Before Diwali, the central government led by Prime Minister Narendra Modi has announced a big benefit for the middle class.
The Union Ministry of Housing and Urban Affairs has approved the construction of 1.41 lakh new homes under the Pradhan Mantri Awas Yojana (PMAY) – Urban 2.0.
This scheme helps urban poor and middle-class families find affordable housing. Let’s look at the details.
Government’s Decision
The ministry has approved 1.41 lakh additional houses, taking the total approved units under PMAY-U to over 10 lakh.
These new houses will be built across 14 states and union territories: Assam, Andhra Pradesh, Chhattisgarh, Gujarat, Jammu
and Kashmir, Puducherry, Rajasthan, Tamil Nadu, Madhya Pradesh, Meghalaya, Haryana, Odisha, Uttarakhand, and Uttar Pradesh.
The Ministry stated that the scheme provides dignified housing to urban beneficiaries, improves inclusion, and enhances the quality of life for poor and vulnerable families. An important feature is women empowerment, as homes are either registered in the name of the female head of the household or in joint ownership.
About the Scheme
PMAY-U started on September 1, 2024, with a goal to provide pucca houses to 10 million families over five years.
It benefits families in the EWS (Economically Weaker Section), LIG (Low Income Group),
and MIG (Middle Income Group) who do not already own a pucca house anywhere in India.
The government has allocated ₹2.5 lakh crore as central assistance. The scheme has four main components:
Beneficiary-Led Construction (BLC)
Affordable Housing in Partnership (AHP)
Affordable Rental Housing (ARH)
Interest Subsidy Scheme (ISS) – Offers eligible families a lower interest rate on home loans to make buying or building a house easier.
Who Can Benefit
Families with annual income limits are eligible:
EWS: up to ₹3 lakh
LIG: up to ₹6 lakh
MIG: up to ₹9 lakh
Eligible beneficiaries can get a 4% interest subsidy on home loans up to ₹8 lakh, providing a relief of up to ₹1.8 lakh.
The subsidy is paid in five installments directly to the borrower’s loan account via DBT (Direct Benefit Transfer).
This applies only to active loan accounts where more than 50% of the principal is still unpaid.
This not only reduces EMI but also makes the dream of owning a home easier to achieve.
