Pradhan Mantri Awas Yojana-Urban 2.0 (PMAY-U 2.0) is a flagship housing scheme launched by the Government of India to provide affordable, all-weather pucca houses to 1 crore eligible urban poor and middle-class families over five years starting from September 1, 2024. It is an upgraded version of the original PMAY-U scheme, aligning with India’s vision of "Housing for All" by 2047.
 
Key Features of PMAY-U 2.0

• Implementation Period: 5 years from September 1, 2024.
• Objective: To enable eligible urban households to construct, purchase, or rent houses at affordable costs.
• Financial Assistance: Up to ₹2.50 lakh assistance per unit with a total investment of ₹10 lakh crore, shared between the central government, states/UTs, and primary lending institutions (PLIs).
• Target Groups: Economically Weaker Sections (EWS), Low Income Groups (LIG), and Middle Income Groups (MIG). Special focus is on vulnerable sections like widows, single women, persons with disabilities, senior citizens, transgenders, Scheduled Castes/Scheduled Tribes, minorities, Safai Karmi, street vendors, artisans, Anganwadi workers, construction workers, slum/chawl residents, and others.

• Income Criteria:

1. EWS: Up to ₹3 lakh annual household income.
2. LIG: ₹3 lakh to ₹6 lakh.
3. MIG: ₹6 lakh to ₹9 lakh.

• Interest Subsidy Scheme (ISS): Offers 4% interest subsidy on housing loans up to ₹25 lakh (first ₹8 lakh considered for subsidy), with a maximum subsidy amount of ₹1.8 lakh spread over 12 years.
• House Value and Size Limits: Maximum house value up to ₹35 lakh and carpet area up to 120 sqm.

Four Vertical Components for Implementation:

1. Beneficiary Led Construction (BLC): Assistance to EWS families to construct/strengthen houses on their own.
2. Affordable Housing in Partnership (AHP): Collaboration with private/public agencies to promote affordable housing projects, reserving at least 25% units for EWS groups.
3. Affordable Rental Housing (ARH): For urban migrants and low-income groups, through repurposing vacant government houses or constructing new rental units.
4. Interest Subsidy Scheme (ISS): Interest subsidy on housing loans to make home loans affordable to eligible groups.

Implementation and Eligibility

1. The scheme involves States/Union Territories and Primary Lending Institutions for execution.
2. Loans sanctioned from September 1, 2024, onwards are eligible.
3. Beneficiaries must not own a pucca house anywhere in the country.
4. The scheme is a Centrally Sponsored Scheme (CSS), except the ISS vertical which is a Central Sector Scheme.
5. Beneficiaries choose one vertical; this choice is final and cannot be changed later.

Special Focus

• Priority is given to disadvantaged and vulnerable demographics to ensure inclusive urban housing growth.
• The scheme promotes sustainability with provisions for eco-friendly, disaster-resilient houses and encourages community participation for successful implementation.

PMAY-U 2.0 is a large-scale, inclusive mission intended to address the housing shortage in urban India by financially enabling a wide range of urban poor and middle-class families to either own or rent affordable, durable homes, thereby improving quality of life and living standards significantly.

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