A national workshop was held today, November 14, 2024, in New Delhi, organized by the Ministry of Housing and Urban Affairs (MoHUA) in collaboration with the National Housing Bank (NHB). The focus of the workshop was on the Pradhan Mantri Awas Yojana – Urban 2.0 Interest Subsidy Scheme (ISS) vertical and the signing of Memorandums of Understanding (MoUs). The event was honored by the presence of Shri Manohar Lal, the Hon’ble Minister for Housing and Urban Affairs.
The workshop saw the participation of over 250 representatives from various banks, Housing Finance Companies (HFCs), Primary Lending Institutions (PLIs), and other financial institutions.
The Hon’ble Minister also elaborated on the vision of the Central Government under the leadership of the Hon’ble Prime Minister, highlighting the key features of PMAY-U 2.0, particularly the ISS vertical. He called upon all financial institutions (Banks & HFCs) to actively participate in this transformative journey of providing ‘housing for all,’ which will be a significant milestone for DEVELOPED INDIA by the year 2047.
Prior to this, the inaugural address was delivered by Shri Srinivas Katikithala, Secretary, MoHUA. In his address, the Secretary shared the exponential progress of the PMAY-U scheme and its extensive coverage, making it one of the world’s largest affordable housing programs.
The Secretary appreciated the banking fraternity’s role in the success of the CLSS vertical. He further discussed the affordable housing ecosystem, focusing on policies that ensure a permanent house for urban residents, thereby enhancing their quality of life. He encouraged participants to propose futuristic ideas and thought-provoking insights for urban development.
Dr. MP Tangirala, Additional Secretary, Department of Financial Services, Ministry of Finance, Shri Kuldip Narayan, Joint Secretary & Mission Director, Housing for All, Shri Sanjay Shukla, MD, National Housing Bank, and senior officials from the Ministry also attended the workshop. Key stakeholders and representatives from various CNAs, PLIs, Banks, and States/UTs were also present.
The workshop provided a platform for participants from various sectors to come together, deliberate, and strategize on the implementation of PMAY-U 2.0. They discussed its modalities and identified ways to strengthen the affordable housing initiative.
The ‘PMAY-U 2.0 – Housing for All’ Scheme was launched in September 2024 by Hon’ble Prime Minister Shri Narendra Modi. Under this scheme, financial assistance will be provided to poor and middle-class families to construct or purchase a pucca house in urban areas. The scheme emphasizes empowering urban poor and middle-class families by providing them with secure housing, allowing them to focus on improving their lives. It also promotes sustainable and inclusive urban development.
PMAY-U 2.0 will be implemented through four verticals, with beneficiaries having the flexibility to choose one vertical based on their eligibility criteria. The Interest Subsidy Scheme (ISS) is one of these verticals, under which interest subsidies will be provided to EWS (Economically Weaker Section), LIG (Low-Income Group), and MIG (Middle-Income Group) beneficiaries on home loans. The ISS vertical of PMAY-U 2.0 is being implemented by designated Central Nodal Agencies (CNAs) such as NHB, HUDCO, and SBI, which will channel the subsidy to beneficiary accounts through identified Primary Lending Institutions (PLIs).
Shri Kuldip Narayan, Joint Secretary & Mission Director, Housing for All, presented a comprehensive overview of PMAY-U 2.0, outlining its criteria, modalities, and implementation process. His detailed presentation helped participants understand the scheme, its verticals, and how it will be implemented to ensure pucca houses for 1 crore citizens of urban India.
JS&MD, HFA also highlighted the achievements of PMAY-U, particularly the Credit Linked Subsidy Scheme (CLSS) vertical, which has benefited about 25 lakh beneficiaries from different segments. The key focus was on the ISS vertical of PMAY-U 2.0, which provides subsidies on home loans to EWS, LIG, and MIG families. Eligible beneficiaries will receive a subsidy of ₹1.80 lakh.
Participants of the PMAY-U 2.0 workshop were also introduced to the unified web portal designed and developed by MoHUA to effectively execute the scheme. The portal simplifies the application process, allows beneficiaries to check the status of their applications, facilitates data exchange among stakeholders, and ensures faster due diligence, approval, and release of subsidies. The web portal is accessible to all stakeholders and will help in monitoring and evaluating the PMAY-U 2.0 scheme.
Prospective beneficiaries can apply for PMAY-U 2.0 at: .
This was followed by an interactive session with the participants, where JS&MD, HFA answered queries related to the web portal and took suggestions for the effective implementation of PMAY-U 2.0.
An important milestone was achieved at today’s workshop on PMAY-U 2.0 with the signing of MoUs between NHB and 147 different PLIs for the implementation of the Interest Subsidy Scheme.
During the National Workshop on Pradhan Mantri Awas Yojana (Urban) 2.0 – Interest Subsidy Scheme (ISS) and Signing of MoUs at New Delhi, the Unified Web Portal- ISS was introduced by NIC and MoHUA. @DFS_India @MoHUA_India pic.twitter.com/D9Gya1bXJg
— National Housing Bank (@NhbIndia) November 14, 2024
Additional Insights on the PMAY-U 2.0 Workshop
The Importance of Affordable Housing
Affordable housing is a critical component of urban development, ensuring that all citizens have access to safe and secure living conditions. The PMAY-U 2.0 scheme aims to address the housing needs of urban poor and middle-class families, providing them with the financial support necessary to construct or purchase a pucca house. This initiative not only improves the quality of life for beneficiaries but also contributes to the overall economic development of urban areas.
