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Objective

• Pradhan Mantri Awas Yojana - Urban 2.0 (PMAY-U 2.0) - "Housing for All" has been launched to provide assistance to 1 crore eligible urban families, thus ensuring that eligible citizens of urban India can own a house and lead a better quality of life
• As per scheme, the Housing Loan upto Rs. 25 Lakhs, for property value upto Rs. 35 Lakhs, sanctioned to eligible customers, shall be covered under Interest Subsidy Scheme (ISS) w.e.f. 01.09.2024

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Mission & Duration

• The scheme will be implemented for 5 years from 01.09.2024 to provide Central Assistance to all eligible beneficiaries / households through Primary Lending Institutions (PLIs i.e. Banks/FIs/HFCs) to construct or purchase a house at an affordable cost
• The Interest Subsidy Scheme shall be applicable for all Housing Loans sanctioned from 01.09.2024 to the borrowers who confirm to the eligibility norms

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Coverage

• All Statutory Towns as per Census 2011 and towns notified subsequently and areas falling within the boundary of Notified Planning Areas, Notified Planning / Development area under the jurisdiction of Industrial Development Authority / Special Area Development Authority / Urban Development Authority or any such Authority under State legislation which is entrusted with the functions of urban planning and regulations shall be included for the coverage under the Scheme
• The Cities / Towns and areas where PMAY-U is being implemented will continue to be covered under PMAY-U 2.0
• Properties situated in Rural Areas are not eligible under the scheme

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Purpose

• For sanction of Housing Loans to eligible beneficiaries of EWS / LIG and MIG category for purchase / construction of houses

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Beneficiary

• Individual/s from Economically weaker sections (EWS) having annual household income up to Rs. 3.00 Lakhs
• Individual/s from Low Income Group (LIG) having annual household income above Rs. 3.00 Lakhs and upto Rs. 6.00 Lakhs
• Individual/s from Middle Income Group (MIG) having annual household income above Rs. 6.00 Lakhs and upto Rs. 9.00 Lakhs

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Eligibility

• A beneficiary family will comprise of husband, wife, unmarried sons and / or unmarried daughters
• Families belonging to EWS/LIG/MIG segments, living in urban areas, should not own a pucca house (an all -weather dwelling unit) either in his / her name or in the name of any member of his / her family in any part of India
• The houses constructed / acquired / purchased with Central Assistance under the Scheme should be in the name of the female head of the household or in the joint name of the male head of the household and his wife and only in cases when there is no adult female member in the family, the house can be in the name of male member of the household. In cases where the applicant is a widower, unmarried, separated person, or transgender, the house will be made in the individual's name. In case of death of beneficiary(s), the legal heir of the beneficiary will get the benefit under the scheme
• To enable the applicant to avail benefits of PMAY-U 2.0, the inclusion of name of female member of the family in registered title deed / sale deed of the house acquired / purchased during the Mission period shall also be allowed, if otherwise they comply with the eligibility norms
• It would also be ensured that if a pucca house has been provided to the parents of any eligible beneficiary under the previous housing schemes then, he / she will be considered only after other eligible families / beneficiaries whose parents have not availed any benefit under the previous housing schemes are included in the list of beneficiaries. Branch to make the borrower aware of this condition.

Exclusion:

• The subsidy under the scheme will be provided only once for a property. If it is sold to someone else, the purchaser can't take benefit of Interest Subsidy Scheme (ISS) on this property.
• If two or more family members take combined or separate loan on same property, they will be treated as same family for calculation of family income and benefit
• Only loan up to Rs.25 lakh with the house value up to Rs.35 lakh will be eligible for subsidy under this vertical. If the family income or property value as assessed by Bank for sanction of loan is higher than eligibility limit, loan will not be eligible for subsidy
• If Borrower or family member have availed benefits under any other housing Scheme of the Government of India or State Government in last 20 years, the borrower shall not be eligible under this scheme
• In case of any false declaration on income level by a beneficiary who has already availed the scheme benefit, he / she would be liable for legal proceedings under applicable laws

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Self-Attested Certificate / Affidavit

• For identification as an EWS / LIG / MIG beneficiary under the Scheme, an individual loan applicant will submit self-certificate / affidavit as proof of household income

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Beneficiary Family

• A beneficiary family will comprise of husband, wife, unmarried sons and/or unmarried daughters

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Age Limit

• Minimum Entry Age: 18 Years
• Maximum Entry Age: 60 Years
• Exit Age: 70 Years (based on Youngest Earning Member)

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Preferential Beneficiaries

• Preference under the Scheme will be given to Widows, Single Women, Persons with Disabilities, Senior Citizens, Transgenders, persons belonging to Scheduled Castes/ Scheduled Tribes, Minorities, and other weaker and vulnerable sections of the society
• Special focus will be given to Safai Karmi, Street Vendors identified under PMSVANidhi Scheme and different artisans under Pradhan Mantri-Vishwakarma Scheme, Anganwadi workers, building and other construction workers, residents of slums/chawls and other groups identified during operation of PMAY-U 2.0

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Identification Documents

• Bank shall link beneficiary identification to Aadhaar / Aadhaar Virtual ID to avoid duplication

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Maximum Loan Amount & Total Value of House

• Housing Loan: Rs. 25 Lakhs

(As Loans upto Rs. 25 Lakhs only shall be covered under Interest Subsidy Scheme vertical of PMAY 2.0)

• Maximum Value of House Property: Rs. 35 Lakhs

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Interest Rates

RLLR: 8.85% at Present.

