Pradhan Mantri Awas Yojana - Urban 2.0 (PMAY-U 2.0)

What is PMAY-U 2.0?

Pradhan Mantri Awas Yojana - Urban 2.0 (PMAY-U 2.0) is the second phase of the central urban housing mission, approved by the Union Cabinet on 9 August 2024. It provides financial assistance to 1 crore urban poor and middle-class families to construct, purchase or rent a house at an affordable cost in urban areas over five years, through states, union territories and primary lending institutions.

According to the Press Information Bureau, PMAY-U 2.0 involves an investment of Rs 10 lakh crore with government assistance of Rs 2.30 lakh crore. It follows the first PMAY-U mission, under which 1.18 crore houses had been sanctioned and more than 85.5 lakh houses had been constructed and delivered when PMAY-U 2.0 was approved.

PMAY-U 2.0 is implemented as a Centrally Sponsored Scheme, except the Interest Subsidy Scheme component, which is a Central Sector Scheme funded fully by the Centre.

Key objectives

• Address the housing needs of EWS, LIG and MIG families that own no pucca house.
• Support ownership through construction and purchase, and rental housing for those who do not want to or cannot own.
• Promote modern, green and disaster-resistant construction technologies.
• Push states and UTs to frame an Affordable Housing Policy that improves affordability.

Main features

• Four verticals: BLC, AHP, ARH and ISS.
• Rs 2.50 lakh per unit government assistance under AHP and BLC.
• Up to Rs 1.80 lakh home loan interest subsidy under ISS.
• Credit Risk Guarantee Fund Trust corpus increased from Rs 1,000 crore to Rs 3,000 crore, with management moving from the National Housing Bank to NCGTC.
• Technology and Innovation Sub-Mission (TISM) to promote modern, green construction.
• State or UT share is mandatory under the scheme.

Who is eligible for PMAY-U 2.0?

You can apply if:

• Your family belongs to the EWS, LIG or MIG category and owns no pucca house anywhere in the country.
• Your annual household income is up to Rs 3 lakh (EWS), Rs 3 lakh to Rs 6 lakh (LIG) or Rs 6 lakh to Rs 9 lakh (MIG).
• You live in a statutory town as per Census 2011 or a town notified subsequently, including notified planning areas and areas under an Industrial Development Authority, Special Area Development Authority, Urban Development Authority or a similar authority entrusted with urban planning under state law.
• For the BLC vertical, you are an EWS family with your own vacant land. If you are landless, the state or UT may provide land rights (pattas).
• For the ISS vertical, your home loan was sanctioned and disbursed on or after 1 September 2024, the loan is up to Rs 25 lakh, the house value is up to Rs 35 lakh, and the carpet area does not exceed 120 sqm.

You cannot apply if:

• Your family owns a pucca house anywhere in India. This is the single most common ground for rejection.
• Your annual household income exceeds Rs 9 lakh, the MIG ceiling.
• You live outside the scheme's urban coverage - the scheme applies to statutory towns and notified planning or development areas, not to rural areas, which are served by PMAY-Gramin.
• For ISS, your loan was sanctioned before 1 September 2024, the loan amount exceeds Rs 25 lakh, the house value exceeds Rs 35 lakh, or the carpet area exceeds 120 sqm.
• The subsidy has already been claimed on the same property - the ISS page states that the subsidy applies once per property.
• You have transferred your loan balance to another lender after claiming the subsidy; such balance transfers disqualify subsequent claims.
• You submit a false income declaration, which attracts legal action.

What are the four verticals of PMAY-U 2.0?

Beneficiary-Led Construction (BLC) provides financial assistance to individual eligible EWS families to construct a new house on their own available vacant land. Where the beneficiary is landless, the state or UT may provide land rights (pattas).

Affordable Housing in Partnership (AHP) provides financial assistance to EWS beneficiaries for owning houses built in partnership by states, UTs, cities and public or private agencies. Beneficiaries purchasing from private projects receive Redeemable Housing Vouchers, and states, UTs and ULBs whitelist the private projects that comply with the required norms. AHP projects using innovative construction technologies get an additional Technology Innovation Grant of Rs 1,000 per sqm up to 30 sqm per dwelling unit.

Affordable Rental Housing (ARH) creates rental housing for working women, industrial workers, urban migrants, homeless and destitute persons, students and other eligible beneficiaries who do not want to own a house or cannot afford to build or buy one. It runs on two models - Model 1, converting existing government-funded vacant houses in cities into rental housing under PPP or through public agencies, and Model 2, construct, operate and maintain rental housing by private or public agencies. For projects using innovative technologies, the Centre releases a TIG of Rs 3,000 per sqm and the state or UT contributes Rs 2,000 per sqm.

