PMAY-U 2.0 BOOSTS SUPPORT FOR HOUSING FINANCIERS

Why in the news?

PMAY-U 2.0, approved by the Union Cabinet, increases the Credit Guarantee Fund corpus to ₹3,000 crore and aims to support 1 crore urban poor families with affordable housing.

PMAY-U 2.0 BOOSTS SUPPORT FOR HOUSING FINANCIERS - UPSCsource:researchgate

Understanding the enhanced support for Housing Financiers:

  • The Pradhan Mantri Awas Yojana (Urban) 2.0 (PMAY-U 2.0), launched to address the housing shortage among the urban poor, will provide increased support to financiers and investors.
  • The government has raised the Credit Guarantee Fund Trust corpus from ₹1,000 crore to ₹3,000 crore to offer risk guarantees on affordable housing loans provided by banks, housing finance companies, and primary lending institutions.
  • The management of this fund will be transferred from the National Housing Bank to the National Credit Guarantee Company, with new guidelines to be issued soon.

Key Impacts on Affordable Housing:

  • The Credit Guarantee Fund Trust acts as a safeguard for financiers and investors against potential losses in credit transactions related to affordable housing for the economically weaker sections (EWS) and lower-income groups (LIG).
  • As of now,64 lakh houses have been sanctioned under the PMAY-U scheme, and PMAY-U 2.0 aims to provide financial assistance to 1 crore urban poor and middle-class families over the next five years.
  • The scheme includes a government subsidy of ₹2.3 lakh crore and a total investment of ₹10 lakh crore.

About Technological and Financial Collaborations:

  • The cost of house construction will be shared among the Central and State governments, Union Territories, urban local bodies, and eligible beneficiaries.
  • PMAY-U 2.0 will also introduce a separate Technology and Innovation Sub-Mission (TISM) to promote technological advancements and innovation in the housing sector, enhancing the efficiency and quality of affordable housing projects.
About The Pradhan Mantri Awas Yojana-Urban (PMAY-U):

PMAY-Urban:

  • Launch Date: The Pradhan Mantri Awas Yojana-Urban (PMAY-U) was launched on June 25, 2015.
  • Objective: The mission aims to provide dignified housing for urban migrants and the urban poor, addressing the housing shortage in urban areas for Economically Weaker Sections (EWS), Lower Income Groups (LIG), and Middle-Income Groups (MIG), including slum dwellers.

PMAY-U 2.0 and Achievements:

  • Nodal Agency: The Ministry of Housing and Urban Affairs oversees PMAY-U, a key initiative to provide all-weather pucca houses to urban beneficiaries.
  • Achievements: As of now, 1.18 crore houses have been sanctioned under PMAY-U, with over 85.5 lakh houses already constructed and delivered to beneficiaries.

Mission Goals and Beneficiaries:

  • Housing Assurance: PMAY-U ensures that every eligible urban household has access to a pucca house, focusing on those without existing permanent housing.
  • Target Groups: The scheme primarily benefits EWS, LIG, MIG categories, and slum dwellers who face housing shortages in urban areas.
  • Beneficiary Criteria: A beneficiary family consists of a husband, wife, and unmarried children. They should not own a pucca house in any part of India.

Associated Article:

https://universalinstitutions.com/pradhan-mantri-awas-yojana-urbanpmay-u/