Government Revives Interest Subsidy for Housing, Allocates ₹4,000 Crore for PMAY-U 2.0

The government reintroduces interest subsidy under the Pradhan Mantri Awas Yojana (Urban) 2.0, allocating ₹4,000 crore for the Credit Linked Subsidy Scheme (CLSS). The 2024-25 Union Budget sees a 20.19% increase in PMAY-U funds, aiming to build an additional 3 crore houses in rural and urban areas. Central assistance of ₹2.2 lakh crore is also announced to meet the housing requirements of urban poor and middle-class families.

The government on Tuesday reintroduced the interest subsidy under the Pradhan Mantri Awas Yojana (Urban) 2.0, earmarking ₹4,000 crore for the Credit Linked Subsidy Scheme (CLSS). Announced as part of the 2024-25 Union Budget, the PMAY-U has been granted ₹30,170 crore, marking a 20.19% increase from the previous year.

According to the Union Housing and Urban Affairs Ministry, the interest subsidy will be accessible to the economically weaker section (EWS), lower income group (LIG), and middle income group. The CLSS had not been extended two years ago, leaving many without subsidized home loans based on income.

Finance Minister Nirmala Sitharaman revealed plans to construct three crore additional houses in rural and urban areas under PMAY. A substantial ₹3,000 crore has been allocated for EWS and LIG groups, along with ₹1,000 crore for the middle income group. Central assistance of ₹2.2 lakh crore over the next five years aims to address the housing needs of one crore urban poor and middle-class families.

(With inputs from agencies.)