RealtyMandi news card on PMAY-Urban 2.0 sanctions reaching 18.77 lakh houses, with most homes allotted to women

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PMAY-Urban 2.0 sanctions reach 18.77 lakh houses after September 2026 CSMC meeting

Sanctions under Pradhan Mantri Awas Yojana-Urban 2.0 (PMAY-U 2.0) have reached about 18.77 lakh houses after the ninth meeting of the Central Sanctioning and Monitoring Committee (CSMC), held in New Delhi on 10 September 2026. The meeting, chaired by Satendra Singh, Secretary in the Department of Urban Development of the Ministry of Housing and Urban Affairs (MoHUA), approved about 29,000 additional houses, News On AIR reported.

What was approved

The new approvals fall under the Beneficiary-Led Construction (BLC) and Affordable Housing in Partnership (AHP) verticals and cover six states: Assam, Bihar, Gujarat, Telangana, Tripura and Uttar Pradesh. Singh urged states to ensure timely implementation and monitoring so that benefits reach eligible families.

Of the 18.77 lakh houses sanctioned so far, about 17.19 lakh, or roughly 92%, have been allotted to women, either in their own name or in joint ownership, according to reports citing the ministry. Officials expect sanctions under the scheme to cross 20 lakh soon.

How PMAY-U 2.0 works

The Union Cabinet approved PMAY-U 2.0 on 9 August 2024 to support 1 crore urban poor and middle-class families over five years, with government assistance of ₹2.30 lakh crore. Families in the economically weaker section (EWS), low-income group (LIG) and middle-income group (MIG) who do not own a pucca house anywhere in India are eligible. The annual income limits are up to ₹3 lakh for EWS, ₹6 lakh for LIG and ₹9 lakh for MIG. The scheme has four verticals:

  • BLC: financial assistance for EWS families to build a new house on land they own.
  • AHP: assistance for EWS beneficiaries buying homes built in partnership with states, cities or public and private agencies, including through redeemable housing vouchers for whitelisted private projects.
  • Affordable Rental Housing (ARH): rental homes for working women, industrial workers, urban migrants, students and others who need short-term housing.
  • Interest Subsidy Scheme (ISS): a home loan interest subsidy run as a central sector scheme.

Interest subsidy: the key terms

For home loan borrowers, the ISS is the most relevant part of the scheme. According to the official PMAY-MIS portal, households with annual income up to ₹9 lakh can get a 4% interest subsidy on the first ₹8 lakh of a home loan of up to ₹25 lakh, for a house valued at up to ₹35 lakh with a carpet area of up to 120 sq m. The subsidy applies for a tenure of up to 12 years and is capped at ₹1.80 lakh per family. It is paid in five yearly instalments into the loan account, provided the loan is active and more than half the principal is still outstanding. Only loans sanctioned and disbursed on or after 1 September 2024 qualify.

The 4% does not reduce the interest rate on the entire loan; it applies only to the eligible ₹8 lakh portion, and the subsidy is credited to the loan account rather than paid in cash.

Andhra Pradesh cancellation

Separately, the Centre has cancelled about 3.71 lakh houses sanctioned to Andhra Pradesh under the earlier PMAY-U that had not started construction, ETV Bharat reported in October 2026. That decision concerns non-starter projects from the first phase and is not part of the PMAY-U 2.0 sanctions above.

What eligible families can do

Applicants can check eligibility and apply through the official PMAY-U portal or their urban local body, and should ask their bank or housing finance company whether a loan qualifies for ISS before signing. Families still deciding between buying and renting can compare homes for rent in Lucknow and other cities, or read more housing coverage on the RealtyMandi blog.

Sources

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