Interest Subsidy Scheme (ISS) subsidises home loans for EWS, LIG and MIG families for purchase, repurchase or construction of a house.

What documents are required for PMAY-U 2.0?

How to apply for PMAY-U 2.0

1. Go to pmay-urban.gov.in and open the "Apply for PMAY-U 2.0" link, which takes you to the PMAY MIS portal at pmaymis.gov.in.
2. Read the eligibility conditions displayed and confirm that your family owns no pucca house anywhere in India and that your annual household income is within the Rs 3 lakh / Rs 6 lakh / Rs 9 lakh limits for EWS, LIG and MIG.
3. Select the vertical you are applying under - BLC, AHP, ARH or ISS.
4. Complete Aadhaar authentication for the applicant and family members, and enter income, family and address details.
5. Register your housing demand on the unified web portal. For ISS, applications are then forwarded to the Primary Lending Institution (PLI), which verifies the applicant against the income criteria.
6. Upload the supporting documents - income proof, self-declaration, land papers for BLC, and loan and property papers for ISS - and submit the application.
7. Note the application number shown on screen and track the status on the MIS portal. Applications under BLC and AHP go to the Urban Local Body and the state for verification and sanction.
8. Complete geo-tagging where required. For ISS, geo-tagging is done after the first instalment for a completed house, and before each instalment for a house under construction.

How much benefit does PMAY-U 2.0 provide?

Construction verticals (AHP and BLC): Government assistance is Rs 2.50 lakh per unit. The Centre-state split varies:

State and UT share is mandatory, and states may add a top-up above the minimum to improve affordability.

Interest Subsidy Scheme: A beneficiary taking a loan of up to Rs 25 lakh for a house valued up to Rs 35 lakh gets a 4% interest subsidy on the first Rs 8 lakh of the loan, for a tenure of up to 12 years. The maximum release is Rs 1.80 lakh, with a net present value of Rs 1.50 lakh at a discount rate of 8.5%. Subsidy is released in five equal yearly instalments through push button, provided the loan account is active and more than 50% of the principal is outstanding. Beneficiaries can access their accounts through the website, OTP or smart cards.

What is the Technology and Innovation Sub-Mission?

The Technology and Innovation Sub-Mission (TISM) is set up under PMAY-U 2.0 to guide states, UTs and other stakeholders in adopting modern, innovative and green technologies and building materials for faster, better-quality construction. Under TISM, states, UTs and cities are supported through innovative practices and challenge-mode projects focused on disaster-resistant and environment-friendly technologies for climate-smart buildings and resilient housing.

What is the Affordable Housing Policy condition?

To draw benefits under PMAY-U 2.0, every state and UT must frame an Affordable Housing Policy containing reforms and incentives that bring public and private entities into affordable housing and improve its affordability. This is a condition of participation, not an optional add-on.

Separately, the corpus of the Credit Risk Guarantee Fund Trust has been raised from Rs 1,000 crore to Rs 3,000 crore to provide credit risk guarantee on affordable housing loans from banks, housing finance companies and other primary lending institutions to EWS and LIG borrowers buying or building their first home. Management of the fund is being transferred from the National Housing Bank to the National Credit Guarantee Company (NCGTC), and the guarantee scheme is being restructured with modified guidelines to be issued by MoHUA.

How is PMAY-U 2.0 different from the original PMAY-Urban?

PMAY-U 2.0 is a separate, later mission. The original PMAY-Urban, launched in 2015, ran through the verticals of In-Situ Slum Redevelopment, Affordable Housing in Partnership, Beneficiary-Led Construction and the Credit Linked Subsidy Scheme. PMAY-U 2.0, approved in August 2024, replaces the Credit Linked Subsidy Scheme with the Interest Subsidy Scheme, adds Affordable Rental Housing as a vertical, and extends eligibility explicitly to MIG families earning up to Rs 9 lakh a year. If you are checking an older sanction or a CLSS claim, that belongs to the first mission, not to PMAY-U 2.0.

Where to get help with PMAY-U 2.0

• MoHUA contact numbers listed on pmay-urban.gov.in: 011-23063285, 011-23060484, 011-23063620, 011-23063567 and 011-23061827.
• PMAY MIS portal at pmaymis.gov.in for application status and beneficiary search.
• Your Urban Local Body for BLC and AHP verification, geo-tagging and instalment queries.
• Your bank or housing finance company for ISS claims, since the lender files the subsidy claim with the National Housing Bank.

There is no application fee for PMAY-U 2.0 and no agent is authorised to secure a sanction for you. Do not pay anyone to add your name to a beneficiary list.