Urban 2.0

PMAY Urban 2.0: the urban housing mission from 2024 to 2029

पीएमएवाई शहरी 2.0: 2024 से 2029 की शहरी आवास योजना

Last reviewed: 11 November 2026

PMAY Urban 2.0 is the current urban phase of Pradhan Mantri Awas Yojana. It provides Central assistance so that eligible urban families can construct, purchase or rent an affordable house. The Union Cabinet approved the scheme on 9 August 2024. The official guidelines state that it will be implemented for five years from 1 September 2024, through 2029, and that it aims to support one crore additional urban poor and middle-class families. Government assistance under the scheme is ₹2.30 lakh crore.

This page explains the four verticals, the official assistance amounts, and the main eligibility rules. To see which income category you fall into, use the helper on the eligibility page. To apply, go to the official MIS — a walkthrough is on how to apply.

What PMAY Urban 2.0 is and when it runs

The scheme is implemented by the Ministry of Housing and Urban Affairs, through States, Union Territories and, for the Interest Subsidy Scheme, through Central Nodal Agencies and Primary Lending Institutions. It is a Centrally Sponsored Scheme, except the Interest Subsidy Scheme, which is a Central Sector Scheme.

Coverage includes all statutory towns as per Census 2011, towns notified after that, and areas under notified planning or development authorities (including industrial and urban development authorities entrusted with planning). Newly notified towns can be added during the mission period with the Ministry’s approval. A State or Union Territory participates after it signs a memorandum of agreement with the Ministry and formulates an affordable housing policy.

How it relates to the earlier PMAY-Urban mission

The first PMAY-Urban mission was launched on 25 June 2015. Its original period ran to March 2022 and has been extended, so that already sanctioned houses can be finished, until 30 September 2026. PMAY Urban 2.0 is the next chapter, not a simple renaming of the first mission. The verticals have been recast. In particular, the earlier Credit Linked Subsidy Scheme (CLSS) is not the same product as the new Interest Subsidy Scheme; the interest subsidy page sets out the difference.

If a house sanctioned under the earlier mission was curtailed by the Central Sanctioning and Monitoring Committee after 31 December 2023, on a State or Union Territory recommendation, that beneficiary will not be sanctioned a house again under PMAY Urban 2.0.

Who a beneficiary family is, and what a pucca house means

A beneficiary family comprises the husband, the wife, and unmarried sons and/or unmarried daughters. The family should not own a pucca house — an all-weather dwelling unit — in the applicant’s name or in the name of any family member, anywhere in India.

The official frequently asked questions define a pucca house as an all-weather dwelling whose roof and walls are made of sturdy, modern, durable materials such as burnt bricks, stones packed with cement or lime, cement concrete, timber, galvanised iron sheets, asbestos sheets or machine-made tiles, regardless of whether the floor is kutcha.

A new pucca house under PMAY Urban 2.0 must have at least two rooms, a kitchen and a toilet or bathroom, and must include basic facilities such as a kitchen, a toilet, electricity and a water connection.

A family that has been allotted a house under any housing scheme of the Central Government, a State or Union Territory government, or a local self-government in the last 20 years, in an urban or a rural area, is not eligible. If a pucca house was provided to the applicant’s parents under a previous housing scheme, the official guidelines say that applicant is to be considered only after other eligible families whose parents have not received such a benefit.

The four verticals

A family may receive a benefit under only one vertical.

Beneficiary Led Construction

This vertical is for Economically Weaker Section families who will build a new pucca house on their own available land. Enhancement, extension or renovation of an existing house is not allowed. If the family is landless, the State or Union Territory may, at its own expense, give heritable but non-transferable land rights (pattas) so that the family can become eligible.

The house should have a carpet area of at least 30 square metres and at most 45 square metres, and should conform to National Building Code safety and design standards. It must include at least two rooms, a kitchen and a toilet or bathroom. Demand is registered through the urban local body or the unified web portal, with proof of land ownership. Construction stages are geo-tagged, and instalments are linked to those stages.

Affordable Housing in Partnership

This vertical is also for EWS families. It supports ownership of a 30–45 square metre house built in partnership by a State, a city, or a public or private agency. A project may be only for EWS families or a mix of categories, but Central assistance is available only if at least 25 per cent of the houses are for the EWS category. A public-sector project should have at least 100 EWS houses, unless the Central Sanctioning and Monitoring Committee relaxes that number.

