Pradhan Mantri Awas Yojana - Urban 2.0

Interest Subsidy Scheme

Pradhan Mantri Awas Yojana – Urban 2.0 (PMAY-U) is a government initiative designed to provide affordable housing solutions to urban families belonging to the Economically Weaker Section (EWS), Low-Income Group (LIG), and Middle-Income Group (MIG). This scheme is part of the broader vision of “Housing for All,” ensuring that eligible urban households have access to safe and secure housing.

Subsidy Details:

• This subsidy is available on home loans sanctioned and disbursed on or after 1st September 2024.
• The scheme provides an interest subsidy of 4.0% per annum on the first ₹8 lakh of the home loan for a tenure of up to 12 years.
• The PMAY subsidy up to 1.8 lakh will be disbursed by NHB in five equal annual installments of ₹36,000 each, provided the loan remains active (i.e. not delinquent or classified as an NPA), and has more than 50% of the principal outstanding at the time of release.

Note: Subsidy approval, disbursement, and turnaround time (TAT) are solely at the discretion of NHB (National Housing Bank).

Key Conditions:

• Aadhaar Requirement: All eligible beneficiaries, including family members, must have an Aadhaar or Aadhaar Virtual ID integrated with their details.
• Self-Undertaking: Beneficiaries must provide a self-undertaking under the Interest Subsidy Scheme (ISS).
• Demand Registration: Beneficiaries must register their demand through a unified web-portal.
• Layout Plan: The subsidy is contingent upon the submission of an approved layout plan as per the guidelines of the respective States/UTs. However, if there is an exemption, the layout plan may not be required.
• Geo-tagging: For completed house purchases – Geo-tagging must be done after the release of the first installment.
  For construction/under-construction houses – Geo-tagging must be done before each installment is released.
• Single Use of Subsidy: The interest subsidy can only be availed once for a property. If the property is sold, the new buyer cannot claim the subsidy on it.
• Loan Transfers: Beneficiaries who transfer their home loans to another financial institution (PLI) after availing of the subsidy will not be eligible to claim the subsidy again. If the subsidy was not claimed from the original lender, it cannot be claimed after the balance transfer.

Scheme Coverage:

The scheme covers all Urban Local Bodies (ULBs) and Urban Development Authorities (UDAs) where PMAY-U is being implemented, including newly constituted urban statutory towns post-Census 2011. These lists are tentative and will be updated as necessary to reflect any additions or dissolutions of urban statutory towns or development authorities. The updated list of areas where PMAY-U is being implemented can be obtained from here PMAY Urban Areas List