The Pradhan Mantri Awas Yojana - Urban (PMAY-U) was first launched on 25 June 2015 by Prime Minister Narendra Modi to help poor and middle-income families living in urban areas own a home. The scheme provides financial support from the central government to make this dream a reality.
Following the success of the first phase, PMAY Urban 2.0 was announced in the 2024 Union Budget. This second phase aims to assist one crore urban families over the next five years with financial help to either buy, build, or improve their homes. The scheme continues to prioritise affordable housing and includes provisions that ensure inclusive access to housing for all eligible families in cities and towns.
Latest updates (March 2026)
- On 23 February 2026, during the 6th meeting of the Central Sanctioning and Monitoring Committee (CSMC), the Government approved an additional 2.88 lakh houses under Pradhan Mantri Awas Yojana – Urban 2.0. This fresh approval has significantly increased the total number of sanctioned homes under the scheme.
- Women continue to be at the centre of the mission. Around 96% of the houses approved under the Beneficiary Led Construction (BLC) and Interest Subsidy Scheme (ISS) verticals have been registered in the name of the female head of the family or jointly with a woman member.
- Rental housing has also received attention. More than 12,800 affordable rental homes have been cleared for urban migrants, working women and other vulnerable groups in cities.
Comparison table of the subsidy benefits across different income groups
The Pradhan Mantri Awas Yojana - Urban 2.0 (PMAY-U 2.0) provides a standardised subsidy structure across its main income groups to simplify the application process. Unlike the previous version, the new Interest Subsidy Scheme (ISS) applies a uniform 4% interest subvention for all eligible categories.
PMAY-U 2.0 subsidy comparison table
Feature |
Economically Weaker Section (EWS) |
Low Income Group (LIG) |
Middle Income Group (MIG) |
Annual household income |
Up to Rs. 3 Lakh |
Rs. 3 lakh to Rs. 6 lakh |
Rs. 6 lakh to Rs. 9 lakh |
Interest subsidy rate |
4% per annum |
4% per annum |
4% per annum |
Max loan for subsidy |
First Rs. 8 lakh |
First Rs. 8 lakh |
First Rs. 8 lakh |
Max total subsidy |
Rs. 1.80 lakh |
Rs. 1.80 lakh |
Rs. 1.80 lakh |
Max home loan amount |
Rs. 25 lakh |
Rs. 25 lakh |
Rs. 25 lakh |
Max property value |
Rs. 35 lakh |
Rs. 35 lakh |
Rs. 35 lakh |
Max carpet area |
120 sq. m. |
120 sq. m. |
120 sq. m. |
Payment mode |
5 yearly instalments |
5 yearly instalments |
5 yearly instalments |
Key policy details for 2026
- Instalment model: The subsidy is no longer a one-time upfront credit. It is disbursed in 5 equal annual instalments of Rs. 36,000 each.
- Loan status: To receive subsequent instalments, the loan must remain active (not a Non-Performing Asset), and at least 50% of the principal must be outstanding at the time of release.
- Mandatory ownership: For all categories, the house must be registered in the name of a female head of household or under joint ownership with her.
- Property scope: The property must be located within statutory towns as per the 2011 Census or newly notified urban areas.
Central government sanctions 2.88 lakh houses under PMAY-Urban 2.0
The Central Government has given approval for more than 2.88 lakh new homes under the second phase of the Pradhan Mantri Awas Yojana – Urban. With this latest decision, the overall number of houses sanctioned under PMAY-U 2.0 has crossed 13.61 lakh, reflecting steady progress in expanding affordable housing in urban India.
The approvals were granted during the sixth meeting of the Central Sanctioning and Monitoring Committee (CSMC) held in New Delhi. Out of the 2,87,618 newly approved homes, a large share falls under the Beneficiary Led Construction (BLC) vertical with around 1.66 lakh houses. About 1.09 lakh homes have been sanctioned under Affordable Housing in Partnership (AHP), while 12,846 units have been approved under Affordable Rental Housing (ARH).
The Ministry of Housing and Urban Affairs has been actively promoting rental housing through the ARH vertical to meet the needs of migrant workers, working women and low-income urban families. In addition, three Demonstration Housing Projects have been approved in Chhattisgarh, Puducherry and Rajasthan, each consisting of 40 housing units built using modern and cost-effective technologies.
Social inclusion remains a key focus. Out of the newly sanctioned houses, more than 1.60 lakh have been allotted to women, including widows, unmarried and separated women. Eight units have been approved for transgender beneficiaries. Further, 22,581 homes have been allotted to senior citizens. In terms of social categories, 35,525 houses are meant for SC beneficiaries, 9,773 for ST beneficiaries and 82,190 for OBC beneficiaries.
