- ₹2.5 LHelp per house (BLC, AHP)Centre and state together
- ₹1.8 LMost home loan subsidy4% on the first ₹8 L
- ₹9 LHighest family income a year
- 1 croreFamilies to be helped
What is PMAY Urban 2.0?
Pradhan Mantri Awas Yojana Urban 2.0 is a housing scheme of the Ministry of Housing and Urban Affairs (MoHUA). The Union Cabinet approved it on 9 August 2024. It aims to help 1 crore poor and middle-class families in towns and cities get a pucca house in 5 years, 2024 to 2029. A pucca house means a strong, all-weather house.
The government will give ₹2,30,000 crore of help. A family can take help in one of four ways: build on its own land, buy a house in a partner project, rent a low-cost house, or get a subsidy on its home loan. It is the second phase of PMAY-Urban, which started in 2015.
- Step 1Check you qualifyUrban family, income up to ₹9 lakh, no pucca house.
- Step 2Apply on the portalOn pmay-urban.gov.in, with Aadhaar, or at your municipal office.
- Step 3Get the help₹2.5 lakh per house, or up to ₹1.8 lakh off your home loan.
Example: Ravi and Meena, Indore. Their family income is ₹5,40,000 a year, so they are LIG. They buy a 55 sq m flat worth ₹28,00,000 with a home loan of ₹20,00,000 for 20 years at 8.5%. The loan meets every ISS limit, so they get the full interest subsidy, paid into the loan account in 5 yearly parts.
- Subsidy in all
- ₹1,80,000
- Each yearly part
- ₹36,000
- Interest saved
- ₹4,88,200
The loan rate here is an example. Your bank sets the real rate. We take each instalment as arriving at the end of each loan year.
PMAY-U 2.0 components: BLC, AHP, ARH and ISS
PMAY-U 2.0 has four parts, called verticals. A family can take help under only one of them.
- Step 1BLC: build on your own landFor EWS families who own a plot. Help of ₹2.5 lakh to build a new house of 30 to 45 sq m.
- Step 2AHP: affordable housing in partnershipEWS families buy a 30 to 45 sq m house in a government or private project, with ₹2.5 lakh of help.
- Step 3ARH: affordable rental housingLow-rent homes and hostels for migrants, working women, industrial workers, students and the urban poor.
- Step 4ISS: interest subsidy on home loans4% subsidy on the first ₹8 lakh of a home loan, up to ₹1.8 lakh, for EWS, LIG and MIG.
| Part | Who it is for | Help | House size (carpet area) |
|---|---|---|---|
| BLC | EWS, with own land | ₹2.5 lakh per house | 30 to 45 sq m |
| AHP | EWS | ₹2.5 lakh per house | 30 to 45 sq m |
| ARH | EWS and LIG tenants | Paid to the builder or agency, not to you | Up to 60 sq m |
| ISS | EWS, LIG and MIG | Up to ₹1.8 lakh on a home loan | Up to 120 sq m |
Carpet area is the floor area inside the walls of the house, where you could lay a carpet. It does not include the thickness of the walls.
PMAY Urban 2.0 eligibility: who can apply?
PMAY-U 2.0 uses three income groups. The income is the yearly income of the whole family. A family here means husband, wife, and unmarried sons and daughters.
| Income group | Family income a year | Parts open to it |
|---|---|---|
| EWS (Economically Weaker Section) | Up to ₹3 lakh | BLC, AHP, ARH, ISS |
| LIG (Low Income Group) | ₹3 lakh to ₹6 lakh | ISS, ARH |
| MIG (Middle Income Group) | ₹6 lakh to ₹9 lakh | ISS |
- Yes: An EWS, LIG or MIG family with income up to ₹9 lakh a year
- Yes: Living in a town or city covered by the scheme (statutory towns and notified planning areas)
- Yes: No family member owns a pucca house anywhere in India
- Yes: The applicant and all family members have Aadhaar
- Yes: For BLC: an EWS family that owns a plot of land (or gets land rights from the state)
- No: A family that owns a pucca house anywhere in India, in any member's name
- No: A family given a house under any central, state or local government housing scheme in the last 20 years, in a town or a village
- No: A family with income above ₹9 lakh a year
- No: Families whose PMAY-U house was cancelled after 31 December 2023 on the state's advice
- No: A family that already got PMAY-Gramin help (the two are linked to stop double claims)
- No: Extending or repairing an existing house (BLC is only for a new house)
House in a woman's name: the house must be in the name of the woman head of the family, or jointly in the names of husband and wife. Only when there is no adult woman in the family can it be in a man's name. A widower, an unmarried or separated person, or a transgender person gets the house in their own name.