Key Features of PMAY-U 2.0
Interest Subsidy Scheme (ISS): The ISS vertical provides interest subsidies on home loans to EWS, LIG, and MIG beneficiaries, making homeownership more affordable. This subsidy reduces the financial burden on families, enabling them to invest in their future.
Flexibility in Vertical Selection: Beneficiaries have the flexibility to choose from four verticals based on their eligibility criteria, ensuring that the scheme caters to diverse housing needs.
Unified Web Portal: The introduction of a unified web portal simplifies the application process, making it more accessible and user-friendly. This portal allows beneficiaries to track their application status, ensuring transparency and efficiency in the implementation of the scheme.
The Role of Financial Institutions
Financial institutions play a crucial role in the success of the PMAY-U 2.0 scheme. By partnering with the government, banks, Housing Finance Companies (HFCs), and Primary Lending Institutions (PLIs) help channel subsidies to beneficiaries, ensuring that financial assistance reaches those in need. The collaboration between public and private sectors enhances the scheme’s reach and effectiveness, promoting financial inclusion and stability.
Impact on Urban Development
The PMAY-U 2.0 scheme is expected to have a significant impact on urban development. By providing affordable housing options, the scheme encourages the growth of sustainable and inclusive urban communities. It also stimulates economic activity by creating jobs in the construction and housing sectors, contributing to the overall development of urban areas.
How to Apply for the Interest Subsidy Scheme: A Step-by-Step Guide
The Interest Subsidy Scheme (ISS) under the Pradhan Mantri Awas Yojana – Urban 2.0 (PMAY-U 2.0) is designed to make homeownership more affordable for economically weaker sections (EWS), low-income groups (LIG), and middle-income groups (MIG). This scheme provides interest subsidies on home loans, reducing the financial burden on families and enabling them to invest in their future. Here’s a comprehensive guide on how to apply for the Interest Subsidy Scheme.
Step 1: Check Eligibility
Before applying for the Interest Subsidy Scheme, it’s essential to determine if you meet the eligibility criteria. The scheme is available to:
Economically Weaker Section (EWS): Households with an annual income up to ₹3 lakhs.
Low-Income Group (LIG): Households with an annual income between ₹3 lakhs and ₹6 lakhs.
Middle-Income Group (MIG-I): Households with an annual income between ₹6 lakhs and ₹12 lakhs.
Middle-Income Group (MIG-II): Households with an annual income between ₹12 lakhs and ₹18 lakhs.
Additionally, the applicant should not own a pucca house in their name or in the name of any family member across India.
Step 2: Gather Required Documents
To apply for the Interest Subsidy Scheme, you will need to gather the following documents:
Identity Proof: Aadhaar card, PAN card, Voter ID, or Passport.
Address Proof: Utility bills, rental agreement, or any government-issued document with your address.
Income Proof: Salary slips, income tax returns, or bank statements.
Property Documents: Sale agreement, property tax receipts, or any other relevant documents.
Loan Application Form: Filled and signed loan application form from the Primary Lending Institution (PLI).
Step 3: Choose a Primary Lending Institution (PLI)
The Interest Subsidy Scheme is implemented through designated Central Nodal Agencies (CNAs) such as NHB, HUDCO, and SBI, which channel the subsidy to beneficiary accounts through identified Primary Lending Institutions (PLIs). You can choose a PLI from the list of participating banks and Housing Finance Companies (HFCs).
Step 4: Apply for a Home Loan
Visit the chosen PLI and apply for a home loan under the Interest Subsidy Scheme. Submit the required documents along with the filled loan application form. The PLI will process your application and verify your eligibility for the scheme.
Step 5: Loan Sanction and Subsidy Claim
Once your home loan application is approved, the PLI will sanction the loan amount. The PLI will then submit the subsidy claim to the designated CNA. The CNA will process the claim and release the subsidy amount to the PLI.
Step 6: Subsidy Credit to Loan Account
The subsidy amount will be credited to your loan account, reducing the principal loan amount. This will result in lower Equated Monthly Installments (EMIs) and make your home loan more affordable.
Step 7: Track Your Application
You can track the status of your subsidy application through the unified web portal designed and developed by the Ministry of Housing and Urban Affairs (MoHUA). The portal simplifies the process for application, allows beneficiaries to know the status of their application, and ensures faster due diligence, approval, and release of subsidy.
Additional Tips
Stay Informed: Keep yourself updated with the latest information about the Interest Subsidy Scheme by visiting the official PMAY-U 2.0 website and the websites of participating PLIs.
Seek Assistance: If you face any difficulties during the application process, seek assistance from the customer service representatives of the PLI or visit the nearest branch for help.
Maintain Documentation: Ensure that all your documents are up-to-date and accurately reflect your financial status and property details.
Conclusion
The Interest Subsidy Scheme under PMAY-U 2.0 is a significant initiative to make homeownership more accessible and affordable for EWS, LIG, and MIG families. By following this step-by-step guide, you can successfully apply for the scheme and benefit from the interest subsidy on your home loan. This financial support will help you achieve your dream of owning a pucca house and improve your quality of life.
For more information and to apply for the Interest Subsidy Scheme, visit the official
