The Ministry of Housing and Urban Affairs has extended and upgraded the Pradhan Mantri Awas Yojana–Urban (PMAY-U), India’s main programme for delivering affordable housing in cities and towns. The initiative now runs until 30 September 2026 and has been restructured as PMAY-U 2.0 from September 2024 to reach an additional one crore families across economically weaker, low-income and middle-income brackets.
Key Details of PMAY-U 2.0
The scheme targets families earning up to ₹9 lakh annually. Specifically, eligible beneficiaries are those earning up to ₹3 lakh per year (EWS), between ₹3 lakh and ₹6 lakh (LIG), or between ₹6 lakh and ₹9 lakh (MIG). Financial assistance of up to ₹2.50 lakh per house unit is available.
The scheme operates through four distinct pathways:
- Beneficiary-Led Construction: Families construct houses on their own land with carpets areas up to 45 square metres, receiving ₹2.5 lakh support.
- Affordable Housing in Partnership: Government or private builders construct 30–45 square metre homes for eligible families, with central and state governments sharing the ₹2.5 lakh assistance towards purchase.
- Affordable Rental Housing: Provides dignified rental accommodation for workers, migrants, street vendors and others unable to buy homes. This includes essential services like water, sewerage and sanitation.
- Interest Subsidy Scheme: Offers up to ₹1.80 lakh interest subsidy on home loans for borrowing above five years, available from 1 September 2024 onwards.
A beneficiary family includes a married couple and their unmarried children, or an unmarried adult counts as a separate household. Critically, no family member can already own a pucca house elsewhere in India. The scheme mandates that women must own or co-own properties, strengthening their financial security and decision-making role in households.
By 9 August 2026, across both PMAY-U and PMAY-U 2.0 combined, 1.25 crore houses were sanctioned with over 1 crore completed and delivered. Of houses sanctioned under PMAY-U 2.0 alone (18.38 lakh), 1 crore were allotted in women’s names or jointly.
What this means for you
If your family earns less than ₹9 lakh annually and currently lacks a permanent home, you can apply for financial assistance to either build, buy or rent a house through the scheme’s web portal. Women applicants benefit from mandatory property ownership rights. The scheme uses digital monitoring systems and geo-tagging to ensure transparency and track project completion at different construction stages, reducing delays and maintaining quality standards.