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Margin

• 10% (As per RBI LTV Norms)

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Take Home Pay Norms

• The quantum should be fixed considering the age and repayment capacity of the applicant / co- applicant
• EMI should not exceed 50% of the gross monthly income of the applicant(s)
• For Income, Salary Slip for the past 6 Months and in case of Self Employed, ITR for the past 2 Years to be obtained and assessment to be done on the basis of average income

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Repayment Period

• Loan should be repaid within a maximum period of 30 years including the holiday period from the date of disbursement of first installment of loan or completion of construction whichever is earlier

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Moratorium / Holiday Period

• For Ready House / Flat: No Holiday Period

However, if it requires any minor repair / finishing / furnishing / paint etc. then maximum 3 months can be allowed

• For Self-Construction of House: Maximum 18 Months
• For high rise multistory buildings and apartments:

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Processing and other Charges

• For Loan amount upto Rs. 8 Lakhs: Processing Charges shall be Nil as a lump sum processing charges of Rs. 4000/- shall be provided under ISS scheme to the Bank
• For Loan amount exceeding Rs. 8 Lakhs: Processing Charges shall be recovered at 0.50% plus GST on the Loan Amount above Rs. 8 Lakhs and upto Rs. 25 Lakhs portion.
• Documentation Charges also shall be applicable for Loan amount exceeding Rs. 8 Lakhs
• For staff no charges

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Security

• Immovable Property to be financed must be mortgaged only with our Bank
• Registered Memorandum of deposit of Title Deed has to be done as advised by Law Department in the States wherever applicable
• EC post memorandum to be obtained

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Balance Transfer Case of Non Eligibility (Take Over)

• In case a borrower has taken a housing loan from one Bank / FI and later switches to another Bank / FI for balance transfer, such beneficiary will not be eligible to claim the benefit of interest subsidy again
• If a person has not claimed interest subsidy from first Bank / FI, he / she shall not be eligible after balance transfer

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Interest Subsidy

• A maximum interest subsidy of Rs. 1.80 lakh shall be provided to eligible beneficiaries having a loan tenure of more than five years
• Households having income up to Rs. 9 lakh, loan value up to Rs. 25 lakh for property value up to Rs. 35 lakh would be eligible for a subsidy at 4.0 % on first Rs. 8 lakh for a tenure up to 12 years
• The carpet area of houses under this component shall be up to 120 sqm
• Subsidy to the beneficiaries will be released in 5 equal yearly instalments

Broad features and eligibility criteria are as under:

(Rs. in lakhs)

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Subsidy Management

• For availing the benefit under Interest Subsidy Scheme (ISS), eligible beneficiaries will be required to register their demand through unified PMAY 2.0 web-portal
• Applicant will be allowed to select 5 Banks while applying
• The application shall be tagged to the respective Branch of the Bank based on the property location
• Respective Branch has to select the application as a lead for Housing Loan under Subsidy Scheme
• Branch to contact the applicant and do the needful in terms of sanction of Housing Loan as hitherto including all necessary due diligence
• Once Loan is sanctioned, Branch has to update the same in the PMAY 2.0 portal under their login
• Once, sanction is marked, the lead will be deleted from other 4 Banks which were selected by applicant initially
• In view of the same, the Branch to ensure that they check their login on regular basis and select the leads and convert them into business
• The Loan shall be sanctioned strictly as per eligibility norms and Subsequently, the application will be forwarded to the concerned Bank Branch for further necessary action as per his / her eligibility criteria
• Based on the loan disbursed by a PLI to beneficiaries, the Ministry shall release subsidy through single click monthly through CNA to Bank using unified web-portal
• Beneficiary would be intimated by Short Message Service (SMS) on registered mobile number about amount of subsidy credit, bearing beneficiary ID details
• The subsidy will be released in 5 yearly instalments through DBT in loan accounts of beneficiary provided loan is active at the time of release of subsidy and more than 50% principal is outstanding
• Subsidy will be credited by the Bank to the borrower's account upfront by deducting it from the principal loan amount of the borrower
• The borrower will pay EMI as per lending rates on the remainder of the principal loan amount

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Application Process

• For availing the benefit under ISS vertical, eligible beneficiaries will be required to register their demand through unified web-portal at https://pmay-urban.gov.in
• Subsequently, the application will be forwarded to the concerned Bank Branch for further necessary action as per his / her eligibility criteria

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Scheme Guidelines

Click here

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FAQ PMAY 2.0

Click here

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User Manual for Subsidy Application by borrower

Click here

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List of Urban Development Authority

Click here

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List of Urban Local Bodies

Click here