Pradhan Mantri Awas Yojana Urban 2.0

Last Updated : Sept. 5, 2026, 12:52 p.m.

Pradhan Mantri Awas Yojana Urban 2.0, or PMAY-U 2.0, provides housing support to eligible urban families belonging to the Economically Weaker Section, Low Income Group and Middle Income Group categories.

The current PMAY-U 2.0 framework replaced the earlier PMAY-Urban and Credit Linked Subsidy Scheme information featured on this page.

Under the Interest Subsidy Scheme, eligible households with annual income of up to ₹9 lakh can receive a 4% interest subsidy on the first ₹8 lakh of an eligible home loan. The maximum actual subsidy release is ₹1.80 lakh, subject to scheme conditions.

The subsidy applies to qualifying home loans sanctioned and disbursed on or after 1 September 2024 for purchasing, repurchasing or constructing a residential house.

PMAY-U 2.0 is being implemented for five years from 1 September 2024. Merely submitting an application does not guarantee assistance. Eligibility must be verified by the concerned government authority, bank, housing finance company or other participating institution.

Apply for Home Loan under PMAY

PMAY-U 2.0 AT A GLANCE

PMAY-U 2.0 INCOME CATEGORIES

Household income includes the income of the beneficiary family from all sources.

The old MIG-I and MIG-II income categories extending up to ₹18 lakh should not be used for the current Interest Subsidy Scheme.

Applicants may need to provide an income certificate, self-certificate or affidavit, along with the income records requested by the lender or implementing authority.

WHAT IS THE PMAY-U 2.0 INTEREST SUBSIDY SCHEME?

The Interest Subsidy Scheme, or ISS, is the home-loan-linked component of PMAY-U 2.0.

It is intended for eligible EWS, LIG and MIG households purchasing, repurchasing or constructing a house in an urban area.

The subsidy is calculated at 4% per annum on the first ₹8 lakh of the housing loan for a maximum eligible period of 12 years.

Important limits include:

• Annual household income must not exceed ₹9 lakh.
• The total housing loan eligible under ISS must not exceed ₹25 lakh.
• The value of the house must not exceed ₹35 lakh.
• The carpet area must not exceed 120 square metres.
• The maximum actual subsidy release is ₹1.80 lakh.
• The maximum NPV of the benefit is ₹1.50 lakh.
• The loan tenure should be more than five years for the maximum benefit.
• The home loan must have been sanctioned and disbursed on or after 1 September 2024.

HOW MUCH SUBSIDY CAN YOU GET UNDER PMAY-U 2.0?

The maximum actual interest subsidy that can be released is ₹1.80 lakh. However, every beneficiary may not receive the maximum amount.

The subsidy depends on:

• Eligible home loan amount
• Amount actually disbursed
• Loan tenure
• Principal outstanding at each subsidy stage
• Continued eligibility
• Active status of the loan
• Compliance with scheme conditions

The ₹1.80 lakh benefit is not given as cash to the borrower. It is credited to the home loan account through the participating lender, reducing the effective principal outstanding.

The borrower then repays the remaining home loan according to the lender’s applicable interest rate.

HOW IS THE PMAY-U 2.0 SUBSIDY RELEASED?

Unlike the earlier CLSS model, the current subsidy is not necessarily credited as one complete upfront payment.

The benefit is released in five annual instalments through the participating lender.

For the annual subsidy instalment to be released:

• The loan must remain active.
• More than 50% of the disbursed principal should remain outstanding.
• The borrower must continue to satisfy the scheme conditions.
• Required property and geo-tagging information must be completed.
• The lender must submit the eligible claim through the unified portal.

The borrower should receive an SMS on the registered mobile number when the subsidy is credited.

A borrower who aggressively prepays the loan and reduces the outstanding principal to 50% or less may not receive the remaining annual subsidy instalments. This should be considered before making a large prepayment during the subsidy-release period.

PMAY-U 2.0 SUBSIDY EXAMPLE

Suppose an eligible household takes a home loan of ₹20 lakh for purchasing a house valued at ₹30 lakh.

The home loan does not become a 4% loan. The lender continues charging its contracted home loan interest rate.

The government subsidy is calculated on the first ₹8 lakh and credited to the loan account, subject to the maximum benefit and annual release conditions.

