A guide to PMAY-Urban 2.0: Affordable housing for urban India

For many urban families, owning a home is more than a life goal. It is the comfort of having a permanent address, along with the sense of security, prestige and pride that it brings. Yet, in many cities, accessibility and affordability remains a challenge due to increasing property prices. This is where Pradhan Mantri Awas Yojana – Urban 2.0 (PMAY-U 2.0) comes in, helping eligible families move closer to homeownership.

PMAY-U 2.0 carries forward the idea that homeownership should be within reach for more urban families. It has been launched with an aim to provide assistance to one crore eligible urban families, and is built around inclusion and easier access, specifically for those who do not own a permanent home. By offering interest subsidy support, the scheme helps reduce the cost of borrowing and makes monthly repayments more manageable, allowing families to transition from planning to owning with confidence.

Strengthening the urban housing framework with PMAY-U 2.0
Interested and eligible applicants can apply for a home loan with a lender offering PMAY-U 2.0 benefits or register on the Unified Web Portal of PMAY 2.0, launched by the Ministry of Housing and Urban Affairs.

While meeting the eligibility criteria is an important first step to avail of benefits under PMAY-U 2.0, beneficiaries will be identified based on preference categories outlined in the official guidelines.

PMAY Urban 2.0 Interest Subsidy Scheme (ISS)
A key component of PMAY-U 2.0 is the Interest Subsidy Scheme (ISS). Under this vertical, eligible homebuyers can benefit from an interest subsidy of up to Rs 1.80 Lakh on their housing loan. This reduces the effective interest outgo and makes monthly repayments more manageable. It must be noted that this subsidy will be provided on home loans that have been sanctioned and disbursed after September 1, 2024, to eligible beneficiaries.

Interest Subsidy Scheme benefits with Sambhav Home Loans from Bajaj Housing Finance Limited
Eligible applicants can avail of PMAY-U 2.0 benefits while applying for housing loans. Homebuyers opting for Sambhav Home Loans with Bajaj Housing Finance Limited may also benefit from PMAY-U 2.0 and the Interest Subsidy Scheme. With the vision to make homeownership accessible to all, Sambhav Home Loan by Bajaj Housing Finance Limited is tailored to support the unorganised sector’s homebuyers, including micro-entrepreneurs and low-income households. It caters to individuals who receive cash-based income, operate small-scale businesses, and those who may not have filed an ITR. You can apply for a Sambhav Home Loan by submitting an online application or visiting your nearest Bajaj Housing Finance Limited branch.

Eligibility criteria for PMAY-U 2.0
Eligibility under the PMAY-U 2.0 scheme is determined by household income and homeownership status:

• A beneficiary household can comprise a husband, wife, and unmarried children
  
• The beneficiary household must not own a pucca house, or a permanent all-weather dwelling, anywhere in India
  
• Eligibility is assessed based on annual household income:
  

1. Economically Weaker Section (EWS) – Families with an annual household income of up to Rs 3 Lakh
2. Low Income Group (LIG) – Families with an annual household income between Rs 3 Lakh and Rs 6 Lakh
3. Middle Income Group (MIG) – Families with an annual household income between Rs 6 Lakh and Rs 9 Lakh

• All members of the beneficiary household must have an Aadhaar Card or a valid Virtual ID linked to their personal details for verification
  

Additionally, to be eligible for ISS vertical, the following criteria need to be met:

• Home loans of up to Rs 25 Lakh can benefit from the subsidy
• The property price should not exceed Rs 35 Lakh
• Eligible homes can have a carpet area of up to 120 sq m
• The property must be retained for five years from the first loan disbursal and cannot be sold or transferred during this time

It is advisable to refer to the official website of PMAY-U 2.0 for the latest updates.

As urban India grows, enabling families to own a home remains a key priority, supporting a stronger foundation for families and communities. PMAY-U 2.0 supports this goal by offering interest subsidy benefits that can reduce the cost of a housing loan and make monthly EMIs more manageable for eligible homebuyers.

Backed by a clear eligibility framework and a transparent application process, the scheme also improves ease of access for households that need it the most. Together, these measures strengthen the government’s focus on inclusive and sustainable urban development.

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