PMAY-U 2.0 Approved: ₹2.30 Lakh Crore for 1 Crore Urban Families
The Credit Risk Guarantee Fund Trust’s corpus will increase to ₹3,000 crore to enhance guarantees for affordable housing loans.
Ashwini Vaishnav was inducted into the Ministry of Narendra Modi's third stint in June 2024.
The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved Pradhan Mantri Awas Yojana-Urban (PMAY-U) 2.0, allocating ₹2.30 lakh crore to assist 1 crore urban poor and middle-class families over the next five years. The scheme aims to support affordable housing construction, purchase, or rental.
PMAY-U, a major government initiative, has already sanctioned 1.18 crore houses, with over 85.5 lakh completed. Following Prime Minister Modi’s August 15, 2023, announcement, the Cabinet expanded the program to cover an additional 3 crore households, with a total investment of ₹10 lakh crore.
The Credit Risk Guarantee Fund Trust’s corpus will increase to ₹3,000 crore to enhance guarantees for affordable housing loans. Management will shift to the National Credit Guarantee Company (NCGTC), with new guidelines from the Ministry of Housing & Urban Affairs.
Eligibility:
EWS: Annual income up to ₹3 lakh
LIG: Annual income between ₹3 lakh and ₹6 lakh
MIG: Annual income between ₹6 lakh and ₹9 lakh
Components:
1. Beneficiary-Led Construction (BLC): Financial aid for EWS families to build homes on their land.
2. Affordable Housing in Partnership (AHP): Support for EWS beneficiaries acquiring homes through partnerships, with a Technology Innovation Grant (TIG) of ₹1,000 per sqm/unit.
3. Affordable Rental Housing (ARH): Rental housing creation for workers and students, using existing or new construction models, with TIG support of ₹3,000 per sqm from the Central Government and ₹2,000 per sqm from State/UTs.
4. Interest Subsidy Scheme (ISS): 4% interest subsidy on home loans up to ₹25 lakh for houses valued up to ₹35 lakh, with a maximum subsidy of ₹1.80 lakh over five years.
Funding Mechanism:
AHP/BLC: ₹2.50 lakh per unit, with costs shared among the central government, States/UTs, and beneficiaries.
ISS: Up to ₹1.80 lakh in five-year installments.
PMAY-U 2.0 will be a Centrally Sponsored Scheme (CSS), with the ISS as a Central Sector Scheme
