The second phase of the Pradhan Mantri Awas Yojana – Urban 2.0 (PMAY-U 2.0) was initiated by the central government to provide housing finance to 1 crore urban poor, middle-class families, and economically disadvantaged groups (EWS) in metropolitan areas. Approval for the Pradhan Mantri Awas Yojana (PMAY 2.0) was granted by the Union Cabinet on August 9, 2024.
Individuals who have availed of a home loan for purchasing, constructing, or acquiring a resale property post-September 1, 2024, are eligible for a subsidy of 4% of their home loan under this scheme, which will be in effect for the next five years.
A financial subsidy of Rs 2.50 lakh will be granted for each of the one lakh new houses to be constructed under the PMAY 2.0 initiative over a span of five years starting from September 1, 2024.
PMAY-U 2.0 stands as a key government program aimed at offering durable housing solutions to eligible beneficiaries residing in urban areas. Individuals falling under specific jurisdictions may access benefits through either PMAY-G or PMAY-U 2.0.
This scheme is designed to foster comprehensive urban development while ensuring fairness among various segments of the population. It caters to the housing needs of slum residents, individuals from diverse income brackets, SC/STs, minorities, widows, persons with disabilities, women, and other marginalized groups within society.
Who is eligible for the subsidy?
The subsidy program primarily targets individuals from Economically Weaker Sections (EWS), Lower Income Groups (LIG), and Middle Income Groups (MIG). To be considered eligible for the subsidy, applicants must meet the following income criteria:
EWS: Annual income of up to Rs 3 lakh
LIG: Annual income of up to Rs 6 lakh
MIG: Annual income of up to Rs 9 lakh
It is essential for beneficiaries to provide proof of income to qualify for the subsidy. Additionally, EWS families with an annual income of up to Rs 3 lakh can receive financial assistance of up to Rs 2.5 lakh to construct a new house on their existing land.
Who does not qualify?
Recipients who have received housing through any government housing program in the past two decades, whether in rural or urban areas, are not eligible. Furthermore, entities or households approved under the original PMAY-U but later have their approval revoked after December 31, 2023, will not be considered under PMAY-U 2.0.
Loan and subsidy information
Under the PMAY-U 2.0 scheme, eligible recipients can avail a 4% interest subsidy on loans for housing units priced at Rs 35 lakh or less, with loan amounts up to Rs 8 lakh. This subsidy is applicable for a loan tenure of up to 12 years. Additionally, beneficiaries will receive a financial aid of Rs 1.80 lakh, disbursed in five annual installments.
Four components of the scheme
PMAY-U 2.0 operates under four key components:
- Beneficiary-led Construction (BLC): Catering to individuals building new homes.
- Affordable Housing in Partnership (AHP): Targeted at EWS beneficiaries purchasing homes ranging from 30-45 square meters, constructed by either public or private entities.
- Affordable Rental Housing Complexes (ARHCs): Aimed at providing housing solutions for migrants and workers.
- Credit-Linked Subsidy Scheme (CLSS): Providing interest subsidies on home loans.
Applicants who qualify for assistance according to the eligibility requirements of Pradhan Mantri Awas Yojana 2.0 are encouraged to submit their applications through the designated format on the PMAY-U 2.0 Unified Web Portal, Common Service Centres (CSC), or by visiting their respective Urban Local Bodies/Municipalities.
Documents needed for application process
To apply for housing under the PMAY-U 2.0 scheme, the Pradhan Mantri Awas Yojana-Urban 2.0 website specifies the following necessary documents:
Applicant’s Aadhaar details (Aadhaar number, name as per Aadhaar, date of birth)
Aad details of family members (Aadhaar number, name as per Aadhaar, date of birth)
Active bank account details of the applicant (account number, bank name, branch, IFSC code) linked with Aadhaar
Income proof (Only PDF file, size up to 200kb)
Caste/Community proof (In case of SC, ST, or OBC) (Only PDF file, size up to 200kb)
Land document (In case of BLC vertical) (Only PDF file, size up to 5mb)