Launched in June 2015, the Pradhan Mantri Awas Yojana (PMAY) is an affordable housing scheme by the Government of India with the vision of providing “housing for all”. The scheme has two components:
PMAY-U (Urban) → for urban households
PMAY-G (Gramin) → for rural households
In 2021, the government extended the scheme as PMAY-U 2.0, with fresh allocations and revised guidelines to continue supporting urban households till December 2024 (extended under Budget 2025).
This article explains eligibility, subsidy benefits, how to apply online, and state-wise details under PMAY & PMAY-U 2.0.
Since its inception, PMAY has subsidised over 90 Lakh houses. Here are the key highlights of PMAY and PMAY-U 2.0:
Launched by: Ministry of Housing & Urban Affairs (MoHUA) & Ministry of Rural Development
Objective: Provide affordable housing for all urban & rural families
Coverage: PMAY-U (Urban 2.0) and PMAY-G (Rural)
Beneficiaries: EWS, LIG, MIG-I, MIG-II households
Benefit: Interest subsidy up to ₹2.67 lakh under the Credit-Linked Subsidy Scheme (CLSS)
PMAY-U 2.0 Focus: Completion of pending urban housing projects + new approvals till 2024, with improved digital tracking
Latest Update (2025): PMAY-U 2.0 continues under the Union Budget, with additional funds allocated for affordable housing
PMAY has adopted a two-pronged approach to subsidising housing, with PMAY-U (Urban) for cities and towns, and PMAY-G (Gramin) for rural areas.
For individuals and families living in cities and towns. Focus areas under PMAY-U 2.0 include:
Beneficiary Led Construction (BLC)
Affordable Housing in Partnership (AHP)
Affordable Rental Housing (ARH)
Interest Subsidy Scheme (ISS)
The government extended PMAY-U as “PMAY-Urban 2.0” in October 2021 to complete unfinished projects and approve new urban housing till December 2024.
For rural households without a pucca home. Benefits include:
Financial assistance up to ₹70,000 - ₹1.3 Lakh per house
Convergence with schemes like MGNREGA & Swachh Bharat Mission
Applicants must meet the following conditions:
Must not own a pucca house anywhere in India.
Family should consist of husband, wife, and unmarried children.
Income categories:
|
Category |
Annual Household Income |
Eligible for CLSS Subsidy |
|
EWS |
Up to ₹3 Lakh |
Yes |
|
LIG |
₹3 to 6 Lakh |
Yes |
|
MIG-I |
₹6 to 12 Lakh |
Yes |
|
MIG-II |
₹12 to 18 Lakh |
Yes |
Female co-ownership is mandatory in EWS/LIG categories.
Should not have availed housing assistance from any other government scheme.
The Credit-Linked Subsidy Scheme (CLSS) reduces your home loan burden by lowering interest rates.
|
Category |
Max Loan Eligible |
Subsidy Rate |
Max Subsidy (Approx.) |
|---|---|---|---|
|
EWS / LIG |
Up to ₹6 Lakh |
6.5% |
₹2.67 Lakh |
|
MIG-I |
Up to ₹9 Lakh |
4% |
₹2.35 Lakh |
|
MIG-II |
Up to ₹12 Lakh |
3% |
₹2.30 Lakh |
Example: A ₹9 Lakh home loan under MIG-I sees an interest subsidy of 4%, reducing EMIs substantially over the tenure.
You can apply for a housing loan under PMAY-U 2.0 online and offline.
Step 1: Visit the official PMAY portal.
Step 2: Read the PMAY-U 2.0 guidelines and verify your eligibility.
Step 3: Click on Apply for PMAY-U 2.0.
Step 4: Fill out the application form (address, income proof, and other details).
Step 5: Enter your Aadhaar details, followed by OTP for verification.
Step 6: Submit the form. You will receive a confirmation of your application.
Step 1: Find the nearest CSC office.
Step 2: Collect a PMAY application form from the office.
Step 3: Fill out the form.
Step 4: Pay the ₹25 application fee.
Step 5: Submit the form to an authorized person of the CSC office.
Aadhaar cards of the applicant and family members
Bank passbook (Bank account should be linked to your Aadhaar)
Income certificate
A caste/community proof certificate if belonging to SC/ST/OBC
Land documents
The central government has extended PMAY-U as Urban 2.0 in Oct 2021.
Target: Completion of all sanctioned urban houses by Dec 2024.
Union Budget 2025: fresh allocation of funds to expand affordable housing support.
More focus on digital application & subsidy tracking for transparency.
The Pradhan Mantri Awas Yojana (PMAY) and its extended version, PMAY-U 2.0, continue to help millions of Indian families achieve affordable housing. With clear eligibility rules, easy online application, and state-wise beneficiary tracking, PMAY remains the most impactful housing scheme in India.
PMAY-U 2.0 is the extended version of Pradhan Mantri Awas Yojana (Urban) to complete pending housing projects and continue subsidy benefits.
EWS, LIG, MIG households without a pucca house in urban areas.
Yes, both PMAY-U 2.0 and PMAY-G continue with fresh budget allocations in 2025.
If you purchase a house under PMAY, you cannot sell the property within 5 years of buying it.
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Disclaimer
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This article is for informational purposes only and does not constitute financial or legal advice. Always consult with your financial advisor for specific guidance.
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