Prime Minister Narendra Modi.
The Modi Cabinet has approved the Pradhan Mantri Awas Yojana-Urban (PMAY-U) 2.0, under which low-cost houses will be built, purchased or rented in urban areas for five years (2024-25 to 2028-29). It will be provided to 1 crore urban poor and middle-class families. PMAY-U is a major flagship initiative of the Central Government, designed to ensure that durable ‘pucca’ houses are provided to all eligible people in urban areas, irrespective of climatic conditions.
Under Pradhan Mantri Awas Yojana-Urban 2.0 (PMAY-U 2.0), eligible beneficiaries will be provided financial assistance for construction of houses. An assistance of Rs 1.2 lakh crore is provided in plain areas and Rs 1.3 lakh crore in states in the north-eastern region and hill states like Himachal Pradesh, Uttarakhand and the Union Territories of Jammu and Kashmir and Ladakh.
These people will get benefits.
The Narendra Modi-led government has initiated construction of a total of 10 million residential units for the benefit of low-income and middle-class families living in urban areas. This ambitious project entails a substantial investment of Rs 10 lakh crore, which includes a government subsidy of Rs 2.3 lakh crore. In the initial phase of PMAY-U 2.0, a total of 1.18 million houses were sanctioned, of which over 85.5 lakh were successfully constructed and handed over to the appropriate beneficiaries.
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In line with the Prime Minister’s vision, PMAY-U 2.0 with an investment of Rs 10 lakh crore will meet the housing needs of one crore families, ensuring that every citizen can live a better quality of life, the government said in a statement. Under PMAY-U 2.0, families belonging to the economically weaker section, low-income group or middle-income group who do not have a permanent home anywhere in the country are eligible to purchase or construct a house.
The goal is to benefit the EWS family
EWS families are those families whose annual income is up to Rs 3 lakh. LIG families are those families whose annual income is between Rs 3 lakh and Rs 6 lakh. MIG families are those families whose annual income is between Rs 6 lakh and Rs 9 lakh. Last year, in his speech on August 15, Prime Minister Modi had stated that the weaker sections living in cities have to face a lot of problems. Middle class families dream of buying their own house. We are coming up with a new scheme in the next few years, which will benefit those families who live in cities but live in rented houses, slums, chawls and unauthorised colonies. If they want to build their own house, we will help them by providing relief on interest rates and loans from banks, which will help them save thousands of rupees.
Government will give subsidy
The corpus fund of Credit Risk Guarantee Fund Trust (CRGFT) has been increased from Rs 1,000 crore to Rs 3,000 crore to provide the benefit of credit risk guarantee on affordable housing loans from banks or housing finance companies.
Apart from this, the government has also launched the Interest Subsidy Scheme, which aims at increasing the subsidy on home loans for economically weaker sections and low and middle income group families. Eligible beneficiaries availing a loan of up to Rs 25 lakh on a house value of up to Rs 35 lakh will get an interest subsidy of 4% on the first Rs 8 lakh of the loan for a period of 12 years. A maximum subsidy of Rs 1.8 lakh will be distributed to eligible beneficiaries in 5-year installments through a pulse mechanism. Beneficiaries will have access to their accounts through the website, OTP or smart card.
