Executive Summary:
The Ministry of Housing and Urban Affairs (MoHUA) has been implementing Pradhan Mantri Awas Yojana-Urban (PMAY-U) since June 25, 2015, to provide pucca houses to eligible urban beneficiaries. The scheme includes the Credit Linked Subsidy Scheme (CLSS), which ended on March 31, 2022, and has been revamped into PMAY-U 2.0, effective September 1, 2024, with an Interest Subsidy Scheme (ISS). PMAY-U 2.0 aims to assist an additional one crore beneficiaries over the next five years.
Key Points / Main Content:
Pradhan Mantri Awas Yojana-Urban (PMAY-U):
* Implemented since June 25, 2015, to provide pucca houses with basic amenities to eligible urban beneficiaries.
* Implemented through four verticals: Beneficiary Led Construction (BLC), Affordable Housing in Partnership (AHP), In-Situ Slum Redevelopment (ISSR), and Credit Linked Subsidy Scheme (CLSS).
* Scheme period extended up to December 31, 2025, for all verticals except CLSS, to complete sanctioned houses.
Credit Linked Subsidy Scheme (CLSS):
* Implemented as a Central Sector Scheme through Central Nodal Agencies (CNAs) like NHB, SBI, and HUDCO.
* Beneficiaries applied for interest subsidy through Banks and Housing Finance Companies (HFCs).
* CLSS for MIG ended on March 31, 2021, and CLSS for EWS/LIG ended on March 31, 2022.
* Total interest subsidy of ₹58,868.4 crore provided to 25,04,220 beneficiaries.
Pradhan Mantri Awas Yojana-Urban 2.0 (PMAY-U 2.0):
* Launched on September 1, 2024, to construct, purchase, and rent houses for an additional one crore beneficiaries.
* Implemented through four verticals: Beneficiary Led Construction (BLC), Affordable Housing in Partnership (AHP), Affordable Rental Housing (ARH), and Interest Subsidy Scheme (ISS).
Interest Subsidy Scheme (ISS) under PMAY-U 2.0:
* Maximum interest subsidy of ₹1.80 lakh for eligible beneficiaries with income up to ₹9 lakh.
* Home loan value up to ₹25 lakh for property value up to ₹35 lakh with carpet area up to 120 sqm.
* Subsidy at 4.0% on the first ₹8 lakh for a tenure of up to 12 years.
* Subsidy released in 5 yearly installments if the loan is active and more than 50% of the principal is outstanding.
* Application available on unified web portal: https://pmayurban.gov.in.
* ₹31.65 crore interest subsidy released to 8,357 beneficiaries so far.
Redeemable Housing Vouchers (RHV):
* Under AHP vertical, private developers can construct projects exclusively for EWS or mixed housing projects with at least 25 EWS houses on PPP mode.
* Projects are included in the list of Whitelisted Projects under PMAYU 2.0, allowing developers to avail incentives.
* Central Assistance provided to EWS beneficiaries in the form of Redeemable Housing Vouchers (RHV) for purchasing houses in whitelisted projects.
* Housing vouchers are issued in the name of selected beneficiaries and redeemed by the developer after sale.
* One whitelisted project with 1,951 dwelling units sanctioned in Maharashtra for RHV benefits.
Impact Analysis:
Beneficiaries (EWS, LIG, MIG):
* Impact: Access to affordable housing through interest subsidies and housing vouchers, reducing the financial burden of homeownership.
* Action Required: Apply for subsidies through Banks/HFCs or the unified web portal (PMAY-U 2.0) and utilize housing vouchers for eligible projects.
Banks and Housing Finance Companies (HFCs):
* Impact: Serve as primary lending institutions (PLIs) for processing and disbursing interest subsidies.
* Action Required: Facilitate the application process for beneficiaries, conduct due diligence, and coordinate with CNAs for subsidy disbursement.
Central Nodal Agencies (CNAs - NHB, SBI, HUDCO):
* Impact: Oversee the implementation of the CLSS and ISS, release interest subsidies to PLIs.
* Action Required: Ensure timely disbursement of subsidies to eligible beneficiaries through PLIs.
Private Developers:
* Impact: Opportunity to participate in affordable housing projects through AHP vertical, with incentives for constructing EWS housing.
* Action Required: Construct housing projects that meet the EWS criteria and register them as whitelisted projects under PMAY-U 2.0 to avail benefits.
Key Entities Referenced
Ministry of Housing and Urban Affairs (MoHUA): The Indian government ministry responsible for the Pradhan Mantri Awas Yojana (Urban) PMAYU scheme and its various iterations.
Pradhan Mantri Awas Yojana Urban (PMAYU): A Government of India scheme launched on 25.06.2015 to provide pucca houses with basic civic amenities to eligible urban beneficiaries.
Credit Linked Subsidy Scheme (CLSS): A vertical under PMAYU that provided interest subsidies on home loans to Economically Weaker Sections (EWS), Low-Income Group (LIG), and Middle-Income Group (MIG) families, which ended on 31.03.2022.
National Housing Bank (NHB): A Central Nodal Agency (CNA) for the Credit Linked Subsidy Scheme (CLSS) vertical of PMAYU.
State Bank of India (SBI): A Central Nodal Agency (CNA) for the Credit Linked Subsidy Scheme (CLSS) vertical of PMAYU.
Housing and Urban Development Corporation Ltd. (HUDCO): A Central Nodal Agency (CNA) for the Credit Linked Subsidy Scheme (CLSS) vertical of PMAYU.