Who gets priority: widows, single women, persons with disabilities, senior citizens, transgender persons, SC and ST families, minorities, sanitation workers, street vendors under PM SVANidhi, artisans under PM Vishwakarma, Anganwadi workers, construction workers and people living in slums or chawls.
States can set a date by which you must have lived in that town to apply. You give a signed undertaking about your income and that you own no pucca house. A false statement can lead to legal action.
PMAY interest subsidy (ISS) 2026: 4% on home loans
The Interest Subsidy Scheme (ISS) is the home loan part of PMAY-U 2.0. The Government of India pays part of your home loan interest. It is for home loans to buy, re-buy or build a house, sanctioned and disbursed on or after 1 September 2024.
| ISS rule | Limit |
|---|---|
| Family income a year | Up to ₹9 lakh (EWS, LIG or MIG) |
| Home loan | Up to ₹25 lakh |
| House value | Up to ₹35 lakh |
| Carpet area | Up to 120 sq m |
| Interest subsidy | 4% a year on the first ₹8 lakh, for up to 12 years |
| Most subsidy paid | ₹1,80,000 (present value ₹1,50,000 at 8.5%) |
| How it is paid | 5 equal yearly instalments, up to ₹36,000 each |
| Loan tenure | More than 5 years for the full subsidy |
How the subsidy reaches you: the ministry sends each instalment to your bank or housing finance company, which credits it to your loan account. It reduces the principal (the amount you still owe). You then pay EMI on the smaller balance. You get an SMS for each credit. An instalment is paid only if the loan is still running and more than 50% of the principal is still unpaid.
Why ₹1,50,000? A 4% lower rate on ₹8,00,000 for 12 years is worth about ₹1,51,378 in today's money, at the 8.5% discount rate the ministry uses. Paid in 5 parts over the years, it adds up to ₹1,80,000.
Ravi and Meena's loan, year by year: ₹20,00,000 at 8.5% for 20 years. The EMI is ₹17,356. They keep paying the same EMI, so the subsidy shortens the loan.
| End of | Subsidy credited | Subsidy so far | Loan left, no subsidy | Loan left, with subsidy |
|---|---|---|---|---|
| Year 1 | ₹36,000 | ₹36,000 | ₹19,60,195 | ₹19,24,195 |
| Year 2 | ₹36,000 | ₹72,000 | ₹19,16,872 | ₹18,41,690 |
| Year 3 | ₹36,000 | ₹1,08,000 | ₹18,69,720 | ₹17,51,893 |
| Year 4 | ₹36,000 | ₹1,44,000 | ₹18,18,400 | ₹16,54,158 |
| Year 5 | ₹36,000 | ₹1,80,000 | ₹17,62,544 | ₹15,47,784 |
Example: What the subsidy does to their loan. Over the loan, they pay ₹21,65,552 of interest without the subsidy and ₹16,77,351 with it. The loan ends about 38 months early. If their lender lowers the EMI instead of the tenure, the saving shows up as a smaller EMI.
- Subsidy
- ₹1,80,000
- Interest saved
- ₹4,88,200
- Loan ends early by
- 38 months
A smaller loan (below ₹8 lakh) or a shorter loan gets a smaller subsidy. The lender works out the exact figure. To see the EMI on your own loan amount and rate, use the home loan EMI calculator.
ISS rules to know:
- The subsidy is given only once for a property. If the house is sold, the buyer cannot claim it again.
- If two family members take loans on the same house, they count as one family, and their incomes are added.
- If you move the loan to another lender (balance transfer), you cannot claim the subsidy again. If you never claimed it with the first lender, you cannot claim it after the transfer either.
- If the lender assesses your income or house value above the limit, the loan does not get the subsidy.
- The house is geo-tagged (photographed with its location) by the lender or by you, before the instalments are paid.
PMAY 2.0 subsidy amount: central assistance per house
Under BLC and AHP, the government help is ₹2.5 lakh per house. The Centre and the state share it, and the state share is a must. States and towns can add more help of their own. The family pays the rest of the cost.
| State or UT | Centre gives | State gives (at least) | Total |
|---|---|---|---|
| North Eastern states, Himachal Pradesh, Uttarakhand, and the UTs of Jammu and Kashmir, Puducherry and Delhi | ₹2,25,000 | ₹25,000 | ₹2,50,000 |
| Other Union Territories (without a legislature) | ₹2,50,000 | ₹0 | ₹2,50,000 |
| All other states | ₹1,50,000 | ₹1,00,000 | ₹2,50,000 |
How BLC money is paid: straight into the family's bank account, in three parts linked to the building work. The state can pay the first part from its own share so work can start early.
