Pradhan Mantri Awas Yojana- Urban 2.0 (PMAY-U 2.0)

In a largely populated country like India, where a significant portion of the population resides in Tier 2 and Tier 3 regions, making housing a key aspect of social and economic development. Building on the experiences and learnings from the first phase of PMAY, the Government of India announced the launch of Pradhan Mantri Awas Yojana - Urban 2.0 (PMAY-U 2.0) with the vision of "Housing for All" by focusing on the needs of weaker sections and middle-class families.

PMAY-U 2.0, an upgraded version of the original scheme, focuses on affordability, sustainability, and inclusivity in urban housing. The scheme features innovative technologies, eco-friendly and disaster-resilient construction, and financial incentives for stakeholders.

Empowering Homeownership: IIFL Home Finance's PMAY Impact

*Data as on FY 2021-23

Verticals of PMAY-U 2.0 Scheme

Pradhan Mantri Awas Yojana- Urban 2.0 (PMAY-U 2.0) will be implemented through four verticals designed to meet the diverse housing needs of urban citizens.

1. Interest Subsidy Scheme (ISS)

   This scheme offers financial relief by providing interest subsidies on housing loans for purchasing or constructing houses. It is available for beneficiaries from EWS, LIG, and MIG categories, subject to specific income and loan criteria.

2. Beneficiary-Led Construction (BLC)

   The BLC scheme is designed to help EWS beneficiaries construct or strengthen their houses on their own. Financial assistance from the central government is provided in instalments, linked to the progress of construction.

3. Affordable Housing in Partnership (AHP)

   This vertical on building affordable housing projects through collaborations with public and private agencies, ensuring that at least 25% of the houses in each project are reserved for EWS beneficiaries.

4. Affordable Rental Housing (ARH)

   This vertical in the PMAY Urban 2.0 is aimed at providing affordable rental housing to urban migrants and low-income groups. It is implemented through two approaches:

   • Repurposing existing, vacant government-funded houses.

   • Constructing new rental units to meet demand.

Interest Subsidy Scheme (ISS) under PMAY-U 2.0

PMAY-U 2.0 subsidy, provided under the Interest Subsidy Scheme, offers financial assistance to reduce the burden of housing loan interest for eligible beneficiaries.

1. Loan Coverage: PM Awas Yojana Urban 2.0 subsidy is applicable for housing loans up to ₹25 lakh, and the property value must not exceed ₹35 lakh.

2. Subsidy Amount: Beneficiaries are entitled to an interest subsidy of 4% on the first ₹8 lakh of the loan amount. The subsidy is disbursed in five annual instalments. The maximum benefit amounts to ₹1.80 lakh, with a Net Present Value (NPV) of ₹1.50 lakh.

3. Process: The home loan subsidy is credited directly to the loan account of the beneficiary through Primary Lending Institutions (PLIs). This reduces the principal amount of the loan, thereby lowering the overall repayment burden.

Click here to calculate ISS Subsidy under PMAY U 2.0

Who’s eligible for PMAY-Urban 2.0?

PMAY-U 2.0 aims to provide affordable housing to eligible urban families. Individuals or families can apply for the PMAY-U 2.0 if they fulfill certain conditions.

PMAY-U 2.0 also prioritises support for special focused groups. Widows, single women, differently-abled persons, senior citizens, transgenders, individuals from Scheduled Castes, Scheduled Tribes, and minority communities, as well as people living in slums or chawls, are given preference under the scheme.

Families that have availed benefits under any government housing scheme in the last 20 years are not eligible for PMAY Urban 2.0.

How to apply for PMAY-U 2.0 under ISS?

Applying online for the Pradhan Mantri Awas Yojana - Urban 2.0 is a straightforward process. Here’s a step-by-step guide on how to apply for PMAY-U 2.0:

Step 1: Interested beneficiary who wants to own a house under PMAY-U 2.0 can register herself/himself on the PMAY-U 2.0 website (https://pmay-urban.gov.in/), wherein it is required to click on ‘Apply for PMAY-U 2.0’ tab The system would then direct the user to PMAY-U 2.0 website. To register, the user can click on the 3rd button ‘Apply for PMAY-U 2.0.’