PMAY-U 2.0 ELIGIBILITY

An applicant must generally meet the following conditions:

• The family must belong to the EWS, LIG or MIG category.
• Annual household income must not exceed ₹9 lakh for ISS.
• The family must reside in an eligible urban area.
• The beneficiary family must not own a pucca house anywhere in India.
• Neither the applicant nor an eligible family member should own such a house.
• The family should not have received a house or housing assistance under another Central, State, UT or local government housing scheme during the last 20 years.
• The loan should be for purchasing, repurchasing or constructing an eligible residential house.
• The home loan must have been sanctioned and disbursed on or after 1 September 2024.
• The loan amount must not exceed ₹25 lakh.
• The property value must not exceed ₹35 lakh.
• The carpet area must not exceed 120 square metres.
• The borrower must qualify for a home loan under the participating lender’s credit policy.

Eligibility for PMAY-U 2.0 does not guarantee home loan approval. The bank will independently assess income, credit history, repayment capacity and property documents.

WHO IS INCLUDED IN A BENEFICIARY FAMILY?

For PMAY-U 2.0, a beneficiary family generally consists of:

• Husband
• Wife
• Unmarried sons
• Unmarried daughters

The ownership of a pucca house by any included family member can affect eligibility.

If two family members take separate or joint loans for the same house, they are treated as one family when calculating income and subsidy eligibility.

PROPERTY OWNERSHIP REQUIREMENT

A family applying for PMAY-U 2.0 should not own a pucca house anywhere in India in the name of the applicant or any member of the beneficiary family.

A pucca house generally refers to an all-weather dwelling unit constructed with permanent materials.

The applicant must submit an undertaking or declaration confirming:

• The family does not own a pucca house.
• The household income falls within the applicable limit.
• No prohibited housing-scheme benefit has been received.
• The information provided is accurate.

Incorrect information can lead to rejection, recovery of the subsidy and legal action.

WOMEN’S OWNERSHIP UNDER PMAY-U 2.0

A house receiving Central assistance should generally be registered:

• In the name of the female head of the household; or
• Jointly in the names of the husband and wife

Where there is no adult female family member, the property may be registered in the male member’s name.

In the case of an unmarried applicant, widower, separated person or transgender person, the property can be registered in the individual applicant’s name.

The inclusion of a female family member in the registered title or sale deed may also be permitted later during the mission period, subject to the applicable State or UT procedure.

ELIGIBLE PROPERTY AND LOAN PURPOSES

The ISS benefit can be considered for:

• Purchasing a newly constructed house
• Purchasing a flat from a builder
• Purchasing an eligible resale house
• Constructing a house on an owned plot
• Purchasing a plot along with constructing a house
• Purchasing an independent house, row house or villa
• Purchasing an eligible builder-floor unit

A land-only loan without eligible house construction should not be presented as automatically qualifying for the subsidy.

The property must have the required title, valuation, construction and local-body approvals.

CARPET AREA LIMIT

The maximum carpet area under the PMAY-U 2.0 Interest Subsidy Scheme is 120 square metres.

Carpet area refers broadly to the net usable floor area inside the house. It excludes external walls, service shafts, exclusive balconies, verandas and open terraces but includes internal partition walls.

The old CLSS limits of 160 square metres for MIG-I and 200 square metres for MIG-II are not applicable to the current ISS.

PMAY-U 2.0 PROPERTY VALUE AND LOAN LIMIT

To qualify for ISS:

If the property value assessed by the lender exceeds ₹35 lakh, the loan will not qualify for the subsidy under this vertical.

The old statement that there is no limit on the PMAY home loan amount must be removed.

WHAT IF THE HOME LOAN EXCEEDS ₹25 LAKH?

A housing loan exceeding ₹25 lakh will not qualify under the current ISS eligibility limits.

Applicants should not assume that the subsidy will simply be restricted to the first ₹25 lakh of a larger loan. The current guidelines specify that only a loan of up to ₹25 lakh for a house valued up to ₹35 lakh is eligible.

The lender’s assessed property value and sanctioned loan amount will be used for determining eligibility.

PMAY-U 2.0 PROCESSING FEE

Participating lenders should not collect a processing charge from the beneficiary for the eligible housing loan portion under the scheme.

The government provides the lender with a fixed amount in place of the borrower’s processing fee.

If any additional loan amount falls outside the eligible amount, the lender may charge its normal processing fee proportionately on that additional portion.

Applicants may still need to pay other applicable expenses, including:

• Property legal-verification charges
• Technical valuation charges
• Mortgage-registration expenses
• Stamp duty
• Registration charges
• Property insurance, if selected
• Documentation or statutory charges permitted under the scheme

A nil processing fee does not mean that every property and loan-related expense is waived.

