More than 50 lakhs new houses have been built in the last 5 years in India. Why, yes! Thanks to the PMAY-U (Pradhan Mantri Awas Yojana), one of the many initiatives from the Ministry of Housing and Urban Affairs, India. To know more about this Ministry, read on.

What is the MoHUA?

Constituted on 13th May of 1952, the Ministry was initially known as Ministry of Works, Housing and Supply. It is an authority of the Indian Government that formulates policies and supports programmes and sponsors associated with housing and urban development. It coordinates, monitors, and backs urban livelihood missions, urban housing programs, and overall urban development through Central Sector Schemes and Centrally Sponsored Schemes.

Some of the key programmes from the Ministry of housing affairsinclude the following:

1. Mitigate poverty amongst the urban poor population

The MoHUA strives to reduce poverty amidst the country’s urban poor communities. To this end, it offers the Deen Dayal Upadhyaya Antyodaya Yojana-National Urban Livelihood Mission (DAY-NULM). This scheme motivates the urban poor to form their grassroots-level institutions and creates employment opportunities through skill-development programmes.

DAY-NULM also offers easy access to credit to help such individuals set up their businesses and provides them with shelter and essential services.

2. Access to basic services to households

The Ministry also aims to provide essential services to neglected households and build facilities for disadvantaged cities. It has created the AMRUT (Atal Mission for Rejuvenation and Urban Transformation) programme to develop infrastructure that ensures robust water supply, sewage, and stormwater drainage systems, along with urban transport and green parks.

3. Urban transport development

The MoHUA’s Urban Transport Wing coordinates and approves urban transport projects and finances metro rail projects. It also encourages new-age financing mechanisms in the transportation sector.

Additional Read: Difference between PMAY Gramin and PMAY Urban

4. Urban development in the North-Eastern Region (NER)

The North Eastern Region Urban Development Programme (NERUDP) encourages the development of priority urban services in the capital cities of 5 North Eastern states, including Tripura, Mizoram, Sikkim, and Nagaland. The scheme aims to build proper infrastructure for solid-waste management, water supply, and sanitation and sewerage systems.

5. Affordable housing

The PMAY-U scheme, India’s flagship housing project, offers home loan at subsidized or reduced rates. Launched by the MoHUA, this initiative aims to provide affordable housing for all by 2022.

However, to avail of this scheme, you must fulfil its home loan eligibilitycriteria and belong to any of the following groups.

  • EWS (Economically Weaker Section) with an annual income of Rs. 3 lakhs or less
  • LIG (Low Income Group) with an annual income of Rs. 3-6 lakhs
  • MIG 1 (Medium Income Group) with an annual income of Rs. 6-12 lakhs
  • MIG 2 with an annual income of Rs. 12-18 lakhs

Additional Read: How to Complete your Dream of Owning a House Using PMAY

Over to you

If you want to avail of housing finance under PMAY, turn to Tata Capital. Get flexible repayment tenures, structured EMI plans, and easy eligibility. We provide attractive home loan interest rates starting at just 6.90%. To explore our loan offerings, click here.

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