Lok Sabha Question No. 1903 (UNSTARRED), answered on 2025-07-31
Subject: Interest Subsidy Scheme for EWS, LIG and MIG Families
Ministry: HOUSING AND URBAN AFFAIRS
Asked by: Dr. Gumma Thanuja Rani

## GOVERNMENT OF INDIA MINISTRY OF HOUSING AND URBAN AFFAIRS

## LOK SABHA

## UNSTARRED QUESTION NO. 1903

## TO BE ANSWERED ON JULY 31, 2025

## INTEREST SUBSIDY SCHEME FOR EWS, LIG AND MIG FAMILIES

## NO. 1903.   DR. GUMMA THANUJA RANI:

Will the Minister of HOUSING AND URBAN AFFAIRS be pleased to state:

- (a) the  details  of  the  Interest  Subsidy  Scheme  for  Economically  Weaker Sections (EWS), Low-Income Group (LIG) and Middle-Income Group (MIG) families  including  the  number  of  beneficiaries  and  the  total  subsidy disbursed so far;
- (b) the process for applying and receiving the interest subsidy on home loans and the mechanisms in place to ensure timely disbursement;
- (c) whether  there  is  any  criteria  for  redeemable  housing  vouchers  for purchasing houses in private projects and if so, the details thereof; and
- (d) the number of beneficiaries who have used redeemable housing vouchers along with its impact on housing affordability in urban areas?

## ANSWER

## THE MINISTER OF STATE IN THE MINISTRY OF HOUSING AND URBAN AFFAIRS (SHRI TOKHAN SAHU)

(a)  to (d): Ministry of Housing and Urban Affairs (MoHUA) has been implementing Pradhan Mantri Awas Yojana - Urban (PMAY-U) since 25.06.2015 with an aim to provide all weather pucca houses with basic civic amenities to all eligible urban beneficiaries  across  the  country.  The  scheme  is  implemented  through  four verticals i.e., Beneficiary Led  Construction  (BLC),  Affordable Housing  in Partnership (AHP), In-Situ Slum Redevelopment (ISSR) and Credit Linked Subsidy Scheme (CLSS).

CLSS vertical ended on 31.03.2022 and for other verticals, the scheme period has been extended up to 31.12.2025 to complete sanctioned houses without changing the funding pattern and implementation methodology.

Credit  Linked  Subsidy  scheme (CLSS) vertical was implemented as a Central Sector Scheme through Central Nodal Agencies (CNAs) such as National Housing Bank  (NHB),  State  Bank  of  India  (SBI)  and  Housing  and  Urban  Development Corporation Ltd. (HUDCO). The application for the availing interest subsidy was submitted by the beneficiaries to the Banks and Housing Finance Companies (HFCs). The CLSS for MIG ended on 31.03.2021 and CLSS for EWS/LIG ended on 31.03.2022. After due diligence, the interest subsidy was released to eligible beneficiaries  by  CNAs  through  Primary  Lending  Institutions  (PLIs).  A  total  of ₹ 58,868.4 crore of interest subsidy has been provided to 25,04,220 beneficiaries under CLSS vertical of PMAY-U.

Furthermore, based on the learnings from the experiences of implementation of PMAY-U, MoHUA has revamped the scheme and launched PMAY-U 2.0 'Housing for All' Mission with effect from 01.09.2024 for implementation in urban areas across the country to construct, purchase and rent a house by 1 crore additional eligible  beneficiaries  at  affordable  cost  in  next  five  years.  PMAY-U  2.0  is implemented  through  four  verticals  i.e.,  Beneficiary  Led  Construction  (BLC), Affordable Housing in Partnership (AHP), Affordable Rental Housing (ARH) and Interest Subsidy Scheme (ISS).

As per the scheme guidelines of PMAY-U 2.0, under ISS vertical, a maximum release  of  interest  subsidy  of  ₹1.80  lakh is  provided  to  eligible  beneficiaries having income up to ₹9 lakh , home loan value up to ₹25 lakh for property value up to ₹35 lakh with carpet area up to 120 sqm. for a subsidy at 4.0% on first ₹8 lakh for a tenure up to 12 years. The subsidy is released in 5 yearly instalments in loan accounts of beneficiary provided loan is active at the time of release of subsidy and more than 50% principal is outstanding. Prospective beneficiaries can apply on unified web portal available at https://pmay-urban.gov.in. So far, a total of ₹ 31.65 crore Interest subsidy has been released to 8,357 beneficiaries under ISS vertical of PMAY-U 2.0.

As per the scheme guidelines of PMAY-U 2.0, Private developers can construct a housing project exclusively for EWS category or a mixed housing project for at least 25% EWS houses on Public Private Partnership (PPP) mode on their own available  encumbrance  free  land  under  AHP  vertical.  After  approval,  these projects are included in the list of 'Whitelisted Project' under PMAY-U 2.0 and the developer can avail various incentives as mentioned in the scheme guidelines. The Central Assistance is provided to the beneficiaries of EWS categories in the form of Redeemable Housing Vouchers (RHV) for purchase of house under such whitelisted projects in PMAY-U 2.0. The housing vouchers are to be issued in the name of selected beneficiaries and redeemed by the developer after sale. So far, recently one whitelisted project having proposed 1,951 dwelling units has been sanctioned for availing the benefit of RHV in Maharashtra and project is in initial stage of construction.

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