After a long wait, the Pradhan Mantri Awas Yojana (PMAY) 2.0 is finally here, bringing a much-needed opportunity for millions of families in urban areas to own or rent a home at an affordable price. Many of us have been eagerly waiting for this, and now it’s a reality.
This updated version of the original scheme, which was first launched in 2015, is designed to solve the housing problems faced by people living in cities. Whether you’re a low-income family, a migrant worker, or someone in the middle-income group, PMAY 2.0 offers a solution that could help you secure a home.
What is PMAY-U 2.0?
PMAY-U 2.0 helps urban families who do not have a permanent house. Through this scheme they get pucca houses with basic amenities like water connection, electricity and own toilet. Apart from this, it also provides cheap rental houses for migrants who come to the cities to work and also emphasizes on building eco-friendly houses.
This scheme, a joint effort between the government, private builders, and other partners, is designed to make homeownership and rental housing more affordable for EWS, Low and Middle income groups.
Who Can Apply? (Eligibility Criteria)
- Income Groups Covered:
- Economically Weaker Section (EWS): Annual income up to ₹3 lakh.
- Lower Income Group (LIG): Annual income between ₹3–6 lakh.
- Middle Income Group (MIG): Annual income between ₹6–9 lakh.
- The applicant or their family must not own a permanent house anywhere in India.
- Special focus is given to women, senior citizens, minorities, and differently-abled individuals.
- The scheme is available for buying or building a home.
- The applicant must not have taken any housing scheme or subsidy from the state or central government in the last 20 years.
- The property must be located in an urban area.
- The maximum property value should not exceed ₹35 lakh.
- The loan amount must not exceed ₹25 lakh.
- The maximum carpet area allowed is 120 square meters. The scheme benefits can only be used once for a property.
PMAY-U 2.0 Categories: Meeting Diverse Housing Needs
The Pradhan Mantri Awas Yojana scheme meets different housing needs through four main categories, ensuring that families from various backgrounds can benefit from suitable housing solutions.
1. Beneficiary-Led Construction (BLC)
- Focuses on providing financial assistance to individuals for the construction of houses on their own land.
- Available for EWS/LIG/MIG households under PMAY-U 2.0.
- Subsidy provided for construction, extension, and improvement of housing.
- Financial assistance up to ₹2.5 lakh for the construction of homes.
- Ensures inclusion of basic civic infrastructure such as water, sanitation, and road connectivity.
2. Affordable Housing in Partnership (AHP)
- Encourages collaboration between Government, private sector, and housing agencies for the construction of affordable housing.
- Public-private partnerships (PPPs) are promoted for developing housing for EWS/LIG beneficiaries. Maximum funding of ₹1.5 lakh per beneficiary for construction of houses.
- Focus on providing housing to underserved and vulnerable urban populations.
- Utilizes land availability and integrates community facilities for social and physical infrastructure
3. Affordable Rental Housing Complexes (ARHCs)
- Promotes the creation of rental housing stock for urban poor and migrants in partnership with public/private entities.
- Provides housing for short-term rental purposes, especially for those unable to afford homeownership.
- Ensures access to basic amenities such as sanitation, water, health centres, and community spaces.
- Municipal services such as water supply and electricity are provided at residential project rates.
- Focus on ensuring transparency with rent details and occupancy statuses updated on unified web portal.
4. Interest Subsidy Scheme (ISS)
- Central Sector Scheme aimed at providing interest subsidies on home loans.
- Beneficiaries from EWS/LIG/MIG with annual incomes up to ₹3 lakh, ₹6 lakh, and ₹9 lakh, respectively, are eligible.
- Maximum housing loan eligible for subsidy: ₹25 lakh with house value up to ₹35 lakh.
- Subsidy of 4% on loans up to ₹8 lakh for a tenure up to 12 years.
- Total subsidy benefit of ₹1.80 lakh, with an NPV of ₹1.50 lakh.
- The subsidy is released in 5 equal instalments over the loan tenure.
- Scheme helps to expand institutional credit flow to the affordable housing sector.
