Pradhan Mantri Awas Yojana Urban – Credit Link Subsidy Scheme

Pradhan Mantri Awas Yojana Urban:- Prime Minister Narendra Modi leaded Central government launched Pradhan Mantri Awas Yojana – Housing for All (Urban). The scheme has launched to provide the house to all shelterless and needy urban people by 2022. Housing for All (Urban) provides houses only for the urban people. The main feature of the Pradhan Mantri Awas Yojana is a credit linked subsidy scheme, under the scheme the government provides interest subsidy to the beneficiary for the housing loan.

The central government provides assistance to States and UTs for constructing houses in the mainly slum area and for economically weaker sections for all the eligible sections under Pradhan Mantri Awas Yojana Urban. The main aims of the scheme are slum rehabilitation and affordable housing to economically weaker sections.

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The Interest subsidy is given in the form of credit linked subsidy in three sections for different income group in urban area:-

  • 6.5 percent interest subsidy for the economically weaker section whose annual income is less than Rs 3 lakh.
  • The interest subsidy for Low Income Group is 6.5 percent whose annual income is between Rs 300001 to Rs 6 lakh.
  • 4 percent for the Middle Income Group 1 whose annual income is between Rs 600001 to Rs 12 lakh
  • For Middle Income Group 2 whose annual income is between Rs 12 lakh to Rs 18 lakh, the interest subsidy is 3 percent.

Components of Pradhan Mantri Awas Yojana Urban

The higher income group, interest subsidy will be lower and the lower income group interest subsidy will be higher. The credit linked subsidy will be given on the basis of eligibility. The house will be constructed with the basic facility like the toilet, water, electricity etc. The carpet area of EWS house will be up to 30 sq meters. The loan will be given up to 20 years tenure for both EWS/LIG categories. The central government gives Rs 1.5 lakh per unit under the scheme.

The interest subsidy for the MIG is 4 percent for the whose annual income is between Rs 6 lakh to Rs 12 lakh and the loan amount of 9 lakh up to 20 years. 3 percent interest subsidy for MIG category whose annual income is between Rs 12 lakh to Rs 18 lakh.

The Ministry of Housing and Urban Poverty has sanctioned about 28.57 lakh affordable house till October 2017 under PMAY- Urban with the total investment of Rs 1.54 lakh crore.







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