The Pradhan Mantri Awas Yojana Urban 2.0 (PMAY-U 2.0) is a flagship housing initiative by the Government of India, launched on 17th September 2024, after the success of the original PMAY scheme introduced in 2015. Implemented for five years starting from 1st September 2024, the scheme continues the vision of “Housing for All” in urban areas, with a renewed focus on sustainable construction, women’s empowerment, and inclusive housing.
With a total outlay of ₹2.30 lakh crore for urban housing, PMAY-U 2.0 aims to provide one crore additional pucca houses to the urban poor and middle-class families, while also integrating with other government programs like the PM Surya Ghar: Muft Bijli Yojana to ensure holistic benefits.
Objectives & Purpose of PMAY-U 2.0
The scheme is designed to address urban housing shortages and uplift living standards by ensuring affordable housing solutions across income categories.
Core Objectives:
- Providing Pucca Houses: Deliver permanent houses to an additional one crore families in urban areas.
- Financial Support: Extend subsidy and financial assistance of up to ₹2.50 lakh per household.
- Affordable Housing Solutions: Offer interest subsidies and flexible loan terms for EWS, LIG, and MIG families.
- Special Facilities: Establish hostels for working women to meet urban accommodation needs.
- Convergence with Other Schemes: Link housing beneficiaries with welfare schemes like PM Surya Ghar: Muft Bijli Yojana.
- Prioritisation of Special Focus Groups: PMAY-U 2.0 ensures that vulnerable sections such as Scheduled Castes (SC), Scheduled Tribes (ST), women-led households, and minorities (as officially recognized under government guidelines) are given priority in housing allocation.
Financial Assistance & Budgetary Provisions
The financial design of PMAY-U 2.0 provides both direct subsidies and loan-linked benefits.
- Urban Component Allocation: ₹2.30 lakh crore
- Overall PMAY Budget (Urban + Rural): ₹3,06,137 crore
- Housing Target: 3 crore new houses under PMAY, including one crore in urban areas
Subsidy & Loan Benefits under PMAY-U 2.0
The scheme provides central assistance for purchase, construction, or plot + construction under affordable housing provisions.
- Interest Subsidy: 4% on housing loans
- Subsidy Cap: Up to ₹1.8 lakh per beneficiary
- Loan Eligibility: Home Loans up to ₹25 lakh qualify for a subsidy
- House Value Cap: Maximum ₹35 lakh
- Subsidy Calculation: Net Present Value (NPV) at 8.5%
- Disbursement: Released in five annual instalments
- Subsidy Period: Spread over a maximum tenure of 12 years
Subsidy Structure by Income Group
| Feature | Economically Weaker Section (EWS) | Low-Income Group (LIG) | Middle-Income Group (MIG) |
|---|---|---|---|
| Annual Household Income | Up to ₹3 lakh p.a. | Up to ₹6 lakh p.a. | Up to ₹9 lakh p.a. |
| Interest Subsidy (% p.a.) | 4% on the first ₹8 lakh of the loan for a tenure up to 12 years | 4% on the first ₹8 lakh of the loan for a tenure up to 12 years | 4% on the first ₹8 lakh of the loan for a tenure up to 12 years |
| Maximum Housing Loan Eligible for Subsidy | ₹25 lakh | ₹25 lakh | ₹25 lakh |
| Maximum House Value | ₹35 lakh | ₹35 lakh | ₹35 lakh |
| Minimum Carpet Area | 30 sqm | 30 sqm | 30 sqm |
| Maximum Carpet Area | 45 sqm | 120 sqm | 120 sqm |
| Maximum Interest Subsidy Amount | ₹1.80 lakh | ₹1.80 lakh | ₹1.80 lakh¸ |
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Eligibility Criteria for PMAY-U 2.0
To qualify, applicants must meet strict guidelines:
- The family should not own a pucca house anywhere in India.
- Applicants must fall under EWS, LIG, or MIG income groups.
- Applicants must be permanent residents of India.
- Female ownership is mandatory: property must be registered in the name of a female member or jointly. In the absence of an adult female member, exceptions are allowed.
- Layout plans must be approved as per State/UT guidelines.
- The subsidy will only be granted if the housing loan is active with more than 50% outstanding principal.
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Documents Required for Application
Applicants need to furnish the following documents:
- Aadhaar card of the applicant and family members
- An active bank account linked with Aadhaar
- Income certificate
- Caste certificate (if applicable)
- Land/property ownership documents (if applicable)
- Two passport-size photographs
How to Apply for PMAY-U 2.0
The scheme allows both online and offline applications.
PMAY-U 2.0 Online Application Process:
- Visit the official website: https://pmay-urban.gov.in
- Click on “Apply for PMAY-U 2.0” on the homepage
- Enter Aadhaar details for verification
- Fill in applicant, family, and income details
- Upload required documents
- Submit and track application status online
PMAY-U 2.0 Offline Application Process:
- Visit a bank or Housing Finance Company (HFC) that is empanelled.
- Fill in the PMAY-U 2.0 form and attach the necessary documents.
- Submit for verification and loan processing.
- Angikaar 2025 Campaign: Accelerating PMAY-U 2.0
The Ministry of Housing and Urban Affairs launched Angikaar 2025 on 4th September 2025 to fast-track the implementation of PMAY-U 2.0.
Key Features:
- Duration: 4th September – 31st October 2025
- Coverage: 5,000+ Urban Local Bodies (ULBs)
- Objectives: Increase awareness, speed up application verification, and promote completion of sanctioned houses
- Community Outreach: Door-to-door campaigns, camps, loan melas, cultural events
- Special Events:
PMAY-U Awas Diwas on 17th September 2025, marking the scheme’s first anniversary
PM Awas Mela—Shehri in two phases: 17th–27th September and 16th–31st October 2025
This campaign supports last-mile beneficiary outreach and strengthens the role of Jan Bhagidari (people’s participation).
Conclusion
The Pradhan Mantri Awas Yojana – Urban 2.0 is a transformative step towards inclusive housing in India’s urban areas. By combining financial subsidies, flexible loan terms, mandatory female ownership, and convergence with green energy schemes, PMAY-U 2.0 ensures that millions of urban households can achieve the dream of owning a pucca house. With strong outreach campaigns like Angikaar 2025, the scheme emphasizes last-mile delivery and active citizen participation.
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