National Housing Bank (NHB) on Thursday entered into separate Memorandums of Understanding (MoUs) with 116 Primary Lending Institutions (PLIs) for implementation of the Interest Subsidy Scheme (ISS) under the Pradhan Mantri Awas Yojana -- Urban 2.0 (PMAY-U 2.0).

The MoUs were signed at the National Workshop on Pradhan Mantri Awas Yojana (U) 2.0 in the presence of Manohar Lal, Union Minister of Housing & Urban Affairs and Power. 

PLIs with whom MoUs were signed included housing finance companies, public and private sector banks, regional rural banks, small finance banks and co-operative banks. 

Further, the Unified Web Portal -- ISS -- was introduced by NIC and MoHUA during the day-long workshop.

PMAY-U 2.0 was launched by Prime Minister Narendra Modi on September 17, 2024. It will provide financial assistance to 1 crore urban poor and middle-class families in the next five years.

Minister Manohar Lal called upon the banks and financial institutions to ensure that the interface between the borrowers and the lending institutions is more humane. 

By facilitating the flow of interest subsidy benefits not only to the bottom of the pyramid, but also the middle of the pyramid, the lending institutions were performing an invaluable service to society, the Minister noted.

Srinivas Katikithala, Secretary, Ministry of Housing & Urban Affairs, said PMAY – Urban was the biggest such scheme in the world to address the housing shortage in the country. 

He said in view of the changing aspirations and perceptions of the younger generation, as well as the technological advancements available today, the need of the hour is to adopt novel paradigms to address issues associated with housing in an innovative manner. 

 M P Tangirala, Additional Secretary, Department of Financial Services, lauded the efforts of the National Housing Bank and the financial sector in making the Credit Linked Subsidy Scheme a success.

He expressed confidence that all the stakeholders would work together seamlessly to make the scheme a success.

Sanjay Shukla, MD, NHB, emphasised on the importance of housing for the economic & social security of the common man, and the satisfaction and the encouragement which the lenders get in interactions with the beneficiaries of the subsidy scheme. 

He called on the housing finance sector to work with renewed vigour towards making it a success.

Kuldip Narayan, Joint Secretary (HFA), Ministry of Housing & Urban Affairs, expressed confidence that ISS will establish new paradigms of success in addressing the housing shortage in the country.

He said the new scheme was developed by MoHUA with feedback from National Housing Bank addressed many of the issues and bottlenecks associated with the earlier Credit Linked Subsidy Scheme

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