Overall, under PMAY-U 2.0, nearly 96% of homes in the BLC and ISS verticals are either owned by women or jointly owned with them. Since the launch of the original urban housing mission in 2015, a total of 122.50 lakh houses have been sanctioned, out of which more than 97 lakh homes have already been completed and handed over to beneficiaries.
Secretary, MoHUA chairs 6th meeting of Central Sanctioning and Monitoring Committee under PMAY-Urban 2.0
On 23 February 2026, the 6th meeting of the Central Sanctioning and Monitoring Committee (CSMC) under PMAY-Urban 2.0 was chaired by Shri Srinivas Katikithala, Secretary, Ministry of Housing and Urban Affairs, in New Delhi. Senior officials from the Ministry, along with Mission Directors from various States and Union Territories, participated in the meeting to review progress and approve new proposals.
During this meeting, approval was granted for 2,87,618 additional houses, taking the total number of sanctioned homes under PMAY-U 2.0 to more than 13.61 lakh. The scheme continues to support families belonging to Economically Weaker Sections (EWS), Low Income Groups (LIG) and Middle-Income Groups (MIG), ensuring access to secure and affordable housing.
The newly approved houses are spread across 16 States and Union Territories, including Andhra Pradesh, Gujarat, Maharashtra, Tamil Nadu, Uttar Pradesh and West Bengal, among others. Of the total approvals, around 1.66 lakh homes fall under Beneficiary Led Construction, 1.09 lakh under Affordable Housing in Partnership and 12,846 under Affordable Rental Housing. Rental housing has been given importance to help migrants, industrial workers, working women and other vulnerable urban residents.
Three Demonstration Housing Projects were also cleared in Chhattisgarh, Puducherry and Rajasthan. These projects highlight the use of modern building technologies to improve speed, durability and quality of construction. The Secretary emphasised that housing projects should ideally be located near mass transit corridors and within city limits to make daily life more convenient for residents.
Out of the newly sanctioned homes, more than 1.60 lakh have been allotted to women. A significant number of homes have also been earmarked for senior citizens and socially disadvantaged groups such as SC, ST and OBC communities. Overall, 96% of houses under key verticals are registered in the name of women or jointly with them, underlining the scheme’s commitment to women’s empowerment and inclusive urban development.
PMAY-U 2.0 - Secretary, MoHUA chairs 5th meeting of Central Sanctioning and Monitoring Committee under PMAY-U 2.0
The Pradhan Mantri Awas Yojana – Urban 2.0 (PMAY-U 2.0) has received a fresh boost with the approval of an additional 1.41 lakh houses, taking the total number of houses sanctioned under the scheme to over 10 lakh. These approvals were granted during the 5th meeting of the Central Sanctioning and Monitoring Committee (CSMC), chaired by the Secretary, Ministry of Housing and Urban Affairs (MoHUA), on 15 October 2025. The move highlights the Government’s continued focus on achieving the goal of “Housing for All” in urban India.
The meeting, held at Sankalp Bhawan in New Delhi, saw participation from senior officials of MoHUA along with Principal Secretaries and Mission Directors from various States and Union Territories. Housing proposals from 14 States and UTs were cleared, covering regions such as Assam, Gujarat, Tamil Nadu, Rajasthan, Uttar Pradesh, and others, ensuring wide geographical coverage under the scheme.
During the discussions, States and UTs were advised to focus not only on completing houses but also on ensuring quicker occupancy. Emphasis was laid on selecting project locations with proper infrastructure, road access, and public transport so that beneficiaries can enjoy a better quality of life.
Officials also stressed the need to speed up construction, remove delays, and improve access to home loans through loan camps. Regular monitoring drives and campaigns have been encouraged to track progress, with recent initiatives helping improve geo-tagging and timely completion of houses.
PMAY-U 2.0 continues to place strong emphasis on women and vulnerable groups. A large number of houses have been sanctioned in the name of women, including widows and single women, along with allocations for senior citizens, SC, ST, OBC beneficiaries, and transgender persons. Overall, the scheme aims to provide safe, affordable, and dignified pucca housing to eligible urban families, with financial assistance of up to Rs. 2.50 lakh for households earning up to Rs. 9 lakh annually.
Verticals of PMAY-U 2.0 Scheme
To meet the varied housing needs of urban citizens, PMAY Urban 2.0 has been structured into four key verticals:
1. Interest Subsidy Scheme (ISS)
This scheme reduces the burden of housing loan repayment by offering interest subsidies. It applies to beneficiaries from Economically Weaker Sections (EWS), Low-Income Group (LIG), and Middle-Income Group (MIG) categories. The subsidy depends on income level and loan size.
2. Beneficiary-Led Construction (BLC)
BLC supports individuals from the EWS category who wish to build or improve their homes on their own land. The government releases funds in phases, based on the construction progress.
3. Affordable Housing in Partnership (AHP)
This vertical promotes collaboration between government bodies and private builders to construct large-scale affordable housing projects. A minimum of 25% of the houses in every project is set aside for EWS beneficiaries.
