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Benefits

PRADHAN MANTRI AWAS YOJNA

Scope

Pradhan Mantri Awas Yojana - Urban 2.0 (PMAY-U 2.0) – ‘Housing for All’ Mission for urban areas will implement Interest Subsidy Scheme (ISS) vertical as a Central Sector Scheme to expand institutional credit flow to the affordable housing sector.

Subsidy will be provided on home loans sanctioned and disbursed on or after 01.09.2024, to eligible beneficiaries of EWS/LIG and MIG for purchase/ re-purchase/construction of houses.

Eligibility

A beneficiary family will comprise of husband, wife, unmarried sons and/or unmarried daughters. Families belonging to EWS/LIG/MIG category, living in urban areas, having no pucca house [(an all-weather dwelling unit)] either in his/her name or in the name of any member of his/her family anywhere in any part of India, are eligible to purchase or construct a house under PMAY-U 2.0.

A beneficiary will be eligible for availing benefit under any of the verticals of PMAY-U 2.0 scheme. The beneficiary who has been allotted house under any of the housing scheme of Central Government, State/UT Government and Local Self Government in last 20 years in urban or rural areas, shall not be eligible to seek benefit under PMAY-U 2.0.

Beneficiary Family belongs to EWS, LIG and MIG category with an annual income of up to Rs.3 lakh, Rs.6 lakh and Rs.9 lakh, respectively will be eligible to avail the benefit of the Scheme.

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 when there is no adult female member in the family, the house can be in the name of male member of the household. In cases where the applicant is a widower, unmarried, separated person, or transgender, the house will be made in the individual’s name. In case of death of beneficiary(s), the legal heir of the beneficiary will get the benefit under the scheme.

To enable the applicant and to avail benefits of PMAY-U 2.0, the inclusion of name of female member of the family in title deed/sale deed of the house acquired/purchased during the Mission period, should also be allowed at a later stage and State/UT should make provision for exemption of additional stamp duty and/or registration charges for such cases.

An undertaking from the beneficiary will be taken as a declaration of the fulfilment of eligibility criteria of income and not owning a pucca house anywhere in India on his/her name or any other family members.

All eligible beneficiaries (including family members) should have an Aadhaar/ Aadhaar Virtual ID integrated with the details of beneficiaries. In case, any eligible beneficiary does not have an Aadhaar card/Aadhaar Virtual ID, States/UTs should ensure that Aadhaar/ Aadhaar Virtual ID enrolment of such beneficiary is done on priority.

Income Groups

Economically Weaker Section (EWS) - Households having an annual income up to Rs.3.0 lakh. States/UTs shall have the flexibility to redefine the annual income criteria as per local conditions with concurrence of the Ministry.

Low Income Group (LIG) -LIG households are defined as households having an annual income above Rs. 3 lakh and up to Rs. 6 lakh.

Middle Income Group (MIG) -MIG household are defined as households having an annual income above Rs. 6 lakh up to Rs. 9 lakh.

Quantum Of Finance

Maximum up to Rs.25 lakhs.

Subject to maintaining Loan to value (LTV) ratio and repaying Capacity.

Subsidy

A maximum release of interest subsidy of Rs.1.80 lakh shall be provided to eligible beneficiaries having a loan tenure of more than five years.

Households having income up to Rs.9 lakh, loan value up to Rs.25 lakh for property value up to Rs.35 lakh would be eligible for a subsidy at 4.0 % on first ?8 lakh for a tenure up to 12 years. The carpet area of houses under this component shall be up to 120sqmtr. Subsidy to the beneficiaries will be released in 5 equal yearly instalments.

The interest subsidy shall be at the rate of 4% (four percent) on the principal amount of the home loan for EWS, LIG and MIG segment, admissible for a maximum loan amount of ?8 (Eight) lakh, where maximum loan can be given up to Rs.25 (Twenty-Five) lakh, where minimum tenure of loan should be for 5 (Five) years. However, if the loan size is below Rs.8 (Eight) lakh, the subsidy will be limited to the loan amount. In no case Actual Subsidy will be more than Rs.1.80 lakh.

Detailed interest subsidy calculator can be accessed at https://pmaymis.gov.in/PMAYMIS2_2024/Content/html/Subsidy-Calculator.html

Margin

Loan Amount Margin
Loan up to Rs. 25 lac 15%

However, Cost of stamp duty, registration and other documentation charges may be added to the cost of the house/dwelling unit for the purpose of calculating LTV ratio in cases where the cost of the house/dwelling unit does not exceed Rs.10 lac.

Repayment Period

Up to age of 70 years or 30 years, including moratorium period, whichever is earlier.
Further, for availing benefit of subsidy, minimum tenure should be 5 (Five) years.

Security

Equitable/registered mortgage of the property.

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