What is PMAY–U 2.0?
Pradhan Mantri Awas Yojana-Urban 2.0 (PMAY-U 2.0) is a government initiative aimed at assisting families belonging to EWS, LIG, and MIG segments living in urban areas who don't own a pucca house either in their name or in the name of their family member anywhere in the country. The scheme provides financial support from the government for purchasing or constructing a house.
What is the implementation period of PMAY 2.0?
The scheme will be implemented over a period of 5 years, from 2024 to 2029.
How can States/UTs participate in PMAY-U 2.0?
As per the scheme guidelines, States/UTs can participate in PMAY-U 2.0 after signing an MoA with the Ministry of Housing and Urban Affairs (MoHUA).
What is the definition of EWS, LIG, and MIG for the purpose of the scheme?
For the purpose of the PMAY-U 2.0 scheme, EWS, LIG, and MIG segments are defined basis the annual household income as follows:
a) Economically Weaker Section (EWS) households are defined as households with an annual income up to ₹3 lakhs.
b) Lower-Income Group (LIG) households are defined as households with an annual income from ₹3 lakhs up to ₹6 lakhs.
c) Middle-Income Group (MIG) households are defined as households with an annual income from ₹6 lakhs up to ₹9 lakhs.
What is the coverage of PMAY-U 2.0?
PMAY-U 2.0 covers all statutory towns as per Census 2011, along with towns notified subsequently. It also includes Notified Planning Areas and areas within the jurisdiction of Industrial Development Authorities, Special Area Development Authorities, Urban Development Authorities, or any such Authority under State legislation entrusted with urban planning and regulation functions.>
Will the newly notified towns be included in PMAY-U 2.0?
Yes, towns notified during the implementation period of PMAY-U 2.0 will also be included under the scheme, based on gazette notifications of States/UTs, with approval from the Ministry of Housing and Urban Affairs (MoHUA).
What is the definition of beneficiary family under the scheme? Are dependent parents of the borrowers or spouse included in the definition of “beneficiary family”?
A beneficiary family comprises of a husband, wife, unmarried children, and dependent parents of either the borrower or the spouse.
What is the definition of a pucca house under PMAY-U 2.0?
A 'pucca' house is defined as an all-weather housing unit with a roof and walls made up of sturdy, modern, and durable materials such as burnt bricks, stones packed with cement or lime, cement concrete, timber, Galvanized Iron (GI) sheets, asbestos sheets, machine-made tiles etc.regardless of whether the floor is kutcha.
What should be the composition of a completed pucca house?
A new pucca house purchased/constructed under PMAY-U 2.0 must have at least 2 rooms, a kitchen, a toilet, electricity, and a water connection.
How can a beneficiary apply for the housing under the scheme?
A beneficiary meeting the eligibility criteria under the Interest Subsidy Scheme (ISS) needs to submit an application in the defined format along with details of PLI from which the home loan is or will be taken. The application can be submitted via the Unified Web Portal or by visiting the nearest SMFG Grihashakti branch.
Is woman ownership mandatory in construction cases where the land has already been purchased in the name of male member before implementation of PMAY-U 2.0?
Houses constructed/purchased with Central Assistance under the scheme should be in the name of the female head of the household or jointly in the name of the male head of the household and his wife. Only in cases where there is no adult female member in the family can the House be registered in the name of the male member.
In cases where the applicant is a widower, unmarried, separated individual, or transgender, the house will be made in the individual’s name. In case of beneficiary(s) death, the legal heir of the beneficiary will get the benefit under the scheme.
How shall the beneficiary benefit from receiving the subsidy under the ISS vertical?
The subsidy under Interest Subsidy Scheme will be directly credited into the home loan account of the beneficiary. This, reduces the principal outstanding, resulting in a reduced EMI/loan tenure.
What documents are required to apply for the Interest Subsidy Scheme?
The documents required for availing ISS benefits includes proof of identity (Aadhaar card and PAN card), proof of address, income certificate, any other documents as specified by the MoHUA or PLIs.
How do I know if I am eligible for ISS?
A beneficiary can determine their eligibility under ISS through the Unified Web Portal based on the following criteria:
- Undertaking on not owning a house anywhere in India except for the one being purchased/constructed
- Declaration of not having availed the benefits under any housing schemes in the last 20 years
- Household income not exceeding ₹9 lakhs per annum
- Home loan amount not exceeding ₹25 lakhs
- House value not exceeding ₹35 lakhs
- Carpet area of the house not exceeding 120sqm
How will the interest subsidy be released to the beneficiary?
