Don't own a house? Here's how you can receive up to ₹2.5 lakh under Pradhan Mantri Awas Yojana Urban 2.0

For urban households looking to build, buy, or rent a home, the Pradhan Mantri Awas Yojana –Urban (PMAY-U) offers different forms of support depending on their income.

The scheme, launched in June 2015, was originally meant to run until March 2022. However, its period was extended until 30 September 2026 to complete houses already sanctioned.

In September 2024, the government launched PMAY-U 2.0, the next phase of the urban housing mission, with a target of supporting 1 crore additional urban poor and middle-class families between 2024 and 2029, according to a PIB backgrounder released on Wednesday.

As per the release, PMAY-U 2.0 is open to families belonging to the Economically Weaker Section (EWS), Low Income Group (LIG), and Middle Income Group (MIG).

One of the key eligibility conditions is that the beneficiary family should not own a pucca house anywhere in India in the name of any family member. A beneficiary family includes a husband, wife, and unmarried sons and/or unmarried daughters.

PMAY-U 2.0 has four verticals, offering eligible beneficiaries different forms of housing support. However, a beneficiary can avail of benefits under only one of these four verticals.

EWS families can receive financial assistance of up to ₹ 2.5 lakh to construct a new pucca house on their own available land. The maximum carpet area of the house is 45 sq. m.

EWS beneficiaries can receive assistance towards purchasing a pucca house constructed by public or private agencies.

These houses have a carpet area of 30–45 sq. m., with central and state assistance of up to ₹ 2.5 lakh per unit towards the purchase price.

This component is meant for EWS and LIG households who need affordable rental accommodation or may not be in a position to buy or construct a house.

It covers groups such as migrants, homeless people, industrial workers, working women, construction workers, street vendors, and rickshaw pullers.

EWS, LIG, and MIG beneficiaries can get an interest subsidy on home loans sanctioned and disbursed on or after 1 September 2024.

The subsidy can be used for purchasing, repurchasing, or constructing a house. The maximum interest subsidy is ₹ 1.80 lakh for eligible loans with a tenure of more than five years.

As of 9 August 2026, 1.25 crore houses had been sanctioned under PMAY-U and PMAY-U 2.0, according to the release. More than 1 crore houses had been completed and delivered to beneficiaries, according to the release.