Now urban households earning up to Rs 9 lakh annually will be eligible for interest subsidy scheme (ISS) on home loan for a property measuring not more than 120 sq metre under the newly approved PM Awas Yojna (Urban) scheme, which officials said is aimed at ensuring financial relief for “deserving” beneficiaries — poor, low income and middle income groups.
Earlier, the income limit for interest subsidy benefit was Rs 18 lakh for properties up to 200 sq metre. Similarly, the maximum interest subsidy has been capped at Rs 1.8 lakh compared to earlier average of Rs 2.3 lakh. Govt has also brought in the provision of incentive for building affordable rental housing (ARH) for migrant workers, students and working women’s hostels in cities and towns. The entities building such facilities using new technologies would get assistance of around Rs 1.5 lakh for one bedroom (30 sq metre) from Centre and states.
As per the norm, such dwelling units will comprise of single bedroom upto 30 sqm, double bedroom upto 60 sqm with living area, kitchen, toilet and bathroom and dormitory bed of up to 10 sqm carpet areas each. Officials said soon a web-based interface will be launched where the live details of such units and dormitories available can be viewed for booking. “The rent will be fixed by local authorities based on surveys of surrounding area. The rent can be revised every second year for not more than 8% and capped at 20% in five years,” a source said
Govt has introduced major changes in the interest subsidy scheme category to leave no room for violation of norms, sources said. As per the new norm, beneficiaries taking loan up to Rs 25 lakh for a house costing maximum Rs 35 lakh will be eligible for 4% interest subsidy on first Rs 8 lakh loan up to 12 years. The subsidy will be disbursed in 5-yearly instalments. Beneficiaries can access their accounts through website, OTP or smart cards.
Besides ISS and ARH, the PMAY 2.0 has the third unified component of Beneficiary Led Construction (BLC) and Affordable Housing in Partnership (AHP). Under these, households with income of less than Rs 3 lakh per annum falling in EWS Economically Weaker Section (EWS) category can get financial assistance of up to Rs 2.5 lakh for building a house on their own land or provided by govt or for buying a flat. Sources said the earlier component of in-situ slum redevelopment (ISSR) under the PMAY has been subsumed in AHP as such beneficiaries will get higher assistance of Rs 2.5 lakh compared to earlier norm of Rs 1 lakh.
