Pradhan Mantri Awaas Yojana - Urban

✦Key Features

• PMAY-U 2.0 (Aug 2024): 1 crore houses target over 5 years
• 13.61 lakh houses sanctioned under PMAY-U 2.0 (as of Feb 2026)
• Four verticals: BLC, AHP, ARH (Affordable Rental Housing), ISS (Interest Subsidy Scheme)
• Interest subsidy: 4% on ₹8 lakh (EWS/LIG); 3% on ₹12 lakh (MIG-1); 3% on ₹18 lakh (MIG-2) — PMAY 2.0
• Women ownership mandatory for EWS/LIG beneficiaries
• Affordable Rental Housing Complexes (ARHCs) for urban migrants and poor
• Combined PMAY-U + PMAY-G budget FY2025-26: ₹78,126 crore

✓Eligibility Criteria

• The beneficiary family should not own a pucca house in their name or in the name of any family member in any part of India.
• Economically Weaker Section (EWS) families with an annual household income up to ₹3 lakh.
• Low Income Group (LIG) families with an annual household income between ₹3 lakh and ₹6 lakh.
• Middle Income Group (MIG-I and MIG-II) families are eligible specifically for the Credit Linked Subsidy Scheme (CLSS) component.

★Benefits

• Direct financial assistance for construction or enhancement of houses, reducing the financial burden on beneficiaries.
• Interest subsidy on home loans for eligible EWS, LIG, and MIG beneficiaries under the CLSS component.
• Improved living conditions, sanitation, and safety for urban poor, leading to enhanced quality of life.
• Provides tenure security and asset creation for beneficiaries, contributing to their socio-economic upliftment.

▶Application Process

• Eligible beneficiaries can apply online through the official PMAY-U portal or offline via Common Service Centres (CSCs).
• Applicants must select the appropriate vertical under which they seek assistance (ISSR, CLSS, AHP, or BLC).
• Submission of required documents along with the application form.
• Verification of eligibility and documents by local urban bodies and state-level agencies.
• Sanction and disbursement of financial assistance or subsidy based on the chosen vertical and successful verification.

₹ Budget Allocation

78126

Funding Ratio (Centre:State): Centrally Sponsored Scheme: Shared between Center, State, and ULB. Subsidy ranges from ₹1 lakh to ₹2.67 lakh depending on the vertical.

Historical Context

PMAY-U 1.0 was launched in June 2015 with the goal of 'Housing for All' by 2022. PMAY-U 2.0 was approved by the Cabinet in August 2024 to build an additional 1 crore houses.