The Pradhan Mantri Awas Yojana-Urban 2.0 (PMAY-U 2.0) is a flagship mission by the Indian government aimed at providing affordable housing for all in urban areas. Building upon the original PMAY, this upgraded scheme broadens its scope to offer financial assistance to a wider range of beneficiaries. Launched on September 1, 2024, PMAY-U 2.0 aims to address the housing needs of 1 crore urban poor and middle-class families over the next five years. The scheme is set to run until 2029.
Who Can Apply?
PMAY-U 2.0 is designed to assist families belonging to the Economically Weaker Section (EWS), Lower Income Group (LIG), and Middle Income Group (MIG) residing in urban areas. To be eligible, the beneficiary family should not own a pucca house in their name or in the name of any family member in any part of the country. A family is defined as a husband, wife, and unmarried children.
The income criteria for these categories are as follows:
- EWS: Annual household income up to ₹3 lakh
- LIG: Annual household income between ₹3 lakh and ₹6 lakh
- MIG: Annual household income between ₹6 lakh and ₹9 lakh
Preference is given to widows, single women, persons with disabilities, senior citizens, transgenders, and individuals from Scheduled Castes, Scheduled Tribes, and minority communities. Special focus is also given to sanitation workers, street vendors (identified under PMSVANidhi Scheme), artisans (under Pradhan Mantri-Vishwakarma Scheme), Anganwadi workers, construction workers, and slum dwellers.
It's important to note that applicants who have already availed benefits from any government housing scheme in the past 20 years are not eligible for PMAY-U 2.0. Furthermore, the property must be located within statutory towns as per Census 2011 or subsequently notified by the government.
What the Scheme Offers
PMAY-U 2.0 operates through four main verticals:
- Beneficiary Led Construction (BLC): Financial assistance is provided to eligible EWS families to construct new pucca houses on their own land. The houses should have a minimum carpet area of 30 sq. mt. and a maximum of 45 sq. mt.
- Affordable Housing in Partnership (AHP): Central assistance is extended to EWS beneficiaries for owning a pucca house through projects where affordable houses (30-45 sq. mt. carpet area) are constructed by public or private agencies.
- Affordable Rental Housing (ARH): This addresses the needs of urban migrants, workers, and the urban poor by providing access to dignified and affordable rental housing near their workplaces.
- Interest Subsidy Scheme (ISS): This scheme provides an interest subsidy on home loans to eligible EWS, LIG, and MIG beneficiaries. The subsidy is applicable for home loans sanctioned and disbursed on or after September 1, 2024.
Under the ISS, an interest subsidy of 4% is available on the first ₹8 lakh of the loan, with a maximum subsidy of ₹1.80 lakh. The maximum home loan amount eligible is ₹25 lakh, and the house value should not exceed ₹35 lakh. The carpet area of the house should not be more than 120 sq. mt. The subsidy is released in five yearly installments, provided the loan is active and more than 50% of the principal is outstanding.
PMAY-U 2.0 also incorporates geo-tagging to monitor the construction progress of individual houses and AHP projects. For AHP projects, geo-tagging is done at five construction stages: layout, foundation/plinth, superstructure, finishing, and completion.
With a total investment of ₹10 lakh crore and central assistance of up to ₹2.50 lakh per unit, PMAY-U 2.0 aims to provide a better quality of life for millions of urban families by ensuring access to safe and affordable housing.
