Pradhan Mantri Awas Yojana (Urban) is an iniative by Prime Minister Narendra Modi of India in which affordable housing will be provided to the urban poor. The government has identified 305 cities and towns have been identified in 9 states for beginning construction of houses for urban poor.

Pradhan Mantri Awaas Yojana was launched in June 2015 with an aim to provide affordable housing to urban poor.

Under PMAY, it is proposed to build 2 crore houses for urban poor including Economically Weaker Sections and Low Income Groups in urban areas by the year 2022 through a financial assistance of ₹2 trillion (US$31 billion) from central government.This Mission has four components viz., In-situ Slum Redevelopment with private sector participation using land as resource, Affordable Housing through Credit Linked Subsidy, Affordable Housing in Partnership with private and public sector and Beneficiary led house construction/enhancement. Under these components, central assistance will be in the range of ₹1 lakh (US$1,600) to ₹2.30 lakh (US$3,600).[6]

The houses given under this scheme will be owned by females or jointly with males.

Condition for PMAY: Beneficiary max age 70 years. EWS(Economic Weaker Section) annual income Less than Rupees 3 Lac. LIG(Lower Income Group) Annual Income 3,00,001 to 6,00,000 Lac INR The beneficiary should not have an own dwelling unit on the name of any family member in any part of India.

See also: Indian states ranking by families owning house
The government has approved an investment of ₹439.22 billion (US$6.8 billion) for construction of 6,83,724 houses for urban poor including central assistance commitment of ₹100.50 billion (US$1.6 billion) by April 2016.

The features of Pradhan Mantri Awas Yojana are that The government will provide an interest subsidy of 6.5% on housing loans availed by the beneficiaries for a period of 20 years under credit link subsidy scheme(CLSS) from the start of a loan,The houses under Pradhan Mantri Awas Yojana would be constructed through a technology that is eco-friendly,While allotting ground floors in any housing scheme under PMAY, preference will be given to differently abled and older persons

As of 25 April 2016, the government has identified 2,508 cities and towns in 26 states for beginning construction of houses for urban poor.

Chhattisgarh – 1000 cities/towns
Gujarat – 30 cities/towns
Jammu and Kashmir – 19 cities/towns
Jharkhand – 15 cities/towns
Kerala – 15 cities/towns
Madhya Pradesh – 74 cities/towns
Odisha – 42 cities/towns
Private contributors[edit]
IIFL Home Loans have been helping beneficiaries avail Credit linked Subsidy under Pradhan Mantri Awas Yojana across the country. Till 17th August 2017, the company has helped 4187 beneficiaries avail government subsidy. ICICI Bank is giving subsidised home loans to the people eligible for this scheme. AU Housing Finance Limited is also doing subsidy based funding under this scheme.

“Rajiv Awas Yojana (RAY)” was an Indian government program that attempts to help slum dwellers gain appropriate housing and address the processes by which slums are created and reproduced. It was introduced by the Indian government’s Ministry of Housing and urban poverty Alleviation. The programme was a Centrally Sponsored Scheme, which ran from 2013 to 2014. The scheme aimed to make India slum-free by 2022 by providing people with shelter or housing, free of cost. It began with a pilot project, before launching in mission mode. The government earmarked ₹322.30 billion (US$5.0 billion) for its implementation during India’s 12th Five Year Plan. One million beneficiaries were proposed to be covered under Rajiv Awas Yojana.

Site selection was to be made by the states in consultation with the Centre giving priority to district headquarters, cities of religious heritage and tourist importance, with due consideration to the criterion of the pace of growth of the city, of slums within the city and predominance of Scheduled Caste, Scheduled Tribe and minority population and other weaker and vulnerable section of the society.[11]SBI has now slashed down the interest-rate of home loans above Rs. 75 lakh by 10 basis points. From June 15 2017, the rate for the same will be 8.55-8.6%.