PMAY Urban is a housing scheme by the Government of India aimed at providing affordable and low-income housing in urban areas, especially for slum dwellers.

Who is eligible for PMAY Urban?

Eligibility includes Economically Weaker Sections (EWS), Low Income Groups (LIG), and Moderate Income Groups (MIG) based on their annual income, as well as slum dwellers.

How can one apply for PMAY Urban?

Apply by visiting the PMAY official website, registering with Aadhaar details, filling out the application form, and submitting it.

What are the advantages of PMAY Urban?

Benefits include receiving a house or plot, interest subsidies on loans, land provision for the landless, and improved socio-economic status.

How is financial assistance provided under PMAY Urban?

Financial assistance is directly transferred to beneficiaries' Aadhaar-linked bank or post office accounts to ensure transparency and reduce fraud.

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Pradhan Mantri Awas Yojana | PMAY | Eligibility, Process And Benefits

Pragya Pathak

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Updated: 07-07-2025 at 5:31 PM

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The Pradhan Mantri Awas Yojana is a flagship social program of the Government of India. It was launched in 2015 to provide shelter to all eligible beneficiaries in the urban and rural areas of the country. The government’s housing and sanitation scheme aims to fulfil the promise of housing for all Indian citizens. Under this program, the government is close to achieving the target of 3 crore houses.

What Is PM Awas Yojana Urban ?

The PMAY Awas Yojana Urban has been launched to provide low-income and affordable housing opportunities to all urban dwellers, especially those living in slums. Beneficiaries include the Economically Weaker Group (EWS), the Low Income Group (LIG) and the Moderate Income Group (MIG). All major cities of the country are included in the PM Awas Yojna and both the lower and middle income groups can benefit from this housing scheme.

Components Of The PM Awas Yojana

The PM Awas Yojana - Urban consists of 4 main components:

Redevelopment- On-site rehabilitation of slums using land as a resource and involving the private sector. This program aims to harness the potential of land in slum areas and provide formal urban facilities to slum dwellers.

Credit–linked Subsidy - Under this program, the government will provide an interest subsidy of 6.5% on housing loans for 15 years from the commencement of the loan, making housing affordable. The Net Present Value (NPV) of the interest subsidy is calculated at a discount rate of 9%.

The loan amount of 6 lakhs is applicable only for the credit-linked subsidy scheme; any amount in excess of 6 lakhs will not be subsidised. The lending institutions credit the interest subsidy directly to the beneficiaries’ accounts, resulting in a lower equated monthly instalment (EMI) and a lower loan amount.

Affordable Housing Partnership (AHP) – Affordable housing is provided to the economically weaker sections of the population in partnership with the public and private sectors. The states or union territories can plan affordable housing projects either with various agencies or in partnership with various sectors.

Extension and construction of beneficiary houses – This component will support beneficiaries who are not able to take advantage of the above three components. This mission assists families in the EWS category to construct new houses or improve existing houses on their own to support the beneficiaries.

Under this mission, families will receive central assistance of 1.50 lakh to improve their existing houses or construct new houses. Under the Pradhan Mantri Awas Yojana, the houses are built using eco-friendly technology and preference is given to old and disabled people in the allotment of first floors.

Pradhan Mantri Awas Yojana Eligibility

The following people are eligible to apply for PMAY - Urban:

The economically weaker sections which include Low Income Groups (LIG), Middle Income Groups (MIG) and EWS are considered as beneficiaries for the ‘Housing for All' programme.
EWS with an annual income of 3 lakhs or less, LIGs with 3 to 6 lakhs or less and MIGs with 6 to 18 lakhs or less are eligible to apply for this awas programme.
Slum dwellers – These include people living in poorly constructed houses that are unhygienic and have unhealthy drinking water and sanitation facilities.

How To Apply For Pradhan Mantri Awas Yojana- Urban ?

Here are the steps to apply for PMAY-U.

Steps 1- Go to the official website of Pradhan Mantri Awas Yojana.
Step 2- Click on the “Sign in” option and then click on “New User”.
Steps 3- Enter your aadhar card details, it is mandatory for enrollment.
Step 4- After entering the Aadhar details, you will be redirected to the application form where you need to fill in the details accurately.
Steps 5- Then click on "Save" and enter the captcha code.
Step 6- Then click on "Save". The application is now complete and you can print it out.

Advantages Of The PM Awas Yojana

Here are the advantages of pm awas yojana.

House: Beneficiaries under PMAY-G are given a house of their own with a minimum size of 25 square metres. Beneficiaries under PMAY-U get a house of their own with a floor area of 30 to 200 square metres, depending on the category (EWS, LIG, MIG).

Support: Beneficiaries under PMAY-U receive a central assistance of 1.5 lakh per EWS house.

Land holding: The government will provide government land or other land (public land) for landless people to build houses under PMAY.

Women empowerment: The houses/plots will be allotted in the name of the female member of the household or jointly in the name of the husband and wife of the household, thus empowering the women of the country.

Interest Subsidy: The beneficiaries of PMAY receive interest subsidy on housing loans for purchase or construction of new houses from the Primary Lending Institutions (PLIs).

Improved socio-economic status: The houses provided to the homeless families will improve their socio-economic status and quality of life.

Reduction of slums: PMAY-U will contribute to the reduction of slums in cities by providing housing to slum dwellers. This will help bring slum dwellers into the formal urban settlement.

Direct Transfer: The financial assistance under the scheme will be directly transferred to the beneficiaries electronically to their Aadhaar linked bank or post office accounts. This reduces the risk of fraud and ensures that the beneficiaries receive the funds.

Conclusion

PM Awas urban yojana is a very good scheme. It will help those people who are not able to buy houses due to inflation. Under this scheme, beneficiaries are supported in building their own homes with basic amenities to ensure a better quality of life.

If you want to know more about this scheme, click here. For any queries or grievances, call 011-23063285 or 011-23060484.2

Frequently Asked Questions