The Narendra Modi government started the Pradhan Mantri Awas Yojana during its first term. Under this scheme, help is given to build houses for poor people in both rural and urban areas. The central government has made many changes to this scheme from time to time. Last year, the government launched Pradhan Mantri Awas Yojana-Urban 2.0 (PMAY-U 2.0). Under this new version, the dream of owning a home for middle-class families can also come true. Let us understand the details of this scheme.
The Pradhan Mantri Awas Yojana-Urban 2.0 (PMAY-U 2.0) is a housing scheme started by the Modi government. This scheme has four main parts – Beneficiary-Led Construction (BLC), Affordable Housing in Partnership (AHP), Affordable Rental Housing (ARH), and Interest Subsidy Scheme (ISS). Under the Interest Subsidy Scheme, people who take a home loan can get a subsidy on the interest they have to pay. Let’s understand this part in an easy way.
If a person takes a home loan of up to ₹25 lakh for a house worth ₹35 lakh, they can get help from the government. In this scheme, a 4% interest subsidy is given on the first ₹8 lakh of the loan. This benefit is available for up to 12 years. The total subsidy amount will be ₹1.80 lakh. This amount will be sent to the beneficiary in five yearly installments through direct bank transfer.
Benefits of this Scheme
This scheme is for people who do not own a pucca (permanent) house anywhere in the country. People from the Economically Weaker Section (EWS), Low Income Group (LIG), and Middle Income Group (MIG) can apply. Families with an annual income up to ₹3 lakh come under EWS. Those earning between ₹3 lakh to ₹6 lakh are LIG, and those earning between ₹6 lakh to ₹9 lakh are MIG.
प्रधानमंत्री आवास योजना (शहरी) 2.0 के अंतर्गत पात्र हितग्राहियों को त्वरित लाभ प्रदान करने हेतु राज्य सरकार द्वारा विशेष अभियान चलाया जा रहा है। इस अवसर का लाभ उठाएँ और अपने पक्के घर के सपने को साकार करने के लिए आज ही ऑनलाइन आवेदन करें।https://t.co/qyRUdWnGug@PMAYUrban pic.twitter.com/nXWDQJepRv
— Pradhan Mantri Awas Yojana(Urban) – Madhya Pradesh (@pmayurbanmp) June 30, 2025
The government wants to help 1 crore families in urban areas through this scheme. These families will get money to build or buy a pucca house. If a person or family does not own any permanent house in the country, they can apply under this scheme.
To apply, people can visit the official website of the scheme: https://pmay-urban.gov.in. They can fill out the form and get the benefits directly from the government.