PMAYU 2.0 Housing for All Mission: A revamped version of the Pradhan Mantri Awas Yojana (Urban) PMAYU scheme, launched on 01.09.2024, to provide housing for all with a focus on affordable cost and additional beneficiaries.
Maharashtra: A state in India where a whitelisted project under PMAYU 2.0 has been sanctioned for availing the benefit of Redeemable Housing Vouchers (RHV).
GOVERNMENT OF INDIA
MINISTRY OF HOUSING AND URBAN AFFAIRS
LOK SABHA
UNSTARRED QUESTION NO. 1903
TO BE ANSWERED ON JULY 31, 2025
INTEREST SUBSIDY SCHEME FOR EWS, LIG AND MIG FAMILIES
NO. 1903. DR. GUMMA THANUJA RANI:
Will the Minister of HOUSING AND URBAN AFFAIRS be pleased to state:
(a) the details of the Interest Subsidy Scheme for Economically Weaker
Sections (EWS), Low-Income Group (LIG) and Middle-Income Group (MIG)
families including the number of beneficiaries and the total subsidy
disbursed so far;
(b) the process for applying and receiving the interest subsidy on home loans
and the mechanisms in place to ensure timely disbursement;
(c) whether there is any criteria for redeemable housing vouchers for
purchasing houses in private projects and if so, the details thereof; and
(d) the number of beneficiaries who have used redeemable housing vouchers
along with its impact on housing affordability in urban areas?
ANSWER
THE MINISTER OF STATE IN THE
MINISTRY OF HOUSING AND URBAN AFFAIRS
(SHRI TOKHAN SAHU)
(a) to (d): Ministry of Housing and Urban Affairs (MoHUA) has been implementing
Pradhan Mantri Awas Yojana - Urban (PMAY-U) since 25.06.2015 with an aim to
provide all weather pucca houses with basic civic amenities to all eligible urban
beneficiaries across the country. The scheme is implemented through four
verticals i.e., Beneficiary Led Construction (BLC), Affordable Housing in
Partnership (AHP), In-Situ Slum Redevelopment (ISSR) and Credit Linked Subsidy
Scheme (CLSS).
CLSS vertical ended on 31.03.2022 and for other verticals, the scheme period
has been extended up to 31.12.2025 to complete sanctioned houses without
changing the funding pattern and implementation methodology.
Credit Linked Subsidy scheme (CLSS) vertical was implemented as a Central
Sector Scheme through Central Nodal Agencies (CNAs) such as National Housing
Bank (NHB), State Bank of India (SBI) and Housing and Urban Development
Corporation Ltd. (HUDCO). The application for the availing interest subsidy was
submitted by the beneficiaries to the Banks and Housing Finance Companies
(HFCs). The CLSS for MIG ended on 31.03.2021 and CLSS for EWS/LIG ended on
31.03.2022. After due diligence, the interest subsidy was released to eligible
beneficiaries by CNAs through Primary Lending Institutions (PLIs). A total of
₹58,868.4 crore of interest subsidy has been provided to 25,04,220 beneficiaries
under CLSS vertical of PMAY-U.
…2/--2-
Furthermore, based on the learnings from the experiences of implementation of
PMAY-U, MoHUA has revamped the scheme and launched PMAY-U 2.0 ‘Housing
for All’ Mission with effect from 01.09.2024 for implementation in urban areas
across the country to construct, purchase and rent a house by 1 crore additional
eligible beneficiaries at affordable cost in next five years. PMAY-U 2.0 is
implemented through four verticals i.e., Beneficiary Led Construction (BLC),
Affordable Housing in Partnership (AHP), Affordable Rental Housing (ARH) and
Interest Subsidy Scheme (ISS).
As per the scheme guidelines of PMAY-U 2.0, under ISS vertical, a maximum
release of interest subsidy of ₹1.80 lakh is provided to eligible beneficiaries
having income up to ₹9 lakh, home loan value up to ₹25 lakh for property value
up to ₹35 lakh with carpet area up to 120 sqm. for a subsidy at 4.0% on first ₹8
lakh for a tenure up to 12 years. The subsidy is released in 5 yearly instalments
in loan accounts of beneficiary provided loan is active at the time of release of
subsidy and more than 50% principal is outstanding. Prospective beneficiaries
can apply on unified web portal available at https://pmay-urban.gov.in. So far, a
total of ₹ 31.65 crore Interest subsidy has been released to 8,357 beneficiaries
under ISS vertical of PMAY-U 2.0.
As per the scheme guidelines of PMAY-U 2.0, Private developers can construct a
housing project exclusively for EWS category or a mixed housing project for at
least 25% EWS houses on Public Private Partnership (PPP) mode on their own
available encumbrance free land under AHP vertical. After approval, these
projects are included in the list of ‘Whitelisted Project’ under PMAY-U 2.0 and the
developer can avail various incentives as mentioned in the scheme guidelines.
The Central Assistance is provided to the beneficiaries of EWS categories in the
form of Redeemable Housing Vouchers (RHV) for purchase of house under such
whitelisted projects in PMAY-U 2.0. The housing vouchers are to be issued in the
name of selected beneficiaries and redeemed by the developer after sale. So far,
recently one whitelisted project having proposed 1,951 dwelling units has been
sanctioned for availing the benefit of RHV in Maharashtra and project is in initial
stage of construction.
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