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

What is it?

PMAY-U 2.0 is the second phase of the urban Housing for All mission, running for five years from 1 September 2024. It targets urban families in the Economically Weaker Section, Low Income Group and Middle Income Group who do not already own a permanent house anywhere in India.

Support comes through four separate routes. Beneficiary Led Construction gives EWS families a grant to build a house on their own land. Affordable Housing in Partnership gives EWS families central assistance towards a house built by a developer. Affordable Rental Housing creates rented accommodation for EWS and LIG people including urban migrants, the homeless and industrial workers. The Interest Subsidy Scheme, the only route open to MIG households, discounts the interest on a home loan.

Houses built with central assistance must normally be owned by a woman of the household, alone or jointly with her husband.

Potential benefit

₹1,50,000 – ₹2,50,000 per house

Construction routes: Rs 1.5 lakh per unit in most states, Rs 2.25 lakh in the North Eastern and hill states, and Rs 2.5 lakh in union territories. Interest Subsidy Scheme: 4 per cent a year on the first Rs 8 lakh of a home loan for up to 12 years, a maximum benefit of Rs 1.8 lakh released in five yearly instalments, with a maximum eligible loan of Rs 25 lakh and house value of Rs 35 lakh. Potential benefit subject to official approval.

Who can apply?

• You live in an urban area

  Where this comes from

  Families belonging to EWS/LIG/MIG segments, living in urban areas

  Official source ↗
• Your household does not own a permanent house

  Where this comes from

  should not own a pucca house either in his/her name or in the name of any member of his/her family in any part of India

  Official source ↗
• Household income is within the Rs 9 lakh ceiling

  Where this comes from

  Middle Income Group (MIG): Households having an annual income from Rs 6 lakh up to Rs 9 lakh

  Official source ↗
• The house must normally be owned by a woman of the household improves your chances rather than being required

  Where this comes from

  should be in the name of the female head of the household or in the joint name of the male head of the household and his wife

  Official source ↗

Other conditions stated by the government

• Neither you nor any member of your family may own a permanent (pucca) house anywhere in India.
• Your household must live in an urban area and have an annual income of up to Rs 9 lakh. The band decides which route applies: up to Rs 3 lakh is EWS, Rs 3 to 6 lakh is LIG, and Rs 6 to 9 lakh is MIG.
• The two construction routes are open only to EWS households, that is income up to Rs 3 lakh a year. MIG households can use only the Interest Subsidy Scheme.
• Affordable Rental Housing is for EWS and LIG people including urban migrants, the homeless, the destitute and industrial workers.
• Anyone allotted a house under any central, state, union territory or local government housing scheme in the last 20 years is not eligible.
• The house must be in the name of a woman of the household, or jointly with her husband. A male-only title is allowed only where there is no adult woman in the family.
• Aadhaar is required for the applicant and all family members.

Eligibility information is provided for informational purposes only. Final eligibility and approval are determined by the relevant government authority.

Documents you will need

We have not been able to confirm the document list from an official source, so we have left it out rather than guess. Check the official source linked above.

How to apply

Register your demand on the unified web portal, or through your urban local body's demand survey. For the Interest Subsidy Scheme you register on the portal and the claim is then routed through your lending bank or housing finance company. Applications are verified by the state or urban local body before central assistance is released. Aadhaar of the applicant and all family members is mandatory.

Where to apply: online and csc

Deadline

The scheme's stated period runs to 31 August 2029. Individual application deadlines may be earlier - check the official source.