The central government has approved the Pradhan Mantri Awas Yojana-Urban 2.0 scheme.
This scheme will see the construction of one crore affordable houses for urban poor and middle-class families.
Approved on Friday during a cabinet meeting led by Prime Minister Narendra Modi, the scheme will receive a subsidy of Rs 2.30 lakh crore.
The government will provide financial aid for building houses in urban areas under this scheme.
1.18 crore houses were approved in the first phase
In the first phase of the Pradhan Mantri Awas Yojana-Urban, approval was granted to build 1.18 crore houses, of which 85.5 lakh have been completed.
Additionally, the government will now allocate Rs 3000 crore to the Credit Risk Guarantee Fund Trust, up from the previous Rs 1000 crore.
This fund supports banks and housing finance companies in providing loans to economically weaker individuals for home construction.
The fund will now be managed by the National Credit Guarantee Company, replacing the National Housing Bank.
EWS, LIG and MIG will get benefit
The scheme will include people who do not yet have a permanent home. Individuals with an annual income up to Rs 3 lakh will fall into the EWS category, those with Rs 3 to 6 lakh will be in the LIG category, and those with Rs 6 to 9 lakh will be in the MIG category.
Under the scheme, if you lack land, the state government or union territory will provide a plot.
Additionally, housing vouchers will be given to those purchasing homes in private projects.
This time, the scheme includes rental housing as well. If you don’t want to buy or build a house, you can choose to rent one instead.
A subsidy of Rs 1.80 lakh will be provided on home loans
Additionally, the scheme offers an interest subsidy to individuals in the EWS, LIG, and MIG categories who take a home loan of up to Rs 25 lakh for a house worth up to Rs 35 lakh.
The subsidy of Rs 1.80 lakh will be provided in installments over 5 years.
