Union Minister of Finance Nirmala Sitharaman while presenting Budget 2023 has proposed to increase the allocation made towards the Pradhan Mantri Awas Yojana by 66% to Rs 79,000 in the Union Budget 2023-24.
Pradhan Mantri Awas Yojana – Urban (PMAY-U) was extended on August 17, 2022 up to December 2024 with all the verticals except Credit Link Subsidy (CLSS). CLSS for EWS and LIG were till March 31, 2022.
During the extended period, no new houses were to be sanctioned. The additional outlay could be for completing the existing projects.
“This allocated amount is expected to address more than 55% of the estimated deficit in funds for projects under the scheme, providing a huge impetus in providing housing to those in need and bridging the gap between those without access to proper dwellings and those who do. This improved subsidy will ensure that urban and rural homes are constructed within the allocated time frame and according to the set standards,” Sandeep Runwal – President, NAREDCO Maharashtra.
“The outlay for the PMAY scheme has been increased from 66% to Rs 79,000 crore, which represents a significant increase in funding for the program. This increase in funding will likely help the government achieve its goal of providing affordable housing to more people and contribute to the overall growth and development of the country,” says Arpit Mehrotra, MD, office services, south India & head of flex | India, Colliers.
Adhil Shetty, CEO, Bankbazaar.com says, “The outlay for PM Awaas Yojana being enhanced by 66% to over Rs 79,000 crores. The PM Awas Yojna hike is great news in the affordable housing market. Eligible home owners can expect interest subvention relief on their properties.”
With the PMAY CLSS, qualifying borrowers were to obtain a home loan from banks and housing finance firms at a reduced interest rate, achieving the goal of “Housing for All.”
Under PMAY-U, Individuals who belong under MIG-I and have an annual income between Rs. 6 lakh and Rs. 12 lakh were eligible for a 4% interest subsidy on loans up to Rs. 9 lakh. Similarly, people whose income is between Rs. 12 lakh and Rs. 18 lakh fall under MIG-II and were eligible for a 3% interest subsidy on loans up to Rs. 9 lakh.