Pradhan Mantri Awas Yojana Urban – PMAY Urban

PMAY Urban – 2.0

Pradhan Mantri Awas Yojana – Urban 2.0 (PMAY-U 2.0) Scheme is an government scheme launched by PM Narendra Modi with a vision to provide pucca houses to all eligible urban households across the nation. Under the scheme, financial assistance of up to Rs 2.5 lakh crore (Rs 2.5 lakh per unit) will be provided to 1 crore urban poor and middle-class families to buy, construct or rent a house at an affordable cost in urban areas in 5 years starting from 01.09.2024.

Under the scheme, preference will be given to widows, single women, persons with disabilities, senior citizens, transgenders, persons belonging to scheduled castes/scheduled tribes, minorities and other weaker and vulnerable sections of the society. Special focus will be given to Safai Karmi, Street Vendors identified under the PM SVANidhi Scheme and different artisans under the Pradhan Mantri-Vishwakarma scheme, Anganwadi workers, building and other construction workers, residents of slums/chawls and other groups identified during the operation of PMAY-U 2.0.

Also Know: Features and Benefits of Pradhan Mantri Awas Yojana (PMAY)

Components/Verticals of PMAY-U 2.0

PMAY-U 2.0 addresses the affordable housing requirements of urban poor including the slum dwellers through the following programme verticals or components:

Interest Subsidy Scheme (ISS)

The ISS vertical will provide benefits of subsidy on home loans Subsidy will be provided on home loans sanctioned and disbursed on 01.09.2024 or after to eligible beneficiaries of EWS/LIG and MIG families for purchasing/ re-purchasing/constructing houses.

Beneficiaries taking loan up to Rs 25 lakh with house value up to 35 lakh will be eligible for 4% interest subsidy on the first Rs 8 lakh loan up to 12 years tenure. A maximum of Rs 1.8 lakh subsidy will be given to eligible beneficiaries in 5-yearly installments. Beneficiaries can access their accounts through websites, OTP or smart cards.

PMAY-U 2.0 will be implemented as Centrally Sponsored Scheme (CSS), except for the Interest Subsidy Scheme (ISS) component, which will be implemented as Central Sector Scheme.

Exclusions under ISS:

• The subsidy will be provided only once for a property. If the said property is sold to someone else, the purchaser can’t take benefit of ISS on this property.
• If two or more family members take combined or separate loans on the same property, they will be treated as the same family for calculation of family income and benefit.
• In case of balance transfer, beneficiaries will not be eligible to claim the benefit of interest subsidy again.
• If a person has not claimed interest subsidy from their first PLI, he/she shall not be eligible after balance transfer.
• Only loans of up to Rs 25 lakh with the house value up to Rs 35 lakh will be eligible for subsidy under this vertical. If the family income or property value as assessed by PLI for sanction of loan is higher than eligibility limit, the loan will not be eligible for subsidy.
• In case of any false declaration on income level by a beneficiary who has already availed the scheme benefit, he/she would be liable for legal proceedings under applicable laws.

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Subsidy for Beneficiary-led Construction (BLC) or Enhancement:

• Financial assistance will be provided to eligible beneficiaries belonging to EWS category for constructing a new house on their own available land. In case of landless beneficiaries, States/UTs at their own expense may provide heritable but non-transferable land rights (pattas) to the family. Also note that enhancing, extending and renovating an existing house is not permissible under the scheme.
• Houses constructed under this component shall have a combination of at least two rooms, kitchen and a toilet/bathroom and shall conform to the National Building Code (NBC) norms and other relevant Bureau of Indian Standards (BIS) codes.
• The carpet area of the new house should be of 30 to 45 sqm. If the available area of land is less than 30 sqm, a beneficiary/multiple beneficiaries can construct a multi-storeyed house of minimum 30 sqm house, subject to the approval of State Level Sanctioning and Monitoring Committee (SLSMC).
• Central Assistance shall be released in three installments of 40:40:20 ratio, considering the construction stage of the house.
• Beneficiaries will also be allowed to Geo-tag the progress of the houses through the applicable modalities.
• To avail assistance under BLC, beneficiaries shall approach the ULBs/ Implementing Agencies or register their demand through Unified Web Portal with necessary documents, including ownership proof of land and submit the application. Such beneficiaries may include families residing either in tenable slums or outside the slums/peripheral areas of the ULB.