Step 2: The system would successfully take the user to the Instruction of PMAY-U 2.0 page. Read the instructions carefully. Keep the required documents handy and proceed ahead to avail the benefit

Step 3: The user will be required to undergo the eligibility check for the scheme by entering annual income and choosing the relevant scheme vertical as per user’s needs, whether it's BLC, AHP, or ISS.

Step 4: Once eligibility check is completed, the user shall give consent for Aadhaar authentication and complete the required verification.

For detailed instructions, Click here

List of documents required for PMAY-U 2.0

To apply for Pradhan Mantri Awas Yojana- Urban 2.0 (PMAY-U 2.0), applicants are required to submit the following set of documents to ensure a smooth registration process.

1. Applicant's Aadhaar details (Aadhaar number, name as per Aadhaar, date of birth)

2. Aadhaar details of family members (Aadhaar number, name as per Aadhaar, date of birth)

3. Active bank account details of the applicant (account number, bank name, branch, IFSC code) linked with Aadhaar

4. Income proof (Only PDF file, Size upto 100kb)

5. Land document (In case of BLC vertical). (Only PDF file, Size upto 1mb.)

FAQs

1. Who is eligible for PMAY-U 2.0 scheme?

Ans. Families belonging to EWS, LIG, and MIG segments, living in urban areas, and having no pucca house anywhere in the country are eligible.

2. How much subsidy is given for Pradhan Mantri Awas Yojana - Urban (PMAY-U)?

Ans.Under PMAY-U 2.0, a financial subsidy of ₹1.80 lakh is provided under ISS for each eligible house.

3. Can I apply for PMAY-U 2.0 subsidy now?

Ans. Yes, the online application process for PMAY-U 2.0 is now open.

4. How to apply for PMAY-U 2.0 online?

Ans. Visit the official PMAY-U portal at pmay-urban.gov.in.

1. Click on the 'Apply for PMAY-U 2.0' option.

2. Provide your Aadhaar details and income proof.

3. Fill out the application form with the required details.

4. Submit the completed application form.

5. Is the PMAY-U 2.0 scheme available now?

Ans.Yes, PMAY-U 2.0 is currently available and the scheme is being implemented from 2024 to 2029.

6. Who is eligible for PM Awas Yojana?

Ans. Families belonging to EWS, LIG, and MIG segments, living in urban or rural areas, and having no pucca house anywhere in the country are eligible.

7. How to check the PMAY-U 2.0 house list?

Ans. You can check the Pradhan Mantri Awas Yojana- Urban 2.0 (PMAY-U 2.0) house list by visiting the official PMAY-U 2.0 portal and using the "Search Beneficiary" option. You'll need to enter your Aadhaar number to find your details.

8. How do I check my PMAY-U 2.0 eligibility?

Ans. Visit the official PMAY-U portal and enter your income details to check if you meet the Prime Minister Awas Yojana Urban 2.0 eligibility criteria.

9. Is PMAY-Urban still available?

Ans. Yes, PMAY-Urban is still available and the second phase (PMAY-U 2.0) has been implemented.

10. What is the amount of the PMAY Gramin subsidy?

Ans. Under PMAY Gramin, the subsidy amount can vary, but it typically ranges from ₹ 1.2 lakh to ₹ 1.5 lakh per house, depending on the state and specific project.

11. How many days it will take to approve subsidy for PMAY - Urban and PMAY - Gramin?

Ans. The approval time for PMAY subsidies can vary, but it generally takes a few weeks to a couple of months. It's best to check with the local authorities for specific timelines.

12. How many houses are there under PM Awas Yojana Urban 2.0?

Ans. Pradhan Mantri Awas Yojana- Urban 2.0 (PMAY-U 2.0) aims to finance housing for 1 crore urban poor and middle-class families.