Understanding PMAY 2 and How It Differs from PMAY 1 ?

Owning a home is a dream for everybody. Many Indian citizens, especially those living in urban areas, are faced with an uphill battle in obtaining their homeownership dream due to the high property rates. To ease housing burden, the Government of India introduced the Pradhan Mantri Awas Yojana (PMAY). In the year 2024, the government introduces PMAY-Urban 2.0. With the help of this new program, more urban dwellers will be able to purchase or construct their own homes.

The Pradhan Mantri Awas Yojana (PMAY) is a flagship housing initiative of the Government of India, launched in June, 2015 to "Housing for all". Its objective is to supply affordable housing to the urban poor, low-income groups (LIG), middle-income groups (MIG), and economically disadvantaged sections (EWS).

With a focus on urban housing shortages, PMAY is striving to expand homeownership opportunities through government financial assistance, support for new construction, and slum renovation to create better living environments.

The next step of Pradhan Mantri Awas Yojana, PMAY Urban 2.0 will emphasize the urban side of housing, technological innovation, inclusiveness, and sustainability. PMAY-Urban 2.0, which was recently authorized by the Union Cabinet, intends to give financial aid to one crore urban poor and urban middle-income households over the course of the next five years.

States, Union Territories (UTs) and Primary Lending Institutions (PLIs) will provide this assistance, enabling eligible beneficiaries to construct, own or rent affordable housing in urban areas. PMAY-Urban 2.0 assures the Government’s commitment to making affordable housing accessible to all urban residents.

Green and Eco-Friendly Construction

Homes constructed under this scheme will incorporate eco-friendly materials and techniques to reduce their impact on the environment.

Modern Building Technologies

MODI encourages modern building methods, including prefabricated or modular homes, which help to build faster and are more durable.

Wider Inclusion

In contrast to the previous version, PMAY-Urban 2.0 has a focus on different groups such as, widows, unmarried and separated women and transgender individuals.

To avail the benefits of the PMAY-Urban 2.0 scheme, applicants must fulfill specific eligibility criteria outlined by the government, which include income limits, family structure, ownership status of property, and adherence to location-specific guidelines under various beneficiary categories such as EWS, LIG, and MIG.

Income Criteria

In terms of household income, beneficiaries of the scheme are put into the following categories:

• Economically Weaker Section (EWS): Up to ₹3 lakh

• Low-Income Group (LIG): ₹3 lakhs-₹6 lakhs

• Middle-Income Group I (MIG I): ₹6 lakhs-₹9 lakhs

Location of Property

The property for which the benefits are claimed must be situated within a statutory town listed in the Census 2011, or in towns that have been notified subsequently by the government.

Interest Subsidy (CLSS)

PMAY-Urban 2.0 offers interest subsidies under the Credit Linked Subsidy Scheme (CLSS), with rates and benefits varying by income group. This subsidy helps reduce the loan burden, making homeownership more affordable for eligible urban families.

Several segments of society are set to benefit from the PMAY-Urban 2.0 scheme. The program is designed to offer inclusive support to groups that often face barriers to affordable housing. Below are the key categories of beneficiaries who will gain the most from this initiative:

Women, Transgender Individuals, and Other Vulnerable Groups

PMAY-Urban 2.0 emphasizes social inclusion by prioritizing housing allocation for vulnerable and marginalized sections of society. These include:

• Transgender individuals

• Transgender individuals

• Unmarried and separated individuals

Other socially and economically disadvantaged groups

By giving these communities preferential access to affordable housing loan options, the scheme promotes equality and ensures inclusive growth in urban development.

Economically Weaker Sections (EWS)

The EWS category includes people or families earning up to ₹3 lakhs per year. PMAY-Urban 2.0 offers this group focused assistance by:

• Construction of new affordable homes

• Upgrading of existing slums for better living conditions

This ensures that even the most financially constrained families can live in dignified and safe environments.

Low-Income Groups (LIG)

Households with an annual income between ₹3 lakhs and ₹6 lakhs are classified as LIG. This group benefits from:

• Interest subsidies on home loans

• Access to newly constructed affordable housing

With reduced loan burdens, families in this segment can move closer to owning a home of their own.

Middle-Income Groups (MIG)

Middle-income households with earnings between ₹6 lakhs and ₹9 lakhs annually also stand to benefit from PMAY-Urban 2.0. The scheme offers:

• Interest subsidies under the Credit Linked Subsidy Scheme (CLSS

This financial support enables MIG families to fulfill their aspiration of homeownership in urban areas without excessive financial strain.

With the Pradhan Mantri Awas Yojana (PMAY)-Urban 2.0 scheme, affordable housing can now become a reality for every citizen of this country. With its unique timeline and focus on inclusivity, sustainability and accessibility, the government hopes to reach more of urban society; especially the economically weaker sections (EWS), low-income groups (LIG), and middle-income groups (MIG) to allow the homeownership dream to come true.

If you would like additional information or you need assistance regarding home loans under PMAY-Urban 2.0. Feel free to visit the nearest branch of Niwas.