The Narendra Modi government, in its third term, has been making several announcements for the middle class. Along with relief in income tax
and benefits through GST, the government has also given support through the Pradhan Mantri Awas Yojana.
In August 2024, the government approved PMAY-Urban (2.0). The scheme’s goal is to build 1 crore houses in the next 5 years for urban poor and middle-class families.
For this, the total investment will be ₹10 lakh crore, out of which ₹2.30 lakh crore will be given as government subsidy.
Who Can Benefit from the Scheme?
The scheme is meant for families from:
Economically Weaker Section (EWS): Annual income up to ₹3 lakh
Low Income Group (LIG): Annual income between ₹3 lakh and ₹6 lakh
Middle Income Group (MIG): Annual income between ₹6 lakh and ₹9 lakh
These families should not own a permanent house anywhere in India.
PMAY-U has 4 main components:
Beneficiary-Led Construction (BLC)
Affordable Housing in Partnership (AHP)
Affordable Rental Housing (ARH)
Interest Subsidy Scheme (ISS)
Under ISS, EWS/LIG and MIG families can get a 4% interest subsidy on home loans up to ₹25 lakh.
The maximum subsidy is ₹1.80 lakh, which will be given in five annual installments.
Special Focus Groups
The scheme gives special attention to marginalized and vulnerable groups such as:
Slum dwellers
Scheduled Castes (SC) and Scheduled Tribes (ST)
Minorities
Widows and persons with disabilities
Sanitation workers, street vendors, artisans, Anganwadi workers
Families living in slums or chawls
These groups will receive special assistance to ensure affordable housing.