Summary Table: PMAY-U 2.0 Verticals
| Category | Target Group | Key Benefit | Usage |
|---|---|---|---|
| BLC | EWS families with land | ₹2.5 lakh subsidy | Build or upgrade a house |
| AHP | EWS families | ₹2.5 lakh subsidy for affordable home purchase | Buy a home in a government-supported project |
| ARHC | Migrant workers, laborers, urban poor | Low-cost rental housing | Affordable rentals near workplaces |
| Interest Subsidy Scheme (ISS) | EWS, LIG, MIG families | Interest subsidy on home loans | Buy, build, or improve a house |
Key Features of Pradhan Mantri Awas Yojana – Urban 2.0
- Special Support for Vulnerable Groups PM Awas Yojana provides special support to women, Person with disabilities and senior citizens. This ensures that this vulnerable group can access housing and related benefits that promote equality and empowerment.
- Sustainable and Eco-Friendly Housing: The Pradhan Mantri Awas Yojana promotes the use of eco-friendly building materials and methods, such as prefabricated components. This reduces the cost of construction and has a very low impact on the environment which makes it sustainable in the long term and helps poor families to lead a normal life with happy homes.
- Digital and Transparent Processes: For this scheme our Indian government has also created online portal where people can apply for PMAY and can also track their application status and monitor the progress of ongoing projects. This makes the process more transparent and reduces delays and the beneficiaries are able to know how far the work on their house has progressed or whether they have received the subsidy amount or not.
- Affordable Housing Standards: The homes are designed in such a way that they are within the financial capacity of families from low and middle income groups. By fixing special affordable criteria, the scheme ensures that households remain within budget and the needs of eligible families are met.
- Faster Housing Through Public-Private Partnerships: Many private builders have also been included in the PMAY scheme so that housing construction and distribution can be done faster. These partnerships ensure that housing is built quickly while maintaining quality and affordability.
How to Apply for PMAY-U 2.0
You can apply for PMAY-U 2.0 either online or offline:
For the online process:
- visit → Official PMAY-U website.
- create an account → Fill in your details
- upload the required documents → Submit
- Track your application.
For offline applications:
- visit → local urban body or a Common Service Centre (CSC)
- Contact the Authority → Ask for Application Form (or Use our Form Finder tool to get application form)
Full Guide: How to Apply for Pradhan Mantri Awas Yojana 2.0 (PMAY-U)
Documents Requirement for Pradhan Mantri Awas Yojana
- 1. Applicant’s Aadhaar details (Aadhaar number, name as per Aadhaar, date of birth).
- 2. Aadhaar details of family members (Aadhaar number, name as per Aadhaar, date of birth).
- 3. Active bank account details of the applicant (account number, bank name, branch, IFSC code) linked with Aadhaar.
- 4. Income proof certificate
- 5. Caste certificate (In case of SC, ST or OBC).
- 6. Land document (In case of BLC vertical).
Funding and Implementation
This Awas Yojana scheme is funded through:
- Central Government Grants: Covers the majority of costs for housing projects.
- State and Local Government Contributions: States and urban local bodies co-fund projects and oversee local implementation.
- Private Sector Investments: Partnerships with developers expedite project completion and ensure high-quality housing.
Note: Funds are allocated based on performance and transparency, with regular audits to ensure proper utilization.
What’s New in PMAY-U 2.0?
- Focus on Affordable Rental Housing: ARHCs address the housing needs of migrant workers and urban poor, offering quality rental accommodations.
- Sustainability and Green Housing: Promotes eco-friendly construction practices, reducing waste and energy consumption.
- Technological Integration: Faster project approvals and real-time monitoring via digital platforms.
- Improved Coverage: Includes cities, towns, and urban regions identified for rapid population growth.
