If you have taken a home loan to buy a house, buy it in resale or build a house after 1 September 2024, then you can get a great subsidy of 4 percent on this loan from the Government of India. This scheme is for the next five years. In fact, the government has launched the Pradhan Mantri Awas Yojana-Urban 2.0 (PMAY-U 2.0) scheme last year. The aim of this scheme is to provide all-weather pucca houses to all eligible urban families across the country with the vision of 'Housing for All'. Under this scheme, EWS / LIG / MIG category families living in urban areas, who do not have a pucca house anywhere in the country, are eligible to buy or construct a house under PMAY-U 2.0.

How many income people will get subsidy

Under this scheme, only eligible beneficiaries of EWS/LIG and MIG get subsidy. Families belonging to EWS/LIG and MIG category having annual income up to ₹3 lakh, ₹6 lakh and ₹9 lakh respectively are eligible to avail this scheme. To be identified as WS/LIG and MIG under this scheme, an individual loan applicant has to provide proof of income. Individual eligible families belonging to EWS category having annual income up to Rs 3 lakh are given financial assistance of up to Rs 2.5 lakh to build new pucca houses up to 45 square meters on their available land.

Who will not be eligible for the scheme

The beneficiary will be eligible to get benefits under any vertical of PMAY-U 2.0 scheme. A beneficiary who has been allotted a house under any housing scheme of the Central Government, State/UT Government and Local Self Government in urban or rural areas in the last 20 years will not be eligible to get the benefit. Also, such houses sanctioned under PMAY-U, which have been reduced by the Central Sanctioning and Monitoring Committee (CSMC) after 31.12.2023 for any reason on the recommendation of the States/UTs, will not be sanctioned to those beneficiaries in PMAY-U 2.0.

4 components of the scheme

Pradhan Mantri Awas Yojana - Urban is implemented through four components. These include beneficiary-led construction, affordable housing in partnership, affordable rental housing and interest subsidy scheme. One of these has to be selected. Eligible beneficiaries are given central assistance of up to ₹ 1.80 lakh in five annual installments. If a home loan of up to ₹ 25 lakh is taken for a house worth up to ₹ 35 lakh, then the beneficiary will be eligible for 4 percent interest subsidy on the first loan of Rs 8 lakh for a period of 12 years.

The Affordable Housing Vertical in Partnership will provide financial assistance to EWS beneficiaries to purchase pucca houses. Under this vertical, affordable houses with carpet area of ​​30-45 sqm will be constructed by public/private agencies and made available for allotment to eligible beneficiaries of EWS category. Financial assistance up to Rs 2.5 lakh for each EWS (annual income up to Rs 3 lakh) flat on the purchase price of the property to the EWS beneficiary in AHP projects is provided jointly by central and state agencies.