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Pradhan Mantri Awas Yojana - Urban 2.0 Interest Subsidy Scheme (PMAY-U 2.0 ISS)

Pradhan Mantri Awas Yojana - Urban 2.0 Interest subsidy scheme (PMAY-U 2.0 ISS) is the revamped version of the original PMAY-U CLSS scheme, introduced to continue the mission of providing "Housing for All" in urban areas. This scheme aims to provide Central Assistance to eligible families/beneficiaries through PLIs to purchase or repurchase houses in urban areas.

Advantages of PMAY-U 2.0 ISS

The following are the main features of PMAY-U 2.0 ISS:

Subsidy Benefit

Under PMAY – U 2.0 ISS, borrowers whose home loans have been sanctioned/disbursed on or after 01st September 2024, with sanctioned loan amount up to Rs.25 lakhs can benefit from an interest subsidy of up to Rs.1,80,000/-*.

Extended Loan Tenure

Under this scheme, subsidy benefits are structured around a 12-year loan tenure, beneficiaries may opt for longer loan tenures based on their agreement with the lending institution. However, it's important to note that the interest subsidy applies only to the first ₹8 lakh of the loan and is calculated based on a 12-year tenure. Tenure of the loan should be at least 5 years to be eligible for taking the subsidy.

 

Women Empowerment

Promotes women’s ownership by mandating female co-ownership in property registration. This initiative aims to enhance women's financial security and social status by encouraging them to become homeowners.

Beneficiaries

The beneficiaries from EWS (Economically Weaker Section) categories having annual household income up to 3 lakh, beneficiaries of LIG (Lower Income Group) with ₹ 3 lakh to 6 lakh and MIG (Middle Income Group) beneficiaries with income limit of ₹ 6 lakh to 9 Lakh will be eligible for ISS scheme.

Sustainability Focus

Emphasis on adopting eco-friendly construction methods, promoting green technologies, energy-efficient designs, and utilizing sustainable building materials. This approach aims to not only provide affordable housing but also ensure environmental responsibility and resilience against climate challenges.

Option of Additional Loan

Beneficiaries that need housing loans above and beyond what offered under PMAY-U 2.0 ISS can apply for additional loans.

Launched in 2024, the Pradhan Mantri Awas Yojana - Urban 2.0 (PMAY-U 2.0) is an extension of the original PMAY-U scheme, designed to continue the mission of "Housing for All" in urban areas. This revised scheme focuses on enhancing accessibility, sustainability, and improved affordability for citizens across various income groups. PMAY-U 2.0 is set to be implemented over a period of five years (2024 to 2029).

  • PMAY-U 2.0 aims to enhance housing affordability for EWS, LIG, and MIG segments

  • Maximum Subsidy Limit: ₹1.80 lakh

  • Scheme Duration: Active from 2024 to 2029

  • Applicable for loan sanctioned and disbursed on or after 01.09.2024

  • Applicable for home loans upto ₹25 lakh

  • House value upto ₹35 lakh

What is PMAY-U 2.0 Subsidy?

PMAY-U 2.0 Subsidy is a financial benefit offered under the Pradhan Mantri Awas Yojana - Urban 2.0 to make homeownership more affordable for eligible beneficiaries.

Let's understand this with an example:

Suppose a beneficiary takes a home loan of ₹8 lakh at an original interest rate of 9% for a tenure of 12 years. Under PMAY-U 2.0, they will receive a 4% interest subsidy on the first ₹8 lakh.

Who are Eligible for PMAY-U 2.0 ISS?

The following is the basic eligibility criteria to avail the Pradhan Mantri Awas Yojana-Urban 2.0:

  •  

    House Ownership Condition: The beneficiary family must not own a pucca house in any part of India in their name or in the name of any family member.

     

  •  

    No Prior Assistance: The beneficiary family should not have availed any Central assistance under previous housing schemes or any PMAY benefit earlier.

     

  •  

    Married Couples: In the case of a married couple, only one subsidy can be claimed by either wife or jointly by husband and wife, subject to income eligibility.

     

  •  

     

    Loan Sanction Date: Subsidy is applicable only for home loans sanctioned and disbursed on or after 01.09.2024.

     

List of documents required for PMAY-U 2.0?

  • Updated Aadhar card copies of all the borrower and co-borrowers with their spouse irrespective they are on loan structure or not.