4. Affordable Rental Housing (ARH)
ARH focuses on providing low-cost rental homes for urban migrants and workers from lower-income backgrounds. The strategy includes:
Converting unused, government-funded housing into rental units.
Developing new rental housing projects to increase availability.
Interest Subsidy Scheme (ISS) under PMAY-U 2.0
Under the Interest Subsidy Scheme (ISS) of PMAY-U 2.0, eligible families can receive a financial subsidy to reduce their housing loan interest.
Loan eligibility
Housing loans of up to Rs. 25 lakh are covered under the scheme, with the overall property value not exceeding Rs. 35 lakh.
Subsidy details
A 4% interest subsidy is applicable on the first Rs. 8 lakh of the loan. The subsidy is paid over five years in equal instalments. The maximum benefit a family can get is Rs. 1.80 lakh, with the Net Present Value (NPV) coming to Rs. 1.50 lakh.
How it works
The subsidy is credited directly into the borrower’s loan account through Primary Lending Institutions (PLIs), thereby reducing the total outstanding loan. This lowers the monthly instalment burden, making the loan more manageable for families with limited income.
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Who is eligible for PMAY-Urban 2.0?
PMAY-U 2.0 is designed for urban families from the EWS, LIG, and MIG categories who meet specific income and housing conditions.
Eligibility criteria |
Economically Weaker Sections (EWS) |
Low-Income Group (LIG) |
Middle-Income Group (MIG) |
Annual household income (Rs.) |
Up to Rs. 3 lakh |
Rs. 3 lakh – Rs. 6 lakh |
Rs. 6 lakh – Rs. 9 lakh |
Interest subsidy (% p.a.) |
4% on the first Rs. 8 lakh of the loan |
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Maximum home loan eligible (Rs.) |
Rs. 25 lakh |
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Maximum house value (Rs.) |
Rs. 35 lakh |
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Maximum carpet area (sq. m.) |
120 sq. m. |
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Maximum benefit of interest subsidy (Rs.) |
Rs. 1.80 lakh |
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Current home ownership |
No. |
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Property location |
Statutory towns per Census 2011 or any town subsequently notified by the government. |
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Apart from financial criteria, priority is also given to widows, senior citizens, single women, transgender persons, people with disabilities, and those from SC, ST, and minority communities. Families who’ve benefited from earlier housing schemes in the past 20 years are not eligible.
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How to apply for PMAY-U 2.0 under ISS?
Follow these simple steps to apply for PMAY-U 2.0 under the Interest Subsidy Scheme (ISS):
Step 1: Visit the official PMAY-U website: pmay-urban.gov.in and click on ‘Apply for PMAY-U 2.0’.
Step 2: Read all the instructions carefully before starting your application. Keep your Aadhaar and income details ready.
Step 3: Enter your annual income and select the scheme that suits your needs (ISS, BLC, or AHP). The system will check your eligibility.
Step 4: Once eligibility is confirmed, give consent for Aadhaar verification and continue the application process by providing required details and uploading documents.
List of documents required for PMAY-U 2.0
Applicants must provide the following documents while applying for PMAY Urban 2.0:
Aadhaar card details of the applicant – Name, number, and date of birth
Aadhaar card details of family members – Name, number, and date of birth
Bank account details – Account number, branch, IFSC code (must be Aadhaar-linked)
Proof of income – Only PDF format (up to 100 KB)
- Land ownership proof – Required only under BLC vertical (PDF format up to 1 MB)
Other topics you might find interesting |
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Key takeaways for PMAY-U 2.0
Based on the latest updates for 2026, here are the essential takeaways for PMAY-U 2.0:
- Massive scale: The mission aims to assist 1 crore urban families by 2029, with a total investment exceeding ₹10 lakh crore.
- Expanded reach: Unlike the first phase, this version explicitly includes the Middle Income Group (MIG) earning up to ₹9 lakh annually, alongside EWS and LIG categories.
- Uniform interest subsidy: Eligible homeowners receive a 4% interest subsidy on the first Rs. 8 lakh of their loan, provided the property value is under Rs. 35 lakh.
- Instalment-based relief: The maximum subsidy of Rs. 1.80 lakh is now released in five annual instalments of Rs. 36,000, rather than a single upfront credit.
- Women-led ownership: To promote social equity, the scheme mandates that the house must be owned or co-owned by a female member of the family.
- Digital transparency: Applications and progress tracking are handled entirely through the PMAY-Urban 2.0 Portal, featuring Aadhaar-based verification and geo-tagging of construction sites.
- Rental focus: The inclusion of Affordable Rental Housing (ARH) specifically targets the needs of urban migrants and industrial workers who do not wish to purchase property.
- Technology driven: There is a heavy emphasis on Green Building and Global Housing Technology to ensure homes are durable, climate-resilient, and quickly constructed.