When the house is bought from a whitelisted private project, the family may receive a redeemable housing voucher. Projects should be registered under the Real Estate (Regulation and Development) Act, 2016. The official completion window is 24 to 36 months from the receipt of all statutory approvals. Allotment should follow a transparent procedure; families that include a person with disability or a senior citizen may be allotted a house on a lower floor.

A Technology Innovation Grant of ₹1,000 per square metre, up to 30 square metres of carpet area per dwelling, may be given to projects that use innovative construction technologies notified by the Ministry.

Affordable Rental Housing

This vertical is for people who need a safe rented home rather than, or before, owning one: working women, industrial workers, urban migrants, students, homeless or destitute people, and other eligible beneficiaries. The official implementation note states income criteria of EWS up to ₹3 lakh and LIG from ₹3 lakh to ₹6 lakh for this vertical.

There are two models. In the first, existing government-funded vacant houses in a city can be converted into affordable rental housing, including through a public–private partnership or a public agency. In the second, private or public agencies construct, operate and maintain rental housing. For projects that use innovative technologies, the Cabinet note describes a technology grant of ₹3,000 per square metre from the Central Government and ₹2,000 per square metre from the State or Union Territory.

Interest Subsidy Scheme

This vertical is open to EWS, LIG and MIG families. It gives an interest subsidy on a home loan that is sanctioned and disbursed on 1 September 2024 or after, for the purchase, re-purchase or construction of a house. The official rate is 4 per cent on the first ₹8 lakh of the loan, for a tenure of up to 12 years. The loan may be up to ₹25 lakh and the house value up to ₹35 lakh. Carpet area may be up to 120 square metres. The loan tenure must be more than five years.

The maximum actual subsidy is ₹1.80 lakh, with a maximum net present value of ₹1.50 lakh at a notional discount rate of 8.5 per cent. It is released in five yearly instalments into the loan account, only while the loan is active and more than half of the principal is still outstanding. If the loan is below ₹8 lakh or the tenure is below 12 years, the official frequently asked questions say the subsidy is reduced on a pro-rata basis. A full parameter table and a comparison with the earlier CLSS are on the interest subsidy page.

Government assistance and Centre–State shares

For Beneficiary Led Construction and Affordable Housing in Partnership, government assistance is ₹2.50 lakh per unit, shared as follows.

The State or Union Territory share is mandatory. A State may add a top-up. A minimum beneficiary share of 25 per cent of the house or project cost is also mandatory. States that were already contributing a higher share under the earlier urban mission are expected to continue that higher share.

Ownership in a woman’s name or a joint name

A house constructed, acquired or purchased with Central assistance should be in the name of the female head of the household, or jointly in the name of the male head and his wife. Only if there is no adult female member may the house be in a male member’s name. If the applicant is a widower, unmarried, separated, or transgender, the house is in that person’s name. If a beneficiary dies, the legal heir receives the benefit. States and Union Territories should allow a female family member’s name to be added to the title later, and should provide for exemption of additional stamp duty or registration charges in such cases.

Preferences and special focus groups

The guidelines give preference to widows, single women, persons with disabilities, senior citizens, transgenders, Scheduled Castes and Scheduled Tribes, minorities, and other weaker and vulnerable sections. Special focus is also described for Safai Karmis, street vendors identified under the PMSVANidhi scheme, artisans under the Pradhan Mantri Vishwakarma scheme, anganwadi workers, building and other construction workers, and residents of slums and chawls.

What the scheme does not cover

• A family that already owns a pucca house anywhere in India.
• A family allotted a house under a government housing scheme in the last 20 years.
• A house sanctioned under the earlier mission and curtailed after 31 December 2023, as described above.
• Enhancement or renovation of an existing house under Beneficiary Led Construction.
• A second vertical, once a benefit has been taken under one vertical.
• Under the Interest Subsidy Scheme, a second claim on the same property, or a fresh claim after a loan is transferred to another lender.

Official links, helpdesk contacts and next steps

• Apply and track: https://pmaymis.gov.in/PMAYMIS2_2024/PmayDefault.aspx
• Ministry website and guidelines: https://pmay-urban.gov.in/ and the September 2024 scheme guidelines (PDF)
• Official frequently asked questions: https://pmaymis.gov.in/PMAYMIS2_2024/PmayFAQ.aspx
• Published helpdesk (confirm on the official site): 011-23060484, 011-23063620, 011-23063567, 011-23061827; WhatsApp +91 8810389745; pmay2helpdesk[at]gmail[dot]com and pmaymis-mhupa[at]gov[dot]in

Related pages on this guide: eligibility, how to apply, documents, and interest subsidy.