Pradhan Mantri Awas Yojana Urban

Scheme Introduction: A Brief Overview

Pradhan Mantri Awas Yojana is the Government of India's housing scheme that helps families own their own homes. The scheme has two parts - PMAY-Gramin for rural families and PMAY-Urban for urban families. This article covers PMAY-Urban 2.0, which is specifically for people living in cities and towns.

PMAY-Urban 2.0 was launched on 1st September 2024 with a goal to help 1 crore (10 million) urban families get their own homes in the next 5 years. The scheme provides financial assistance to economically weaker sections, low-income families, and middle-income families who do not own a permanent house anywhere in India.

The scheme works through four different options to suit different needs:

• Beneficiary Led Construction (BLC): Get ₹2.50 lakh to build your own house on your land (for EWS only)
• Affordable Housing in Partnership (AHP): Buy a ready-made house with a government subsidy (for EWS only)
• Interest Subsidy Scheme (ISS): Get up to ₹1.80 lakh subsidy on your home loan (for EWS, LIG, MIG)
• Affordable Rental Housing (ARH): Rent a house at very affordable rates (for migrant workers)

You can choose any one option based on your situation. The scheme covers all cities and towns across India. Priority is given to women, senior citizens, persons with disabilities, and families from economically weaker sections.

Scheme Benefits

The benefits of PM Awas Yojana Urban 2.0 vary as per the category of the beneficiaries, which are given as: -

For EWS Category (Beneficiary Led Construction - BLC):

• Government provides Rs 2.50 lakh total assistance (Central + State combined)
• You contribute a minimum 25% of the total house cost from your own funds
• Money transferred directly to your bank account through DBT in 3 instalments (40% + 40% + 20%)
• Build your own house on your land (30-45 sqm size)
• The house must be in the woman's name or jointly with the husband

For EWS Category (Affordable Housing in Partnership - AHP):

• The government provides Rs 2.50 lakh assistance (adjusted for the house price)
• Ready-to-move house with all facilities (water, electricity, roads, drainage)
• House size up to 60 sqm in big cities, 90 sqm in other cities
• House prices up to Rs 45 lakh maximum
• Additional ₹30,000 grant if innovative construction technology is used

For LIG/MIG Category (Interest Subsidy Scheme - ISS):

• Get an interest subsidy of up to ₹1.80 lakh on your home loan
• Your loan amount can be up to ₹25 lakh for a house worth up to ₹35 lakh
• House size up to 120 sqm allowed
• Subsidy given in 5 yearly installments directly to your loan account
• Your monthly EMI reduces significantly, or your loan tenure becomes shorter
• Zero processing fee on home loan (government pays the bank Rs 4,000)
• Applicable for EWS (income up to ₹3L), LIG (₹3-6L), MIG (₹6-9L)

For Migrant Workers & Urban Poor (Affordable Rental Housing - ARH):

• Rent a house at very affordable rates (much lower than market rent)
• Dormitory beds or individual rooms are available
• Basic facilities provided (bed, toilet, kitchen, storage)
• No need to buy a house, just pay monthly rent

Common Benefits for All:

• Priority given to women, widows, persons with disabilities, and senior citizens
• Special benefits for SC/ST, minorities, street vendors, and sanitation workers
• House built as per earthquake/flood safety standards
• Construction monitored through geo-tagging (GPS photos at each stage)
• Technical guidance provided for quality construction
• Stamp duty exemption when adding a woman's name in documents
• 5-year lock-in period (cannot sell/rent house during this time)

Eligibility Requirements

Basic Eligibility Conditions:

• Families belonging to EWS/LIG/MIG category living in urban areas covered under the scheme
• Should not own a pucca house anywhere in India (in one's own name or any family member's name)
• Should have Aadhaar/Aadhaar Virtual ID for all family members integrated in MIS
• Should not have been allotted houses under any Central/State/UT/Local Government housing scheme in last 20 years

Income Criteria (Annual Household Income):