Differences Between PMAY 1.0 (2015) and PMAY 2.0 (2024)
| Categories | PMAY – U 1.0 (2015) | PMAY – U 2.0 (2024) |
|---|---|---|
| Income Groups | 4 groups were eligible: • EWS (up to ₹3L), • LIG (₹3–6L), • MIG 1 (₹6–12L), • MIG 2 (₹12–18L) ↑ | 3 groups are formed: • EWS (up to ₹3L), • LIG (₹3–6L), • MIG (up to ₹9L) incomes above ₹9L are not eligible ↓ |
| Beneficiary-Led Construction (BLC) | ₹1.5 Lakh/House ↓ | ₹2.5 Lakh/House ↑ |
| Affordable Housing in Partnership (AHP) | ₹1.5 Lakh/House ↓ | ₹2.5 Lakh/House + TIG (1000/Sqm/unit) ↑ |
| ‘In-situ Slum Redevelopment (ISSR) | ₹1 Lakh/House ↑ | —NA— ↓ |
| Affordable Rental Housing Complexes (ARHCs) | TIG Max 1 Lakh | TIG (5000/Sqm/unit) |
| Maximum subsidy under Interest Subsidy Scheme (CLSS-ISS) | ₹2.67 Lakh/House ↑ | ₹1.80Lakh/House ↓ |
| Subsidy Credit Method | Subsidy amount credited directly to the bank account. | Subsidy amount credited to the loan account in 5 instalments. |
| Maximum Loan Amount | NA | Maximum loan amount eligible for subsidy: ₹25 lakh. |
| Maximum Carpet Area | Based on income groups | Maximum carpet area eligible for subsidy: 120 square meters. |
| Maximum Property Value | NA | Maximum property value eligible for subsidy: ₹35 lakh. |
Check Your Subsidy Eligibility with Our Subsidy Calculator
Not sure how much subsidy you can get under PMAY-U 2.0? Use our PMAY Subsidy Calculator to estimate your potential benefits.
Calculate your subsidy and find out how much financial assistance you may qualify for under the scheme. The calculator is easy to use and will give you an accurate estimate in just a few clicks.
Official Resources
For accurate information and application guidance for PM Awas Yojana, refer to the following:
Also read: How PMAY 2.0 is Reducing Corruption in India’s Housing Scheme
FAQs on Pradhan Mantri Awas Yojana 2.0: Everything You Need to Know
Who will get the subsidy benefits?
Under the Interest Subsidy Scheme (ISS) of PM Awas Yojana – Urban 2.0, eligible beneficiaries from EWS, LIG, and MIG categories with annual incomes of up to ₹3 lakh, ₹6 lakh, and ₹9 lakh, respectively, can receive a subsidy for home loans. The loan should be sanctioned and disbursed from 01.09.2024 onwards for purchasing, repurchasing, or constructing houses.
What should be the Property Value and Loan Amount?
To qualify for the subsidy, the loan amount must be up to ₹25 lakh, and the property value should not exceed ₹35 lakh. This applies to both metro and non-metro cities.
How the subsidy will be released?
The subsidy will be provided in 5 equal yearly instalments through Direct Benefit Transfer (DBT) to the loan account, provided the loan is active, with more than 50% of the principal outstanding.
What are the eligibility criteria for Pradhan Mantri Awas Yojana?
To be eligible for the subsidy, beneficiaries must meet the following criteria:
• No ownership of a house anywhere in India, except the one being bought or built.
• No benefits from any housing schemes in the last 20 years.
• Household income should not exceed ₹9 lakh per annum.
• The home loan should not be more than ₹25 lakh.
• The house value should not exceed ₹35 lakh.
• The carpet area of the house should not exceed 120 sqm.
From which date is it applicable?
The subsidy applies to home loans that are sanctioned and disbursed on or after 01.09.2024 for eligible beneficiaries of EWS, LIG, and MIG categories.
What is the maximum amount of subsidy?
The maximum subsidy under the ISS vertical is ₹1.80 lakh.
What are the exclusions?
The subsidy is not available for land purchases or takeover loans.
Where to apply?
Beneficiaries can apply for the ISS subsidy through the Unified Web Portal of PMAY-U 2.0.
Can I claim the subsidy if the previous owner has already availed it?
No, the subsidy under the PM Awas Yojana Interest Subsidy Scheme (ISS) cannot be claimed again on the same property if it has already been availed by the previous owner. The subsidy is provided only once for a property. PLIs will verify this by checking the unified web portal before processing the claim.
Conclusion: Affordable Housing for Everyone
PMAY-U 2.0 improves upon PMAY 2015 by focusing more on affordable housing for urban poor communities like EWS, LIG, and MIG. It introduces easier access to benefits through direct benefit transfers (DBT), a higher interest subsidy, and greater public-private partnership involvement.
These changes make housing more accessible, and with rental housing options included, it helps even those who can’t yet buy a home.
