PMAY U 2.0: Affordable Housing with Interest Subsidy Up to ₹1.80 Lakh

Pradhan Mantri Awas Yojana Urban (PMAY U) 2.0

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Pradhan Mantri Awas Yojana Urban (PMAY U) 2.0

Pradhan Mantri Awas Yojana Urban (PMAY U) 2.0 is one of the major flagship programmes implemented by the Government of India aimed at providing affordable housing to eligible families in urban areas across India. Through this initiative, the government aims to make homeownership more achievable for economically weaker sections (EWS), low-income groups (LIG), and middle-income groups (MIG) by offering substantial interest subsidies on Home Loans. The mission of PMAY U 2.0 is aligned with the vision of ‘Housing for All’, focusing on increasing homeownership in urban centres where housing affordability remains a challenge.

Benefits of PMAY U 2.0

Interest Subsidy

Beneficiaries can avail of an interest subsidy of up to Rs.1.80 Lakh under the Interest Subsidy Scheme (ISS), which can make homeownership more affordable.

Maximum House Value:

Homebuyers can purchase homes valued up to Rs. 35 Lakh under the PMAY U 2.0 initiative. The scheme allows a maximum loan value of Rs. 25 Lakh, providing flexibility in financing your home purchase.

Five-Year Lock-in Period:

The scheme mandates a five-year lock-in period from the date of the first loan disbursal, ensuring housing stability for beneficiaries.

Empowering Women through Ownership:

Under PMAY U 2.0, the property must be registered in the name of the female head of the household or jointly with her spouse. This provision aims to promote women’s ownership of homes and secure their financial future.

Also Read: Pradhan Mantri Awas Yojana Old Scheme

Eligibility Criteria for PMAY U 2.0

The eligibility for the PMAY U 2.0 scheme is based on family income, ownership status, and the absence of a permanent house. Here are the main eligibility criteria:

Here, a beneficiary household/family can comprise a husband, wife, and unmarried sons and/or unmarried daughters
Beneficiary household/family must not own a ‘pucca house’ (a permanent, all-weather dwelling) anywhere in India
Beneficiary household/family must meet the below annual income criteria
- EWS (Economically Weaker Section): Families with an annual household income of up to Rs.3 Lakh
- LIG (Low Income Group): Families with an annual household income between Rs.3 Lakh and Rs.6 Lakh
- MIG (Middle Income Group): Families with an annual household income between Rs.6 Lakh and Rs.9 Lakh
All family members must have an Aadhaar or Virtual ID linked to their details for verification.

Interest Subsidy Scheme (ISS)

The most significant benefit of PMAY U 2.0 is the Interest Subsidy Scheme (ISS), which allows eligible beneficiaries to receive a subsidy of up to Rs.1.80 Lakh on their Home Loan. This subsidy is credited directly to the beneficiary’s loan account.

Loan Value: The maximum loan value eligible for subsidy under this scheme is Rs.25 Lakh.
Home Value: The maximum value of a house under the scheme is Rs.35 Lakh.
Carpet Area: The carpet area for eligible homes is up to 120 sq. m.
Lock-in Period: A mandatory 5-year lock-in period applies from the date of the first loan disbursal, during which the property cannot be sold or transferred.

Women Ownership – A Step Towards Empowerment

PMAY U 2.0 emphasises the importance of women’s ownership of property. Under the scheme, homes should be registered in the name of the female head of the household, or jointly with her spouse.

This requirement is waived only in cases where there is no adult female in the family. For widowers, unmarried persons, or transgender individuals, the home can be registered in their name.

Exclusions under PMAY U 2.0

Certain exclusions apply to the beneficiaries of PMAY-U 2.0:

No Previous Benefits: Families that have been allotted a house under any Central, State, or local government housing scheme in the past 20 years are not eligible for PMAY U 2.0.
Property Sale: If the property is sold during the lock-in period. The original subsidy is non-transferable. The subsidy can be given only once for an eligible property.
Loan Balance Transfers: If the Home Loan is transferred to another financial institution, the subsidy cannot be claimed again. Beneficiaries must claim the subsidy from the original lender.
Non-Performing assets (NPA): Default in repayment by the borrower/beneficiary leading to loan turning NPA.

Unified Web Portal

Applicants interested and eligible to avail the benefits of the scheme need to register on the Unified Web Portal of PMAY 2.0 launched by the Ministry of Housing and Urban Affairs.

Applicants are requested to submit all necessary documents required to avail the benefits under this scheme on the above-mentioned portal.

With competitive interest rates, flexible repayment options, and a seamless loan application process, Bajaj Housing Finance can help you make the most of the PMAY U 2.0 scheme and ensure that you can own your dream home without any hassle.

The details mentioned above are extracts of the PMAY-U 2.0 scheme, borrowers are requested to go through the entire scheme as issued/amended by the Ministry of Housing and Urban Affairs (MoHUA) from time to time. BHFL is a facilitator of the PMAY-U 2.0 application, BHFL does not guarantee any receipt of the subsidy.

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