Example: Lakshmi, Nagpur. She earns ₹2,40,000 a year, so her family is EWS. She owns a small plot and builds a new 30 sq m house under BLC. Maharashtra follows the 60:40 pattern, so the Centre gives ₹1,50,000 and the state at least ₹1,00,000.
- Total help
- ₹2,50,000
- Centre, part 1
- ₹60,000
- Centre, last part
- ₹30,000
The BLC house must have at least two rooms, a kitchen and a toilet or bathroom. The building work is photographed with its location (geo-tagged) at each stage.
PMAY AHP and ARH: buying or renting a low-cost house
AHP (Affordable Housing in Partnership): governments, development authorities and private builders build houses of 30 to 45 sq m for EWS families. A mixed project gets help only if at least 25% of its houses are for EWS. The state sets a price ceiling per square metre. If you buy in an approved (whitelisted) private project, the help comes as a Redeemable Housing Voucher, which is cashed when you take possession. You pay a small booking amount, which is adjusted in your share. Projects using new building technology get an extra grant of ₹1,000 per sq m, for up to 30 sq m per house.
ARH (Affordable Rental Housing): this part is for people who want to rent, not own. It creates low-rent rooms, flats and dormitories for EWS and LIG tenants such as migrant workers, working women, industrial and construction workers, street vendors, students and the homeless. It works in two ways: empty government-built houses are repaired and rented out, or public and private agencies build and run new rental housing. Projects using new technology get ₹3,000 per sq m from the Centre and ₹2,000 per sq m from the state. The rent and empty units are shown on the portal and the town's website.
How to apply for PMAY Urban 2.0 online
Apply only on the official website pmay-urban.gov.in (which opens the Unified Web Portal on pmaymis.gov.in), at your municipal office (Urban Local Body), or at a Common Service Centre. Do not pay any agent, and do not use other websites that say they will get you a PMAY house.
- Step 11. Open the official siteGo to pmay-urban.gov.in and choose "Apply for PMAY-U 2.0". Read the instructions.
- Step 22. Check eligibilityPick the part (BLC, AHP, ARH or ISS), your state and income, and answer the eligibility questions.
- Step 33. Verify AadhaarEnter your Aadhaar number and the OTP sent to your Aadhaar-linked mobile.
- Step 44. Fill the formGive family, income, address and bank details, and sign the undertaking.
- Step 55. Save the application IDUse it to track your status on the portal.
- Step 66. Check by the townThe municipal office checks your details. For BLC, it checks your land and present house.
- Step 77. For ISS: the lenderYour application goes to your chosen bank or housing finance company. It sanctions the loan and claims the subsidy within 30 days of disbursement.
- Step 88. Get the helpBLC money comes in parts to your bank account. ISS instalments go into your loan account.
PMAY 2.0 documents:
| Document | Why it is needed |
|---|---|
| Aadhaar of the applicant and every family member | To confirm who you are and stop double claims |
| Bank account details | BLC money is paid by direct transfer |
| Income self-certificate or affidavit | To show your income group (EWS, LIG or MIG) |
| Signed undertaking | That no family member owns a pucca house and you took no housing scheme help in the last 20 years |
| Land ownership papers (BLC only) | To show the plot is yours |
| Approved building plan, if your state requires one | For BLC and for ISS loans to build |
| Home loan papers (ISS only) | PAN, income proof and property papers as the lender asks |
PMAY CLSS closed: old PMAY-U and PMAY-Gramin
The first PMAY-Urban started on 25 June 2015. Its home loan subsidy, the Credit Linked Subsidy Scheme (CLSS), has closed. CLSS for MIG ended on 31 March 2021, and for EWS and LIG on 31 March 2022. New applications under the old PMAY-U are not taken. It was extended only to finish houses already sanctioned. An offer of "CLSS subsidy" on a new loan today is not a real scheme offer.
| Old CLSS (EWS/LIG) | PMAY-U 2.0 ISS | |
|---|---|---|
| Status | Closed on 31 March 2022 | Open, for loans from 1 September 2024 |
| Interest subsidy | 6.5% | 4% |
| Loan amount subsidised | First ₹6 lakh | First ₹8 lakh |
| Years counted | Up to 20 | Up to 12 |
| Most subsidy | ₹2,67,280, at once | ₹1,80,000, in 5 yearly parts |
| Loan and house value limit | No limit on loan | Loan up to ₹25 lakh, house up to ₹35 lakh |
PMAY-Gramin is a different scheme. Pradhan Mantri Awas Yojana Gramin (PMAY-G) is for families in villages and is run by the Ministry of Rural Development. PMAY-U 2.0 is only for towns and cities. You can get help from only one of them, based on where you live. The two portals are linked to stop double claims. A family that owns a pucca house in a village and moves to a city cannot apply under PMAY-U 2.0.