PMAY-U 2.0 FOUR VERTICALS

PMAY-U 2.0 is implemented through four verticals:

1. Beneficiary Led Construction: BLC supports eligible EWS families constructing a house on their own available land. Assistance is linked to the progress of construction.
2. Affordable Housing in Partnership: AHP supports eligible EWS beneficiaries purchasing houses developed through approved public or private housing projects.
3. Affordable Rental Housing: ARH focuses on rental housing for eligible urban poor, workers, migrants, working women and other qualifying EWS or LIG beneficiaries.
4. Interest Subsidy Scheme: ISS provides a home loan interest subsidy to eligible EWS, LIG and MIG households buying, repurchasing or constructing a house.

An applicant should choose the relevant vertical carefully because changing the selected vertical later may not be permitted.

DOCUMENTS REQUIRED FOR PMAY-U 2.0

Personal documents:

• Aadhaar number or Virtual Aadhaar ID
• PAN card
• Identity proof
• Address proof
• Recent photographs
• Registered mobile number
• Bank-account details

Family documents:

• Aadhaar details of eligible family members
• Spouse details
• Details of unmarried children
• Marital-status information
• Family income details

Income documents:

• Income certificate
• Self-certificate or affidavit
• Salary slips for salaried applicants
• Bank statements
• Form 16 or income-tax returns
• Business financial statements for self-employed applicants
• Other income evidence requested by the lender or authority

Property documents:

• Agreement to sell
• Sale deed
• Property title documents
• Approved layout or building plan
• Construction approval
• Builder documents
• Property valuation
• Carpet-area details
• Property address and PIN code
• Land ownership documents for construction cases
• RERA details where applicable

Declaration or undertaking:

• No pucca house owned by the beneficiary family
• No disqualifying housing assistance received during the previous 20 years
• Accurate annual household income
• Compliance with property and scheme conditions

HOW TO APPLY FOR PMAY-U 2.0 ONLINE

1. Visit the official PMAY-U 2.0 unified portal.
2. Select the appropriate scheme vertical.
3. Complete the eligibility assessment.
4. Enter Aadhaar and family details.
5. Provide household income and property information.
6. Enter the proposed home loan details for ISS.
7. Select participating lenders where the portal allows.
8. Upload or submit the required documents.
9. Save the generated application ID.
10. The application will be forwarded for verification.
11. The lender will separately assess home loan eligibility.
12. Track the application and subsidy status using the portal.

Submitting the application does not guarantee approval. Government authorities and participating lenders will verify the applicant, family, income, property and home loan.

HOW TO CHECK PMAY-U 2.0 APPLICATION STATUS

Applicants should keep the application ID and registered mobile number available.

Status can generally be tracked through the unified PMAY-U 2.0 portal. The applicant may also contact:

• The selected bank or housing finance company
• The concerned Urban Local Body
• The State Level Nodal Agency
• The PMAY-U helpdesk

The applicant should ensure that the mobile number linked with the application remains active because subsidy and verification updates may be sent by SMS.

CAN AN EXISTING HOME LOAN QUALIFY?

The ISS applies to eligible home loans sanctioned and disbursed on or after 1 September 2024.

A loan sanctioned or disbursed before this date does not qualify merely because PMAY-U 2.0 is now active.

The borrower and property must also satisfy all income, ownership, loan value, house value and carpet-area requirements.

WHAT HAPPENS AFTER A HOME LOAN BALANCE TRANSFER?

A beneficiary cannot claim the ISS benefit again after transferring the home loan to another lender.

If the subsidy was not claimed through the original lender, it generally cannot be newly claimed after the balance transfer.

Borrowers receiving the subsidy in annual instalments should carefully check the consequences before transferring or closing the loan.

CAN A PMAY-U 2.0 HOUSE BE SOLD?

There is a mandatory five-year lock-in condition.

Under the ISS vertical, the beneficiary should not sell or transfer the subsidised house for five years from the release of the first subsidy instalment.

Different starting points can apply under other PMAY-U 2.0 verticals, such as completion, possession, registration or allotment.

WHO IS NOT ELIGIBLE FOR PMAY-U 2.0 ISS?

An applicant may be ineligible if:

• Annual household income exceeds ₹9 lakh.
• The family owns a pucca house anywhere in India.
• The home loan exceeds ₹25 lakh.
• The assessed property value exceeds ₹35 lakh.
• Carpet area exceeds 120 square metres.
• The loan was sanctioned or disbursed before 1 September 2024.
• A disqualifying government housing benefit was received during the last 20 years.
• The same property has already received the subsidy.
• Incorrect income or ownership information is submitted.
• The loan or property does not satisfy lender requirements.
• The applicant seeks a fresh subsidy after a balance transfer.

PMAY-U 2.0 assistance is subject to verification by the concerned government authorities, Primary Lending Institution, State or UT and Urban Local Body. Submission of an application does not guarantee home loan approval or subsidy. Scheme conditions may be amended by the Government.