Recently, the Union Cabinet approved PMAY-U 2.0 .
Objective PMAY- U2.0
- The scheme aims to provide financial assistance to one crore urban poor and middle-class families for constructing, purchasing, or renting houses at affordable costs.
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About PMAY-U2.0

- PMAY-U refers to Pradhan Mantri Awas Yojana (Urban)
- Nodal Agency: Ministry of Housing and Urban Affairs
- It is a major initiative by the Union government to provide all-weather pucca houses to eligible beneficiaries in urban areas.
- Achievements: 1.18 crore houses have been sanctioned under PMAY-U, with over 85.5 lakh houses already constructed and delivered.
- Eligibility Criteria
- Target Segments: Families belonging to EWS, LIG, and Middle Income Group segments with no ‘pucca’ house anywhere in the country are eligible.
- Coverage Area: The scheme covers all statutory towns as per Census 2011 and subsequently notified towns, including Notified Planning Areas, and regions under various Urban Development Authorities.
- Financial Assistance and Investment
- Assistance to Urban Poor: Financial assistance will be provided to urban poor through States and Union Territories over the next five years.
- Subsidy and Investment: The scheme includes a government subsidy of ₹2.30 lakh crore, contributing to a total investment of ₹10 lakh crore.
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Credit Risk Guarantee Fund
- Fund Increase: The Credit Risk Guarantee Fund Trust’s corpus has been increased from ₹1,000 crore to ₹3,000 crore.
- Objective: By enhancing the Credit Risk Guarantee Fund, the government aims to boost affordable housing initiatives under PMAY-U.
- This will likely increase homeownership rates among low-income segments of the population.
- Beneficiaries: The fund will benefit the Economically Weaker Section (EWS) and Low Income Group (LIG) segments by providing credit risk guarantees on affordable housing loans.
- Fund Management Transfer: Management of the Credit Risk Guarantee Fund will be transferred from the National Housing Bank to the National Credit Guarantee Company.
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