Pradhan Mantri Awas Yojana Urban 2026 Update: Sanctions, Subsidy Rules and Budget Numbers

The 7th meeting of the Central Sanctioning and Monitoring Committee (CSMC) under PMAY-Urban 2.0 sanctioned over 2.13 lakh additional houses on June 17, 2026, taking the total number of sanctions under the programme beyond 16 lakh. Meanwhile, the original PMAY-Urban mission had been extended only until September 30, 2026, to complete houses already sanctioned under the first phase. That deadline has now passed, making PMAY-U 2.0 the key programme for understanding current urban housing assistance.

This update covers the latest sanctions, eligibility conditions, interest subsidy rules and Budget 2026-27 figures, along with what applicants should check before applying.

Where PMAY-Urban stands after the June 2026 sanctions

The June meeting was chaired by MoHUA Secretary Srinivas Katikithala in New Delhi. Of the 2.13 lakh houses approved, 1.89 lakh were under Beneficiary-Led Construction (BLC) and 23,602 under Affordable Housing in Partnership (AHP). The houses are spread across 16 states. Cumulative sanctions under PMAY-U 2.0 reached 16.13 lakh, and the ministry reported that 97% were allotted in the name of the female head of the family.

Across both phases, the Ministry of Housing and Urban Affairs told Parliament that 127.68 lakh houses had been sanctioned and 99.07 lakh completed as of July 13, 2026. Other government-linked summaries report slightly different totals for different dates, so the cut-off date should always be checked before figures are reused.

The committee also discussed faster construction, tighter project monitoring and housing near mass transit corridors. These are stated priorities rather than changes to the scheme’s eligibility rules.

What PMAY-U 2.0 offers

PMAY-U 2.0 was launched on September 1, 2024, to support one crore additional urban families over five years. The programme envisages ₹10 lakh crore in investment and ₹2.30 lakh crore in government assistance. It operates through four verticals: Beneficiary-Led Construction (BLC), Affordable Housing in Partnership (AHP), Affordable Rental Housing (ARH) and the Interest Subsidy Scheme (ISS).

Central assistance under BLC and AHP is ₹2.50 lakh per unit, subject to the applicable scheme conditions. The different verticals serve different housing needs, from constructing a home on eligible land to purchasing an affordable unit or accessing rental accommodation. 

Read More: PMAY-U 2.0 application process, eligibility and housing assistance.

For homebuyers taking a loan, the Interest Subsidy Scheme is particularly relevant. Under the stated terms, eligible borrowers can receive a 4% interest subsidy on the first ₹8 lakh of a qualifying home loan, for a period of up to 12 years. The loan must have been sanctioned and disbursed on or after September 1, 2024, and all other eligibility conditions must be met.

Some lender websites still display the older Credit Linked Subsidy Scheme (CLSS), which had different subsidy rates and loan limits. Applicants should distinguish those earlier provisions from PMAY-U 2.0. Borrowers who are unsure whether a loan qualifies can also read PMAY subsidy on an existing home loan.

Who is eligible for PMAY-Urban in 2026?

PMAY-U 2.0 targets eligible urban families in the Economically Weaker Section (EWS), Low Income Group (LIG) and Middle Income Group (MIG) categories. The household income limits are up to ₹3 lakh a year for EWS, ₹3 lakh to ₹6 lakh for LIG and ₹6 lakh to ₹9 lakh for MIG.

Families must meet the scheme’s housing ownership and other eligibility conditions. For the Interest Subsidy Scheme, the home loan cannot exceed ₹25 lakh and the house value cannot exceed ₹35 lakh, subject to the scheme’s detailed rules and the lender’s assessment.

The property value ceiling is especially important in higher-priced cities, where some homes may exceed the permitted limit. Applicants should confirm the assessed property value and their eligibility before relying on the subsidy in their purchase budget.

State-level housing policies may also affect the options available to eligible families. For example, AquireAcres has reported on the Uttar Pradesh Affordable Housing Policy and its connection with PMAY-U 2.0, which covers the state’s approach to affordable housing and rental accommodation.

How to apply and track progress

Applications can be submitted through the official PMAY-Urban portal or with assistance from the local Urban Local Body (ULB), depending on the scheme vertical. Applicants should use the official portal at pmay-urban.gov.in and check the current application instructions before submitting details.

For the Interest Subsidy Scheme, the subsidy is credited to the beneficiary’s home loan account through the prescribed process. Lenders may request identity documents, income proof, bank details and property-related information. The precise documentation depends on the application and the applicable scheme requirements.

Applicants should retain their application number and check progress through the official portal or their ULB. Since portal layouts and application procedures can change, it is best to follow the latest instructions rather than rely on screenshots or older step-by-step guides.

Budget 2026-27: A lower allocation

The allocation for PMAY-Urban fell from ₹19,794 crore to ₹18,625 crore, a reduction of nearly 5.9%. The Interest Subsidy Scheme provision also declined from ₹3,500 crore in 2025-26 to ₹3,000 crore.

Budget figures need to be compared on a like-for-like basis. Some summaries present the ISS provision separately, while others discuss it alongside the wider PMAY-Urban allocation. The official Expenditure Budget should therefore be consulted before these amounts are added together or interpreted as a single total.

PRS Legislative Research has noted that PMAY-Urban has underspent its budget allocations by an average of 34%. This provides context for the difference between the amount budgeted and the amount spent, but the underspending figure alone does not establish the reason for the latest allocation change.

What the update means for applicants

Home-loan buyers: Check that the loan amount is within ₹25 lakh, the property value is within ₹35 lakh and the loan was sanctioned and disbursed on or after September 1, 2024. Confirm with the lender that it processes claims under the current Interest Subsidy Scheme.

Families planning to build a home: Beneficiary-Led Construction may be relevant for eligible families with land. Beneficiary identification and demand assessment are handled through state and Union Territory governments under the scheme’s rules.

Applicants under the first phase: The extension to September 30, 2026, was intended to complete houses already sanctioned under the original mission. Anyone still waiting for a sanctioned house should check the application and construction status with the relevant ULB or state authority.

The latest sanctions show that approvals under PMAY-U 2.0 continue to be issued in batches. But a sanction figure is not the same as a completed house or a subsidy already credited to a borrower. Applicants should check the rules for their particular scheme vertical and verify their status through official channels.