• Home loan has become cheaper!
• Modi government’s ‘bumper’ gift for home buyers;
• How to avail 4% Interest Subsidy

Pradhan Mantri Awas Yojana Urban 2.0: Everyone dreams of owning a house, but achieving it is not easy. Most of the people can achieve this dream by investing their hard earned money of their life. However, in the center Narendra Modi The government is not only helping the economically weaker sections realize this dream but also benefiting the middle class individuals. Let’s understand how.

Government decision in 2024

In fact, after coming to power in 2024, Pradhan Mantri Awas Yojana-Urban by Narendra Modi Govt (PMAY-U) 2.0 approved. Under this scheme, families belonging to Economically Weaker Sections (EWS), Low Income Group (LIG) and Middle Income Group (MIG) are the main focus. These individuals will receive a significant interest subsidy to purchase or build their first home.

How much subsidy on how much loan

Government subsidizes affordable home loans taken for home purchase under Interest Subsidy Scheme (ISS) of PMAY-U 2.0. To be eligible for the subsidy, the house value must be up to ₹35 lakh and the loan amount must be up to ₹25 lakh. A key feature of this scheme is that if the loan tenure is up to 12 years, 4% interest subsidy will be given on the first ₹8 lakh loan. Simply put, this will reduce the EMI burden, making it easier for families to buy a home. This facility is specifically for families with an annual income of up to ₹9 lakh and who do not have a permanent home anywhere in the country.

Total grant ₹1.80 lakh

The total grant to the beneficiary will be ₹1.80 lakh, which the government will directly transfer to their bank account in five installments. Beneficiaries can also check their subsidy account details through website, OTP or smart card. The government has allocated a total assistance of ₹2.30 lakh crore for the scheme, of which interest subsidy is a major component. The government estimates that 1 crore new urban households will benefit from the scheme in the next five years.

Who will benefit?

Middle class, economically weaker sections and low income groups with annual income below ₹9 lakh are eligible for this scheme. Moreover, this scheme is eligible only if the applicant does not have a home anywhere in the country.