Scheme (ISS)

What is BLC and AHP?

BLC: In this, central assistance is provided to eligible families of EWS category to build a new house on their land.

AHP: Affordable housing is built by public or private entities, which is made available to the beneficiaries of EWS category by giving financial assistance.

ARH (Affordable Rental Housing)

Under this scheme, adequate rental housing is built for urban migrants, industrial workers, working women, students and others.

Benefits of Interest Subsidy Scheme

Under this scheme, interest subsidy is provided on home loans.

For houses up to ₹35 lakh, subsidy is available on loans up to ₹25 lakh.

4% interest subsidy will be given on the first loan of Rs 8 lakh.

The subsidy amount will be up to ₹1.80 lakh, which will be given directly to the beneficiary in 5 annual installments.

Eligibility and Selection

Beneficiaries can choose any one of the four components of the scheme as per their eligibility and need. This scheme is being run in a transparent manner through the digital platform and push button system of the Central Government.

Pradhan Mantri Awas Yojana 2.0 is a big opportunity for urban poor and middle class families. This scheme not only helps them to realize the dream of a house but also takes a step towards a strong and self-reliant India.