  • Updated Aadhar copies of parents (Mother and Father) main applicant / primary borrower.

  • Updated Aadhar copies of all the borrower / co-borrowers unmarried children's (Birth certificate or school ID is also applicable in case Aadhar is not available).

  • Main borrower's Aadhar number must be linked with an active mobile number (Required for OTP purpose).

  • Signed copy of Acknowledgement of PMAY unified portal in case customer has applied at PMAY unified portal voluntary.

What is a PMAY Calculator?

The Pradhan Mantri Awas Yojana calculator or the PMAY calculator is a simple online tool using which you can calculate your PMAY subsidy amount and the category under which you are eligible for the PM Awas Yojana.

Simply by entering your annual family income, loan tenure, and the loan amount in the PMAY calculator, you can know the PM Awas Yojana subsidy you are eligible to receive within seconds.

Who can Register under the PM Awas Yojana?

Slum Dwellers

People who live in extremely poor residences with no basic amenities such as drinking water, lack of proper infrastructure, and sanitation can apply under this category

Other Three Components

EWS (Economically Weaker Sections), LIGs (Lower Income Groups), and MIGs (Middle-Income Groups) can apply under this category

How to apply for PMAY-U 2.0?

To register under the PMAY-U 2.0, follow the following steps:
 

1

Login details

Log onto the official PMAY-U 2.0 website: PMAY-HFA(Urban)

2

Eligibility Check

Update Pre-requisite Parameters to check Eligibility

3

Personal Details

Enter your Aadhar number and click on ‘Submit’

4

Aadhar verification

The site will verify your Aadhar details and if they are correct, you will be directed to the next page where you will have to furnish information such as your name, income, address, contact number, religion, caste, and the likes

5

Enter Captcha

Once you have entered in all the information, type the Captcha Code in the box provided at the bottom of the page and click ‘Submit’

You can check and edit your details later with the help of your Application and Aadhar number

More Home Loan products for you

Home Loan for government employees

With Tata Capital, you can apply for a home loan for government employees in a few easy steps and get housing finance at competitive interest rates.

Home Loan for self-employed

With Tata Capital, you can apply for a home loan for self employed in a few easy steps and get housing finance at competitive interest rates.

Home Loan for women

With Tata Capital, you can apply for a home loan for women in a few easy steps and get housing finance at competitive interest rates. 

Find the right Loan for you

Affordable Housing Loan

  1. At Tata Capital, we believe that every single person, regardless of their financial background, deserves a home to call their own.

With this vision, Tata Capital Housing Finance offers affordable home loans at competitive interest rates. 

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Home Extension Loan

  1. As the years go by and your family continues to grow, does your house feel smaller?

Tata Capital’s Home Extension Loan is a perfect solution to help you give your family that additional space they deserve.

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Home Loan for Self-Construction

Instead of buying a ready-to-move-in house, you can choose to purchase a piece of land and construct your house on it brick by brick. 

A home loan for self-construction or simply a home construction loan is a special type of home loan given to help borrowers construct their own house on a piece of land or plot.

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Home Loan Top-up

A home loan top-up is a facility offered by lenders under which a borrower can take an additional loan over and above their existing home loan.

The home loan top-up facility is available only for existing home loan borrowers without the need for any additional security or guarantee.

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Home Loan Overdraft

At times, you may need additional funds to tackle your personal or business expenses. 

With Tata Capital’s home loan overdraft facility, you can avail of a home overdraft loan limit of up to Rs. 2 crores. You can withdraw funds from this overdraft housing loan limit as per your needs and then pay it back at your convenience.

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Quick Cash

Quick Cash loan is a unique Pre-Approved personal finance top-up linked to your existing Tata Capital Housing Finance Limited (TCHFL) loans. This loan is only for existing TCHFL Home Loan and Home Equity customers.

Apart from its unique features, it also offers other advantages such as faster processing, and a paperless journey, notwithstanding that all this could be availed in just a few clicks at your convenience any day 24*7.

Quick Cash Quick Cash

Balance Transfer

  1. A home loan balance transfer, or simply a home loan transfer, takes place when you transfer your outstanding home loan amount to a new lender from your existing lender.

With Tata Capital Home Loan Balance Transfer, you can transfer your outstanding home loan balance to affordable interest rates. Our home loan interest rates start from just 8.75% per annum*.

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