India’s urban landscape is evolving rapidly, with millions migrating to cities for better livelihoods, infrastructure, and modern lifestyles. Amid this transformation, housing remains one of the biggest challenges, especially for the urban poor and economically weaker sections. Recognising this critical need, the Government of India launched the Pradhan Mantri Awas Yojana (Urban)—a revolutionary step towards fulfilling the vision of “Housing for All” by 2022. Launched in 2015, the Pradhan Mantri Awas Yojana Urban Scheme is a flagship housing mission aimed at providing affordable homes to eligible beneficiaries in urban India. It not only addresses the housing shortage but also empowers individuals to own dignified living spaces.
In this blog, we will break down all the essential components of the PMAY-U scheme, covering eligibility criteria, application procedures, documents required, various verticals, and subsidy details under the Pradhan Mantri Awas Yojana Urban 2.0 Scheme. Whether you’re a first-time homebuyer or just exploring options, this guide is your one-stop information hub.
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What is Pradhan Mantri Awas Yojana Urban (PMAY-U)?
The Pradhan Mantri Awas Yojana Urban is a central government initiative under the Ministry of Housing and Urban Affairs (MoHUA). Its primary aim is to provide affordable housing to the urban poor through various interventions and subsidy-linked assistance.
Key Objectives:
- Provide pucca houses with basic amenities to all eligible urban poor by 2022
- Empower women by mandating female ownership in property documents
- Provide interest subsidies on home loans under the Credit Linked Subsidy Scheme (CLSS)
- Encourage the use of eco-friendly and disaster-resilient construction technologies.
Pradhan Mantri Awas Yojana Housing for All Urban – Vertical Overview
The PMAY Urban Scheme operates under four primary verticals:
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In-Situ Slum Redevelopment (ISSR):
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- Focuses on slum rehabilitation using land as a resource
- Public-Private Partnership (PPP) model is encouraged
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Credit Linked Subsidy Scheme (CLSS):
- Offers interest subsidies on home loans
- Most popular vertical under the scheme
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Affordable Housing in Partnership (AHP):
- Partnership with the public and private sectors to create affordable housing projects
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Beneficiary-Led Construction (BLC):
- For individuals who already own land but need financial assistance for construction or improvement
Cabinet Approves Pradhan Mantri Awas Yojana Urban 2.0 Scheme
In continuation of the success of PMAY-U, the Pradhan Mantri Awas Yojana 2.0 Urban was approved by the Union Cabinet in 2021. This extension aimed at completing the existing sanctioned projects while also launching new ones to cover the remaining eligible beneficiaries.
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Highlights of PMAY Urban 2.0 Scheme:
- Continued till December 2024
- Budget outlay: Over INR 2.03 lakh crores
- Beneficiary-centric approach with an emphasis on inclusivity and transparency
Prime Minister Awas Yojana Urban Eligibility Criteria
To apply under the PMAY Urban Scheme, an individual must meet the following eligibility norms:
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Income-Based Categories:
- Economically Weaker Section (EWS): Annual income up to ₹3 lakhs
- Low Income Group (LIG): ₹3 lakhs to ₹6 lakhs
- Middle Income Group I (MIG-I): ₹6 lakhs to ₹12 lakhs
- Middle Income Group II (MIG-II): ₹12 lakhs to ₹18 lakhs
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Other Conditions:
- The applicant or any family member should not own a pucca house anywhere in India
- Female ownership/co-ownership is mandatory for EWS and LIG categories
- The applicant should not have availed central assistance under any other housing scheme
- The property should be located in statutory towns as per Census 2011
Documents Required for Pradhan Mantri Awas Yojana Urban Scheme
Here’s a list of documents generally required while applying for PMAY Urban:
Personal Documents:
- Aadhar Card (mandatory)
- PAN Card
- Voter ID/Driving License/Passport (as ID proof)
- Address proof (Utility bills, rent agreement, passport, etc.)
- Income certificate issued by competent authority
- Passport-sized photographs
Property-Related Documents:
- Sale deed or title documents
- Building plan approval (for BLC or construction)
- Property tax receipt
- NOC from housing society or local authorities (if applicable)
Loan-Related Documents (for CLSS):
- Loan sanction letter from the bank or financial institution
- Bank account details
- Income Tax Returns/Form 16
How to Apply for Pradhan Mantri Awas Yojana Urban Online
The application process for PMAY Urban has been made user-friendly and can be done both online and offline.
Online Application:
- Visit the official website: https://pmaymis.gov.in
- Click on “Citizen Assessment.”
- Select the appropriate category: For Slum Dwellers or Benefits under Other 3 Components
- Enter Aadhar Number for verification
- Fill in the required personal, income, and housing details
- Upload relevant documents
- Submit the form and note the application/reference number for future tracking
Offline Application:
- Visit your nearest Common Service Centre (CSC)
- Fill in the PMAY application form
- Submit the necessary documents
- Pay nominal processing fees (~₹25)
Subsidy Details: Pradhan Mantri Awas Yojana Urban Credit Linked Subsidy Scheme
The Credit Linked Subsidy Scheme (CLSS) is the most significant and widely used component of the PMAY Urban Scheme.
Subsidy Benefits:
| Income Category | Annual Income Range | Interest Subsidy | Maximum Loan Amount | Maximum Subsidy Amount |
| EWS/LIG | Up to ₹6 lakhs | 6.5% | ₹6 lakhs | ₹2.67 lakhs |
| MIG-I | ₹6 – ₹12 lakhs | 4% | ₹9 lakhs | ₹2.35 lakhs |
| MIG-II | ₹12 – ₹18 lakhs | 3% | ₹12 lakhs | ₹2.30 lakhs |
Additional Notes:
- The PMAY Urban subsidy amount is directly credited to the borrower’s home loan account
- It effectively reduces EMI burden and loan tenure
Key Features of Pradhan Mantri Awas Yojana Urban Scheme Guidelines
The Pradhan Mantri Awas Yojana Urban Scheme Guidelines include:
- Targeting all urban poor and middle-income segments
- Promoting green and sustainable building technologies
- Mandatory female ownership (for certain categories)
- Transparent allotment process through Aadhaar-linked data
- Focused delivery by Urban Local Bodies (ULBs)
Impact of PMAY Urban Scheme So Far
As of 2024, the PMAY-U scheme has made a substantial impact:
- Over 1.2 crore houses sanctioned
- More than 73 lakh houses completed and delivered
- Created millions of direct and indirect jobs in construction
- Promoted women’s empowerment and inclusive home ownership
Conclusion
The PMAY is a significant milestone in India’s mission to provide “Housing for All”, creating a more inclusive and equitable urban society. Through the seamless online application process, well-defined eligibility criteria, and attractive subsidy benefits, the scheme has empowered millions of urban dwellers to realise their dream of owning a home.
With the launch of the Pradhan Mantri Awas Yojana 2.0 Urban, the government has reiterated its commitment to continue this housing revolution till 2024 and beyond. Whether you’re part of the EWS, LIG, MIG-I or MIG-II, this scheme opens a world of possibilities with financial support and dignity.
At Housiey, we are committed to guiding you on your homeownership journey by simplifying complex government schemes and offering direct access to trusted builders.
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