The PMAY-Urban 2.0 (PMAY-U 2.0) mission is the second phase of the “Housing for All” initiative, approved to provide financial assistance to an additional 1 crore urban families between 2024 and 2029.

This phase is specifically designed to address the needs of the urban poor and the middle class, incorporating lessons from the first phase and adding new rental housing components.

The scheme is implemented through four distinct pillars to cater to different urban needs:

1. Beneficiary-Led Construction (BLC):

   • Purpose: For families who own land and want to build a new home.

   • Assistance: Up to ₹2.5 Lakh (combined Central and State assistance).

   • House Size: Minimum 30 sq. m. and maximum 45 sq. m. carpet area.

2. Affordable Housing in Partnership (AHP):

   • Purpose: Houses built by Public or Private agencies for those without land.

   • Assistance: Central assistance of ₹2.5 Lakh per flat.

   • New Feature: Under 2.0, additional “Technology Innovation Grants” (TIG) are provided to developers using modern, green construction methods.

3. Interest Subsidy Scheme (ISS):

   • Purpose: For families taking home loans to buy or build a house.

   • Subsidy: 4% interest subvention on the first ₹8 Lakh of the loan.

   • Benefit: A maximum subsidy of ₹1.80 Lakh credited in 5 annual installments.

4. Affordable Rental Housing (ARH):

   • Purpose: Dedicated to urban migrants, industrial workers, and street vendors.

   • Models: Converts existing government-funded vacant houses into rental complexes or incentivizes private entities to build new rental housing.

Income Eligibility (2026 Guidelines)

For the Interest Subsidy Scheme (ISS) and other urban benefits, the annual household income limits are: