PMAY Urban 2.0: Interest Subsidy Scheme (ISS) for Affordable Housing

The Padhan Mantri Awas Yojana (PMAY) Urban is one of the innovative initiatives of the government. Through this scheme, the benefits of homeownership will be delivered to the urban families coming under the Economically Weaker Section (EWS), Low-Income Group (LIG), and Middle-Income Group (MIG). PMAY Urban is an interest subsidy scheme, specifically designed for its beneficiaries. This blog contains all details about the ISS of PMAY Urban 2.0 to determine if you can use it and how to take advantage of this opportunity.

 

Eligibility Criteria:

Before we get to the advantages, let's make sure you qualify:

 

Annual Household Income:

* For EWS: Up to ₹3 lakhs p.a.

* For LIG: Up to ₹6 lakhs p.a.

* For MIG: Up to ₹9 lakhs p.a.

 

Home Ownership:

• The applicant cannot own a pucca house anywhere in the nation.
• The house built or purchased under this scheme needs to be jointly owned by the spouses or the female head of the family. Exemption will lie at an instance when there is no adult female member, or the applicant is a widower, unmarried, separated, or transgender.

 

Loan and Property Limits:

• Maximum Housing Loan Eligible: ₹25 lakh
• Maximum House Value: ₹35 lakh
• Maximum Carpet Area: 120 sqm

 

Subsidy details:

• Home loans sanctioned and disbursed after September 1, 2024 qualify for this subsidy.
• This scheme provides a 4.0% annual interest subsidy on the first ₹8 lakh of the home loan for a maximum of 12 years.
• Actual Release: Up to ₹1.80 lakh
• The subsidy's net present value (NPV): ₹1.50 lakh (based on a discounted rate of 8.5%).
• Five years of equal installments of the subsidy will be paid directly into the beneficiary's loan account. if, at the time of subsidy credit, the loan account is still open and more than half of the principal has not been paid back.

 

Essential Steps: Key Conditions for PMAY Urban ISS 

Some major conditions have been stated here so that one can get the application procedure hassle-free:

• Aadhaar Requirement: All beneficiaries and their family members would mandatorily have to possess an Aadhaar card or a linked Aadhaar Virtual ID.
• Self-Undertaking by Beneficiary under ISS
• Integrated Web-Portal: Beneficiaries must register their demand through a unified web-portal.
• Layout Plan Submission: In order to get the subsidy, a layout plan that has been approved in accordance with the regulations of the relevant States and Union Territories must be submitted. However, a layout design might not be required if there is an exemption.
• Geo-tagging of houses to be done after release of 1st installment, in case of purchase of completed house. In the case of construction / under construction house, geo tagging is to be done before release of each installment.
• Single Use of Subsidy: The interest subsidy is only available for a single use for a single property. Subsidies cannot be claimed by the new buyer if the property is sold.
• Loan Transfers: Subsidy takers who transfer the home loan to another financial institution subsequent to taking the subsidy will not be eligible for taking any other subsidy. Subsidies can't be claimed after the balance transfer is done if they are not claimed from the original lender either.

 

Coverage Under PMAY Urban Scheme - A Glance

Benefits of PMAY Urban ISS are available in all urban areas of India:

·  Statutory Towns: All the statutory towns provided in Census 2011, along with newly notified towns in it.

·  Notified Planning Areas: The areas under notified planning areas, development authorities or similar authorities established under the State legislation for urban planning and regulation. An updated list of statutory towns can be accessed through the NHB portal.

·  Coverage under PMAY Urban conceded Cities/Towns and notified planning areas existing under PMAY Urban shall continue to be covered under PMAY Urban 2.0. It may also include new ones with approval through MoHUA.

 

You can find more information at PMAY urban's official website: https://pmay-urban.gov.in/

To read more about how PMAY to expand with 3 crore more affordable homes, visit:  https://www.indiashelter.in/blogs/home-loan-pradhan-mantri-awas-yojana