PMAY Housing for All 2.0: The Four Verticals and Who Each One Suits

PMAY-Urban 2.0, the current phase of the Housing for All mission, helps urban families in four ways. BLC funds a house on your own plot, AHP subsidises a flat in an approved project, ARH offers a rental unit, and ISS subsidises the interest on a home loan. You can take benefit under only one.

If you own land and earn up to ₹3 lakh a year, BLC fits. If you earn more and are taking a home loan, ISS is your route.

Key facts

The Union Cabinet approved PMAY-U 2.0 on 9 August 2024 to help 1 crore urban families over five years, with government assistance of ₹2.30 lakh crore. By 6 August 2026, over 18.38 lakh houses had been sanctioned: 14.40 lakh under BLC, 2.48 lakh under AHP, 1.36 lakh under ISS and 13,046 under ARH, according to PIB.

Who is eligible for any vertical

• Your family (husband, wife and unmarried children) lives in an urban area covered by the scheme.
• No family member owns a pucca house anywhere in India.
• Household income is up to ₹3 lakh (EWS), ₹3–6 lakh (LIG) or ₹6–9 lakh (MIG). Our page on EWS, LIG and MIG income limits explains the bands.
• No one in the family was allotted a house under any central, state or local government housing scheme in the last 20 years.
• Every family member has Aadhaar or an Aadhaar Virtual ID.

The house must be in the name of the woman head of the household, or jointly with her husband. It can be in a man’s name only where there is no adult woman in the family, and in an individual’s own name for widowers, unmarried or separated persons and transgender persons.

Beneficiary-led construction (BLC)

BLC gives money to EWS families to build a new pucca house on land they own. States may give landless families heritable but non-transferable land rights (pattas) so they can apply. The house must have 30 to 45 sq m of carpet area, at least two rooms, a kitchen and a toilet. Extensions or repairs of an existing house are not covered.

You pay at least 25% of the house cost. Central assistance comes in three instalments of 40:40:20, linked to geo-tagged construction stages, straight into your bank account. You apply to your urban local body or on the PMAY-U 2.0 portal with proof of land ownership.

Affordable housing in partnership (AHP)

AHP is for EWS families who want to buy a flat rather than build. The same per-house assistance as BLC goes to projects built by public agencies. In whitelisted private projects, and in some open-market projects, you receive it as a Redeemable Housing Voucher. The voucher is issued in your name once occupancy is verified, and the developer redeems it.

• A project qualifies only if at least 25% of its flats are for EWS families. Public-sector projects need at least 100 EWS flats unless the central committee relaxes this.
• EWS flats are 30 to 45 sq m. The state caps their sale price per sq m.
• Projects should finish within 24 to 36 months of all approvals.
• Allotment follows a procedure approved by the state committee, with lower floors preferred for families with a disabled person or senior citizen.

LIG and MIG families may find flats in mixed AHP projects, but central assistance under AHP goes only to EWS buyers.

Affordable rental housing (ARH)

ARH is for people who need a home in the city without buying one: migrants, industrial and construction workers, working women, street vendors and other EWS or LIG families. It runs in two models:

1. Model-1 turns vacant government-funded houses into rental housing, run by public agencies or a private concessionaire.
2. Model-2 lets public or private entities build, run and maintain rental housing on their own land. Projects that use innovative building technologies receive a Technology Innovation Grant of ₹3,000 per sq m from the Centre and ₹2,000 per sq m from the state.

In Model-1, the local authority fixes the first rent after a local survey. Rent then rises by 8% every two years, with a cap of 20% in total over five years. Dormitories have 3–4 beds per hall, with up to 10 sq m of carpet area per bed. The rented unit never becomes yours.

Interest subsidy scheme (ISS)

ISS is the only vertical open to LIG and MIG families who want to own. It applies to home loans sanctioned and disbursed on or after 1 September 2024.

• Household income up to ₹9 lakh; proof is a self-certificate or affidavit.
• Loan up to ₹25 lakh, property value up to ₹35 lakh, carpet area up to 120 sq m.
• Subsidy of 4% on the first ₹8 lakh of the loan, for up to 12 years, if the loan tenure is more than five years.
• Maximum release of ₹1.80 lakh (net present value up to ₹1.50 lakh), paid in 5 equal yearly instalments into your loan account.

Our guide to PMAY payment status covers how those instalments reach your loan. Try the EMI calculator to see your repayment before and after the subsidy is credited.

Choosing a vertical: land, loan and location

Houses under BLC, AHP and ISS carry a five-year bar on sale or transfer. Under BLC it runs from completion, under AHP from completion, allotment or possession, and under ISS from release of the first subsidy instalment, according to the self-undertaking forms.

How to apply

1. Open the PMAY-U 2.0 portal (pmaymis.gov.in) and choose to apply as a beneficiary.
2. Verify with your Aadhaar number, name as per Aadhaar and OTP.
3. Fill in family, income and address details and select one vertical.
4. For ISS, pick the lenders you want the application sent to; for BLC and AHP it goes to your urban local body.
5. Submit the self-undertaking for your vertical and save the application ID.

You cannot edit the application after the final save. To follow it afterwards, see our guide to PMAY beneficiary status, and for the wider scheme family see PMAY and government housing schemes.

Frequently asked questions

What are the four verticals of PMAY-U 2.0?

Beneficiary-led construction (BLC), affordable housing in partnership (AHP), affordable rental housing (ARH) and the interest subsidy scheme (ISS).

Can I take benefit under two verticals?

No. The self-undertaking for each vertical requires you to declare that you have not applied for or taken benefit under any other vertical.

How much money does PMAY BLC give?

Up to ₹2.5 lakh per house in most states: ₹1.5 lakh from the Centre and at least ₹1 lakh from the state. The share differs in north-eastern and hill states and in union territories.

Can MIG families get PMAY 2.0?

Yes, but only through ISS, with household income up to ₹9 lakh and a loan up to ₹25 lakh.

Does affordable rental housing lead to ownership?

No. ARH units are used for rental only and are managed by the local body or a public or private entity.

When did PMAY-U 2.0 start?

The Cabinet approved it on 9 August 2024, and ISS covers loans sanctioned and disbursed from 1 September 2024.

Sources

• PMAY-U 2.0 Scheme Guidelines — MoHUA (checked 16 Sep 2026)
• Cabinet approves PMAY-Urban 2.0 — PIB (checked 16 Sep 2026)
• PMAY-U milestone and 8th CSMC meeting, 9 Aug 2026 — PIB (checked 16 Sep 2026)
• Beneficiary application user manual — PMAY-U 2.0 portal (checked 16 Sep 2026)