PMAY 2.0 lock-in, sale and death of the owner
- 5-year lock-in: you cannot sell or transfer the house for 5 years. The time starts when the house is completed (BLC), when you get possession (AHP), or from the first loan disbursement (ISS).
- Adding a woman's name later: a woman family member's name can be added to the sale deed later. States are asked to waive the extra stamp duty or registration fee for this.
- Death of the owner: the legal heir gets the benefit under the scheme.
- One benefit only: a family gets help under only one part of PMAY-U 2.0, once.
PMAY Urban 2.0: strengths and limits
- Yes: ₹2.5 lakh of government help per house for EWS families under BLC and AHP
- Yes: Home loan subsidy of up to ₹1.8 lakh for incomes up to ₹9 lakh
- Yes: Free to apply online with Aadhaar, and the status can be tracked
- Yes: A rental option for people who do not want to buy
- No: Only for families with no pucca house and no housing scheme help in the last 20 years
- No: ISS only on loans up to ₹25 lakh and houses up to ₹35 lakh
- No: The subsidy comes over 5 years, not at once
- No: The house cannot be sold for 5 years
Frequently asked questions
What is PMAY Urban 2.0?
Pradhan Mantri Awas Yojana Urban 2.0 (PMAY-U 2.0) is a Government of India housing scheme for towns and cities. The Union Cabinet approved it on 9 August 2024. It aims to help 1 crore urban families build, buy or rent a house in 5 years, with government help of ₹2,30,000 crore.
Who is eligible for PMAY 2.0?
An urban family with a yearly income up to ₹9 lakh (EWS, LIG or MIG) that does not own a pucca house anywhere in India, in the name of any family member, and has not been given a house under any government housing scheme in the last 20 years.
What is the income limit for PMAY Urban 2.0?
EWS: up to ₹3 lakh a year. LIG: ₹3 lakh to ₹6 lakh. MIG: ₹6 lakh to ₹9 lakh. This is the income of the whole family: husband, wife and unmarried children.
How much subsidy is given under PMAY 2.0?
Under BLC and AHP, the government help is ₹2.5 lakh per house, shared by the Centre and the state. Under the Interest Subsidy Scheme (ISS) for home loans, the subsidy is up to ₹1.8 lakh, paid in 5 yearly instalments.
How is the PMAY interest subsidy calculated?
It is 4% a year on the first ₹8 lakh of the loan, for up to 12 years. The most paid is ₹1.8 lakh (worth ₹1.5 lakh in today's money at an 8.5% discount rate). It is paid in 5 equal yearly parts of up to ₹36,000, straight into the home loan account.
What is the loan limit for PMAY interest subsidy?
The home loan must be up to ₹25 lakh, and the house value up to ₹35 lakh. The carpet area can be up to 120 sq m. The loan must be sanctioned and disbursed on or after 1 September 2024, and be longer than 5 years for the full subsidy.
Can MIG families get PMAY 2.0 benefit?
Yes, under the Interest Subsidy Scheme only, if the family income is up to ₹9 lakh. The MIG groups of the old scheme (up to ₹18 lakh) are not part of PMAY-U 2.0. BLC and AHP houses are for EWS families.
How do I apply for PMAY Urban 2.0 online?
On the official site pmay-urban.gov.in, choose "Apply for PMAY-U 2.0". Check your eligibility, verify your Aadhaar with an OTP, fill in the form and save your application ID. You can also apply at your town's municipal office (Urban Local Body) or a Common Service Centre. For ISS, you also need a home loan from a bank or housing finance company.
What documents are needed for PMAY 2.0?
Aadhaar of the applicant and all family members, bank account details, an income self-certificate or affidavit, and an undertaking that you meet the rules (no pucca house, no past housing scheme benefit). For BLC, proof that you own the land. For ISS, the bank also asks for its usual home loan papers.
Is CLSS still available under PMAY?
No. The old Credit Linked Subsidy Scheme (CLSS) under PMAY-U closed on 31 March 2022 for EWS and LIG, and on 31 March 2021 for MIG. Home loans now get help only through the new Interest Subsidy Scheme of PMAY-U 2.0, for loans from 1 September 2024.
What is the difference between PMAY Urban and PMAY Gramin?
PMAY-Urban 2.0 is for towns and cities and is run by the Ministry of Housing and Urban Affairs. PMAY-Gramin is a separate scheme for villages, run by the Ministry of Rural Development. A family can get help from only one of them, based on where it lives.
Can I sell a house bought under PMAY 2.0?
Not for the first 5 years. The lock-in starts when the house is completed (BLC), when you get possession (AHP), or from the first home loan disbursement (ISS). The ISS subsidy is given only once for a property, so a later buyer cannot claim it again.