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Affordable Housing in Partnership (AHP)

• Financial assistance will be provided to EWS beneficiaries for purchasing/availing allotment houses (30-45 sqm. carpet area) constructed by public/private sector agencies/parastatal agencies.
• Central assistance will be provided to beneficiaries through redeemable housing vouchers for purchasing houses in whitelisted private sector projects.
• Various state incentives will be extended to public/private projects
• In-Situ Slum Redevelopment of tenable Slums or Slum Resettlement

Affordable Rental Housing (ARH)

This component will create adequate rental housing for working women/industrial workers/urban migrants/homeless/destitute/students and other eligible beneficiaries. ARH shall ensure affordable and hygienic living spaces for urban dwellers who do not want to own a house but require housing for short term basis or those who do not have the financial capability to construct/buy a house.

This component will be implemented through two models:

• Model-1: Using the existing Government funded vacant houses by converting them into ARH under Public Private Partnership (PPP) mode or by public agencies.
• Model-2: Construct, operate and maintain rental housing by Private/Public Entities for urban poor, working women, employees of Industries, Industrial Estates, Institutions and other eligible EWS/LIG families.
• For projects constructed using innovative technologies, TIG at the rate of Rs 3,000 per sqm. shall be released by the Central Government while State/UT Government shall provide Rs 2,000 per sqm. as part of State Share.

PMAY Urban Home Loan EMI Calculator

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FAQs

1. What are the benefits offered under PMAY CLSS?

Ans. Under PMAY CLSS, the government offers an upfront interest subsidy at 6.5% for both Economically Weaker Section (EWS) and Low Income Group (LIG) categories for loans taken up to Rs. 6 lakh. For Middle Income Group-I (MIG-I), beneficiaries get an interest subsidy at 4% on home loans up to Rs. 9 lakh. For beneficiaries falling in the Middle Income Group-II (MIG-II), interest subsidy at 3% is offered on loans up to Rs. 12 lakh

2. Under PMAY CLSS, is it mandatory for a woman to own the property?

Ans. Yes, for applicants falling under the Lower Income Group (LIG) and Economically Weaker Sections (EWS) categories, woman house ownership is mandatory.

3. In PMAY CLSS, what do you mean by the ‘carpet area’?

Ans. The area enclosed within the walls of a house is known as the carpet area. This area does not include the thickness of the walls.

4. What do you mean by FAR in PMAY?

Ans. Let us take a look at the equation to quickly understand what FAR means:

Floor Area Ratio = Total covered area on all the floors x 100 divided by Plot area.

However, some cities or towns may have varied definitions. The definitions that have been promoted by the region will be considered under such conditions to remove any sort of confusion.

5. How long will the PMAY Housing for All Urban project last?

Ans. The PMAY project is supposed to last until March 31, 2022. However, till this date the government will ensure that all the regions in India have PMAY benefits. The construction and ultimately the beneficiaries moving in may take longer.

6. What is a Central Nodal Agency in PMAY?

Ans. Central Nodal Agencies (CNAs) are simply the direct concern offices identified by the Housing Ministry of Housing & Urban Affairs or Government to support and carry out the activities and functions concerning PMAY Credit linked subsidy.

7. What are Implementing Agencies and how are they different from Central Nodal Agencies?

Ans. Implementing agencies comprise of any Urban Local Bodies, Housing Boards, Development Authorities, etc. Unlike Central Nodal Agencies, the Implementing Agencies are picked by the State Government or SLSMC for the purpose of implementing missions under PMAY.