Pradhan Mantri Awas Yojana Urban (PMAY 2.0)

Pradhan Mantri Awas Yojana Urban (PMAY-U) 2.0 is the flagship scheme of the Government of India for urban housing, which is aimed at providing eligible families with an opportunity to buy, construct, or rent an affordable house in cities. The scheme is continued with the overall objective of PMAY housing for all by providing assistance to households belonging to the economically weaker section (EWS), lower-income group (LIG), and middle-income group (MIG) categories.

At Kotak Mahindra Bank, our home loan specialists are available to guide you in PMAY-U 2.0 applications.

Interest Subsidy Scheme (ISS)

One of the benefits of PMAY-U 2.0 is the Interest Subsidy Scheme (ISS). Under this scheme, eligible beneficiaries can receive a subsidy of ₹ 1.80 Lakh on their Home Loan. The subsidy is directly credited to the loan account of the beneficiary.

• Interest Subsidy % per annum: 4% on the first 8 Lakhs of the Loan.
• Loan Value: Maximum eligible loan value for subsidy under scheme is ₹ 25 Lakh.
• Home Value: The maximum value of a house under the scheme is ₹ 35 Lakh.
• Carpet Area: Carpet area of the eligible homes is 120 sq. m.
• Lock-in Period: The property shall not be sold or transferred for a mandatory lock-in period of 5 years from the date of first disbursal of the loan.
• Ownership empowers women: Under PMAY-U 2.0, the property must be registered in the name of the female head of the household or jointly with her husband.

Eligibility Criteria for PMAY-U 2.0

For PMAY-U 2.0 scheme eligibility, a family must meet certain criteria with respect to income, ownership and whether they own a permanent house or not. The most important eligibility requirements are:

• In this context, a beneficiary household/family may comprise husband, wife, unmarried sons and/or unmarried daughters
• Beneficiary household/family should not own a ‘pucca house’ (permanent, all-weather dwelling) anywhere in India
• The income requirements for the beneficiary household/family are:
  • EWS (Economically Weaker Section) :Households with annual income upto ₹ 3 Lakh
  • LIG (Low Income Group) :Families with annual household income between ₹ 3 Lakh to ₹ 6 Lakh
  • MIG (Middle Income Group) :Families with annual household income of ₹ 6 Lakh to ₹ 9 Lakh

Women – Ownership of an Empowerment Move

PMAY-U 2.0 also lays emphasis on women's property ownership. As per the scheme, homes will be registered in the name of the female head of the family or jointly with her husband. The intent of this provision is to promote women home ownership and secure their financial future.

This condition is waived only if there is no adult female in the family. The home can be registered in the name of the widower, unmarried person, or transgender person.

PMAY-U 2.0 exclusions

No Prior Benefits:

PMAY-U 2.0 does not apply to families allotted a house under any Central, State, or local government scheme for housing for the last 20 years.

Sale of Property:

During the lock-in period, if the property is sold, the original subsidy is not transferable. Only one subsidy is granted for an eligible property.

Balance Transfers on Loans:

If the Home Loan is transferred to another financial institution, the subsidy cannot be claimed after the transfer. The beneficiary must claim the subsidy from the original lender.

Non-Performing Assets (NPA)

The loan becomes NPA when the borrower/beneficiary defaults in repayment.

The above-mentioned exclusions may not be comprehensive, and the decision to grant benefits under PMAY-U 2.0 rests with NHB.

Steps to Apply For PMAY-U 2.0 with Kotak Mahindra Bank

Kotak Mahindra Bank is an authorized Primary Lending Institution (PLI) under PMAY-U 2.0, enabling eligible customers to apply for a home loan and claim the ISS subsidy through a single, guided process.

• Enquire for a Home Loan at your nearest branch or Express Interest through Kotak's online platform. Our Home Loan advisor will contact you and brief you about the product details. Apply Now*
• The interested and eligible applicants desirous of availing the benefits of the scheme are required to register themselves on the Unified Web Portal of PMAY-U 2.0 launched by the Ministry of Housing and Urban Affairs.
• Submit your PMAY-U 2.0 application on the portal and choose the PLI as Kotak Mahindra bank. Click to register
• If your Home Loan is eligible under the scheme, we will forward your PMAY 2.0 application to the NHB for processing under the PMAY-U 2.0 ISS Scheme.
• Subsidy will be credited to your loan account once NHB verifies and approves your PMAY-U 2.0 application through the unified web portal and releases the subsidy amount.

With attractive interest rates, flexible repayment options, and a hassle-free loan application process, Kotak Mahindra Bank can help you make the most of the PMAY-U 2.0 scheme and ensure that you can own your dream home without any hassles.

The above details are extracts of the PMAY-U 2.0 scheme. Borrowers are requested to go through the entire scheme issued/amended by the Ministry of Housing and Urban Affairs (MoHUA) from time to time.

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