PM Awas Yojana (Urban): Families Earning Up to ₹9 Lakh Now Eligible for Subsidy – Here’s How to Apply

By Siddhi Jain | Jul 3, 2025, 13:51 IST

The Central Government has expanded the scope of Pradhan Mantri Awas Yojana - Urban (PMAY-U) 2.0, allowing families earning up to ₹9 lakh annually to receive financial aid for building or purchasing a house in urban areas. With a target to construct 1 crore new houses, the scheme is a major relief for the urban poor and middle-income groups struggling with housing costs.

🔹 What is PMAY-U 2.0?

Launched on June 25, 2015, by PM Narendra Modi, the scheme aims to provide affordable housing to economically weaker and middle-income families in urban India. PMAY-U 2.0, announced in the 2024 Budget, targets 1 crore urban families over the next five years.

🔹 Key Objectives of PMAY-U:

Provide affordable housing to urban poor and middle-class families.
Offer financial assistance to economically weaker sections for home construction or purchase.
Promote slum redevelopment, rental housing, and housing partnerships with private builders.

🔹 PMAY-U Main Features:

₹2.5 lakh subsidy for building a house on own land.
Interest subsidy up to ₹2.67 lakh on home loans.
Affordable rental housing for migrants and workers.
Government-built houses available at low rent.

🔹 Four Main Components of PMAY-U:

Component	Description
BLC (Beneficiary-Led Construction)	Build a house on your own land. ₹2.5 lakh aid (₹1.5 lakh from Centre), paid in 3 installments (40:40:20).
AHP (Affordable Housing in Partnership)	Government collaborates with builders to provide subsidized houses for EWS. Minimum size: 30–45 sq. m.
ARHC (Affordable Rental Housing Complex)	Rental homes for migrants, industrial workers, and urban homeless. Rent can be increased only up to 20% in 5 years.
CLSS (Credit Linked Subsidy Scheme)	Interest subsidy on home loans for EWS/LIG/MIG families with annual income from ₹3 lakh to ₹12 lakh. Max subsidy: ₹2.67 lakh.

🔹 Income Eligibility

Category	Annual Family Income
EWS (Economically Weaker Section)	Up to ₹3 lakh
LIG (Lower Income Group)	₹3 to ₹6 lakh
MIG (Middle Income Group)	₹6 to ₹9 lakh

You can apply under only one component. Those who have availed housing benefits under any government scheme in the last 20 years are not eligible.

🔹 Priority Beneficiaries

The scheme prioritizes:

Widows, single women, transgender persons
Senior citizens, differently-abled, and minorities
Street vendors under PM SVANidhi
Artisans under PM Vishwakarma
Anganwadi workers and construction laborers
Slum dwellers and identified urban poor

🔹 How to Apply for PMAY-U

📝 Step-by-Step Process:

Step 1:
Visit the official portal: https://pmaymis.gov.in
Click on “Apply for PMAY-U 2.0”

Step 2:

Choose your State
Select Income Category (EWS/LIG/MIG)
Answer eligibility questions (e.g. Do you own a pucca house?)
Fill in Aadhaar details, accept declaration, and generate OTP

Step 3:

Fill your personal and family details
Provide income proof and house ownership details
Mention years of urban residence
Upload required documents

Step 4:

Enter full address, contact information
Provide home loan details (if applicable)
Submit the application

📄 Documents Required:

Applicant's Aadhaar Card
Aadhaar of family members
Bank account details (Account No., IFSC, Bank Name)
Income certificate (PDF under 100KB)
Land documents (for BLC component)

❓ FAQs

1. How is the interest subsidy granted?
It’s directly credited to your home loan account, reducing your overall EMI.

2. When is subsidy disbursed under BLC?
Within 15 days after application approval — in three installments (40%-40%-20%).

3. Can a person benefit from both PMAY-Rural and PMAY-Urban?
No, you can only apply for one — depending on whether you reside in a rural or urban area.

4. What’s the maximum home loan eligible for subsidy?
Loan amount should be up to ₹25 lakh for subsidy benefits under CLSS.

📌 Summary

Up to ₹2.67 lakh subsidy on home loans under PMAY-U.
Families earning up to ₹9 lakh/year now eligible.
Online application open at: https://pmaymis.gov.in
Apply only if you meet the income and property ownership criteria.

A golden opportunity for urban families to fulfill their dream of owning a home. Don't miss out — apply before it's too late!