The subsidy will be released in 5 yearly instalments directly in the home loan accounts, provided the loan is standard and active at the time of release and more than 50% of the principal is outstanding.
Can a beneficiary take a loan for less than 12 years and still be eligible for the subsidy?
Yes, but the tenure of the loan should be at least 5 years to be eligible for the subsidy.
How can I check my application status/subsidy release after applying for the benefit under the ISS vertical?
The applicant can check their application status (registration, due-diligence, approval of claim and subsidy release date, amount, etc.) using their unique user code/Application ID/registered mobile number by visiting the PMAY-U 2.0 Unified Web Portal or through its mobile application.
Under what circumstances can a subsidy be denied to an active loan account of the beneficiary?
The subsidy shall not be released if the beneficiary’s loan account is classified as an NPA or the principal loan amount outstanding is less than 50%.
Is the subsidy amount fixed or is it dependent on loan amount?
The subsidy amount is not fixed; it depends on the loan amount. However, the maximum interest subsidy limit allowed is ₹ 1.80 lakh, applicable only for loan amount of ₹8 lakh given for a tenure of 12 years. If the loan amount is below ₹8 lakh or the tenure is shorter than 12 years, the subsidy amount shall be reduced and calculated accordingly. A beneficiary may take loan above ₹8 lakh, up to a maximum of ₹25 lakh, but the subsidy will not be granted for loan amounts above ₹8 lakh.
Can a beneficiary get a loan for purchasing land to build a house and claim subsidy under ISS?
No, the subsidy will not be provided for purchasing land.
If a beneficiary from the EWS/LIG/MIG is willing to construct house on their land, is he/she eligible for subsidy under ISS?
Yes, but the carpet area of the house should be less than 120 sqm as per the scheme guidelines.
Will a beneficiary from the informal sector be eligible to get the subsidy under ISS?
Yes, informal workers such as street vendors, small shop owners, service providers, drivers, watchmen etc., can avail loan subsidy if they meet the eligibility criteria.
Will the subsidy under ISS be applicable for repair work or incremental construction activity, such as addition of kitchen orbathroom, on an existing house?
What is the cutoff date for eligibility of interest subsidy under the ISS vertical of PMAY 2.0?
Subsidy will be provided on home loans sanctioned and disbursed on or after 01.09.2024 to eligible beneficiaries of EWS,LIG, and MIG for purchase/ re-purchase/construction of houses.
How much subsidy is permissible under this vertical?
A maximum subsidy of ₹1.80 lakh will be provided to eligible beneficiaries under ISS.
Who is eligible to apply for the benefits under the ISS vertical?
Beneficiaries from the EWS (Economically Weaker Section) category having annual household income up to ₹ 3 lakhs beneficiaries of LIG (Lower Income Group) with income between ₹ 3 lakhs and 6 lakhs, and MIG (Middle Income Group) beneficiaries with income limit of ₹ 6 lakhs to 9 lakhs will be eligible for the ISS scheme.
Who are the Primary Lending Institutions (PLIs)?
Financial Institutions that extend individual home loans to borrowers and have signed an MoU with any one of the CNAs are termed as PLIs for the purpose of the scheme.
Can a customer reapply on the Unified Web Portal if their earlier application was rejected?
Yes, customers can edit their application.
In case of resale or transfer of properties before the completion of lock-in period, should the credited subsidies be refunded by the beneficiaries?
If a borrower closes their loans early or through an insurance settlement, should the credited subsidies be refunded by the beneficiary?
No, but the subsequent subsidy will be cancelled.
What happens if I have availed benefits from a housing scheme in the past?
Applicants who have availed benefits from any housing scheme of the Central Govt., State Govt., or Local Self Govt. in the last 20 years will not be eligible for PMAY-U 2.0.
Which vertical does SMFG Grihashakti cater to for eligible beneficiaries under the PMAY-U 2.0 scheme?
SMFG Grihashakti caters exclusively to the PMAY-U 2.0 Interest Subsidy Scheme for eligible beneficiaries.
Disclaimer: *Please note that loans are disbursed at the sole discretion of SMFG Grihashakti. Final approval, loan terms, and disbursal process will be subject to SMFG Grihashakti’s policy at the time of loan application. If you are an existing customer and wish to foreclose your loan, please note that foreclosure terms and charges will be applicable as per our policy at the time of loan foreclosure.