The Ministry of Housing and Urban Affairs (MoHUA) has announced the implementation of Pradhan Mantri Awas Yojana – Urban (PMAY-U) 2.0 from 1st September 2024, targeting the housing needs of 1 crore additional urban beneficiaries over the next five years. The revamped scheme builds on the success of the earlier PMAY-U, which has been operational since 25 June 2015.
The aim remains consistent: to provide all-weather pucca houses with basic civic amenities to eligible urban families at affordable costs, while introducing new features to improve access and affordability, particularly for the lower and middle-income segments.
PMAY-U 2.0: Four Implementation Verticals
Under the new mission, PMAY-U 2.0 is being implemented through the following four verticals:
- Beneficiary Led Construction (BLC) – Assistance for individuals to construct or enhance their own homes.
- Affordable Housing in Partnership (AHP) – Collaboration with public/private sectors to build affordable homes.
- Affordable Rental Housing (ARH) – Promoting rental housing for migrants and urban poor.
- Interest Subsidy Scheme (ISS) – New version of the earlier Credit Linked Subsidy Scheme (CLSS).
Revised Interest Subsidy (ISS) Guidelines
Under the new Interest Subsidy Scheme (ISS) vertical of PMAY-U 2.0:
- Maximum interest subsidy of ₹1.80 lakh is available to beneficiaries with annual household income up to ₹9 lakh.
- Home loans up to ₹25 lakh are eligible, provided the property value does not exceed ₹35 lakh.
- Eligible properties must have a carpet area up to 120 sqm.
- A 4.0% interest subsidy is applicable on the first ₹8 lakh of the loan, for a maximum tenure of 12 years.
- Subsidy is released in 5 equal annual instalments into the loan account, subject to more than 50% of the principal outstanding and the loan being active during the release.
Applications can be made through the official portal: https://pmay-urban.gov.in
Achievements Under Earlier CLSS Scheme
Under the now-closed CLSS vertical of the original PMAY-U, which ended in March 2022, the following was achieved:
- Total of 25,04,220 beneficiaries availed benefits.
- An impressive ₹58,885 crore was disbursed as interest subsidy.
- Implemented via Central Nodal Agencies: NHB, HUDCO, and SBI.
- Beneficiaries from EWS, LIG, and MIG categories were eligible.
Strategic Enhancements in PMAY-U 2.0
The revamped PMAY-U 2.0, according to MoS Shri Tokhan Sahu’s statement in the Lok Sabha, is built on the implementation experiences of its predecessor and incorporates strategic enhancements such as:
- Affordable rental options, addressing housing for migrant workers and urban poor.
- Reduced interest subsidy ceiling, realigned to market conditions and beneficiary categories.
- Simplified eligibility and digital access for smoother beneficiary onboarding and tracking.
PMAY-U 2.0 is expected to further strengthen India’s mission of “Housing for All”, while promoting urban equity, financial inclusion, and infrastructure development.
