PM Modi launches urban housing relief scheme

In his address on the 77th Independence Day, Prime Minister Narendra Modi announced an upcoming government scheme to offer interest relief on bank loans for individuals aspiring to own homes in urban areas. The scheme aims to assist middle-class families residing in cities without their own residences.

Modi acknowledged the challenges faced by impoverished urban dwellers lacking proper housing. He emphasized the government's commitment to addressing this issue by launching the new scheme.

"We are aware that middle-class families in cities dream of having their own homes. In the near future, we will introduce a scheme to extend support in the form of substantial relief in bank loan interest. This assistance will empower families living in rented accommodations, unauthorized colonies, and slums within cities to construct their own dwellings," Modi declared from the Red Fort.

The existing Pradhan Mantri Awas Yojana Urban (PMAY-U) already caters to housing needs of the urban poor. This initiative, initiated by Modi on June 25, 2015, focuses on providing well-structured homes with essential amenities to eligible urban beneficiaries nationwide.

As of July 31, 2023, the Union Housing and Urban Affairs Ministry has sanctioned 118.90 lakh houses based on project proposals submitted by states and Union territories. Of these sanctioned units, 76.02 lakh have been successfully completed and handed over to beneficiaries.

PMAY-U operates through four avenues: beneficiary-led construction, affordable housing in partnership, in-situ slum redevelopment, and the credit-linked subsidy scheme. These verticals cater to eligible candidates in accordance with set criteria.

While the initial timeline for PMAY-U was extended until March 31, 2022, the period has been prolonged to December 31, 2024 (excluding the credit-linked subsidy scheme). The objective is to complete all houses sanctioned by March 31, 2022, maintaining the existing funding pattern and implementation approach.

Under PMAY-U, the central government contributes Rs 1 lakh for the in-situ slum redevelopment segment and Rs 1.5 lakh for the affordable housing in partnership and beneficiary-led construction segments, adhering to the fixed shares.

Modi's announcement underscores the government's commitment to addressing housing challenges and ensuring that urban dwellers can realize their dream of homeownership.