• EWS (Economically Weaker Section): Up to ₹3 lakh per annum
• LIG (Low Income Group): ₹3 lakh to ₹6 lakh per annum
• MIG (Middle Income Group): ₹6 lakh to ₹9 lakh per annum
• States/UTs can redefine income criteria with MoHUA concurrence as per local conditions

For Beneficiary Led Construction (BLC) Vertical:

• Must belong to EWS category only
• Should own land with valid documents free from legal disputes
• Land should be suitable for house construction
• For landless: State/UT may provide heritable but non-transferable land rights (pattas)
• House construction area: Minimum 30 sqm to Maximum 45 sqm carpet area
• Must have the capacity to mobilise funds for the remaining construction cost

For Affordable Housing in Partnership (AHP) Vertical:

• Applicable for EWS category only
• House carpet area: Up to 60 sqm in Metros and 90 sqm in non-metros
• House value: Up to ₹45 lakh

For Interest Subsidy Scheme (ISS) Vertical:

• Applicable for EWS, LIG, and MIG categories
• Annual household income: Up to ₹9 lakh
• Maximum housing loan eligible: ₹25 lakh
• Maximum house value: ₹35 lakh
• Maximum carpet area: Up to 120 sqm
• Home loan tenure: More than 5 years (subsidy provided for up to 12 years tenure)
• Loan sanctioned and disbursed on or after 1st September 2024
• Property should meet affordable housing criteria and RERA compliance (if applicable)

Priority Categories:

• Widows and single women
• Persons with Disabilities (PwD)
• Senior Citizens
• Transgenders
• Scheduled Castes (SC) / Scheduled Tribes (ST)
• Minorities
• Safai Karamcharis
• Street Vendors identified under PM SVANidhi Scheme
• Artisans under Pradhan Mantri Vishwakarma Scheme
• Anganwadi workers
• Building and other construction workers
• Residents of slums and chawls

Ineligibility Criteria

• Families who own a pucca house anywhere in India (rural or urban areas)
• Families who have been allotted houses under any Central/State/UT/Local Government housing scheme in the last 20 years
• Beneficiaries whose houses were curtailed by CSMC after 31st December 2023 under the previous PMAY-U
• Applicants with an annual household income exceeding ₹9 lakh (for ISS vertical)
• Beneficiaries who have already availed a subsidy under ISS cannot take a subsidy again on the same property
• If property under ISS is sold, the new purchaser cannot avail a subsidy on that property
• Families where parents have already received housing benefits (will be considered only after first-time beneficiaries)
• Two or more family members cannot take separate loans on the same property to avail multiple subsidies
• Beneficiaries who provide false income declarations will face legal proceedings under applicable laws
• Applicants without Aadhaar/Aadhaar Virtual ID for any family member (must be obtained on priority)

Required Documents

Eligible beneficiaries must produce the following documents, as applicable to their category:

Essential Documents (Must Have):

• Aadhaar Card of all family members
• Income Certificate (from Tehsildar/Revenue Officer)
• Bank account details (passbook, cancelled cheque)
• Passport-size photos
• Address proof (Ration card/Electricity bill/Rent agreement)

For BLC (Building House):

• Land ownership documents (sale deed/title deed)
• Building plan approved by the local authority
• Property tax receipt (if applicable)

For ISS (Home Loan):

• Property documents of the house being purchased
• Sale agreement or builder-buyer agreement
• RERA registration certificate (if applicable)
• Salary slips/ITR (last 6 months)

Additional Documents (If Applicable):

• Caste Certificate (for SC/ST/OBC)
• Disability Certificate (for persons with disabilities)
• Widow Certificate (if applicable)

Steps to Apply

Application process for PM Awas Yojana Urban 2.0 varies as per the category you belong to; below we have shared the category-wise process:

For Beneficiary Led Construction (BLC) Vertical:

• Visit pmay-urban.gov.in and register online, or visit your local Urban Local Body (ULB) office
• Fill the application form with personal details, Aadhaar number, family details, and income information
• Submit required documents - land ownership proof, identity proof, address proof, income certificate
• ULB verifies your documents, land ownership, income status, and existing house condition
• ULB prepares city-wide proposal with verified beneficiary list
• State Level Appraisal Committee (SLAC) examines the proposal
• State Level Sanctioning and Monitoring Committee (SLSMC) approves at the state level
• Central Sanctioning and Monitoring Committee (CSMC) provides final approval
• You receive an SMS notification of the sanction with the approved amount
• Start house construction (30-45 sqm carpet area, two rooms, kitchen, toilet)
• Complete construction within 12 months as per NBC standards
• First instalment (40%) released after foundation/plinth geo-tagging
• Second instalment (40%) released after lintel level geo-tagging
• Final instalment (20%) released after completion of geo-tagging
• Receive a completion certificate from ULB

For Affordable Housing in Partnership (AHP) Vertical:

• Register your demand on PMAY-U unified web portal
• Provide income category, family details, and Aadhaar information
• The developer or public agency verifies your EWS eligibility
• Project gets approved through ULB → SLAC → SLSMC → CSMC
• You receive house allotment letter with unit details and payment schedule
• Sign Builder-Buyer Agreement with terms and conditions
• Make payments as per schedule (Central Assistance adjusted in total cost)
• Track construction progress through the MIS portal
• Conduct a pre-delivery inspection of your unit
• Take possession after project completion and final payment
• Receive possession certificate and house keys
• Complete property registration with a female member as owner/co-owner

For Interest Subsidy Scheme (ISS) Vertical:

• Approach the bank or Housing Finance Company empanelled as Primary Lending Institution (PLI)
• Select property (carpet area up to 120 sqm, value up to ₹35 lakh)
• Submit a home loan application with all required documents
• Mention that you want to avail the PMAY-U 2.0 ISS benefit
• PLI verifies your eligibility, income, property documents, and credit score
• Loan sanctioned with subsidy calculation (4% on first ₹8 lakh for 12 years)
• Total subsidy up to ₹1.80 lakh (NPV ₹1.50 lakh) mentioned in the sanction letter
• Loan amount disbursed (for property on/after 1st September 2024)
• PLI submits your subsidy claim to the Central Nodal Agency (CNA)
• CNA verifies the claim and forwards to the Ministry
• Ministry releases subsidy in 5 equal yearly instalments
• Each installment credited to your loan account as principal prepayment
• Your EMI reduces or your loan tenure shortens
• Repay the remaining loan through reduced EMIs
• Cannot sell property during 5-year lock-in period

For Affordable Rental Housing (ARH) Vertical:

• Check the PMAY-U portal for ARH projects in your city.
• Contact the concessionaire operating the ARH facility.
• Submit identity proof, employment proof, and income proof.
• Concessionaire verifies your eligibility as a migrant worker or urban poor.
• Get allotment of a dormitory bed or individual housing unit.
• Sign a rental agreement with the rent amount and terms.
• Pay affordable rent (lower than market rates)
• Occupy a unit with basic amenities and facilities.

Important Rules and Restrictions

• 5-Year Lock-in: Cannot sell, transfer, or rent out house for 5 years from completion/possession date
• One-time Benefit: Can avail the benefit only once in a lifetime
• Woman's Name Mandatory: House must be in woman's name (except special cases)
• Residential Use Only: The house cannot be used for commercial activities
• No False Information: Providing false documents leads to legal action and recovery of the full amount with interest
• State Share Mandatory: State must provide their share - cannot be in the form of labour/materials
• Beneficiary Contribution: You must contribute a minimum 25% of the house cost in BLC/AHP

Relevant Links

• PMAY-Urban 2.0 Official Portal
• PMAY Urban 2.0 Guidelines
• PMAY Urban 2.0 Online Application
• PMAY Urban BLC Self-Undertaking
• PMAY Urban AHP Self-Undertaking
• PMAY Urban ISS Self-Undertaking

Contact Information

• PMAY Urban Contact Number:
  • 011-23063285
  • 011-23060484
• PMAY-Urban Email: pmaymis-mhupa@gov.in