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Difference between PMAY Gramin and PMAY Urban

By Tata Capital
21 July 2026
7 mins read
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On June 1, 2015, the Government of India launched its flagship housing project – the Pradhan Mantri Awas Yojana (PMAY). With an aim to provide affordable housing for all by 2022, the scheme emphasizes on providing low-cost pucca homes to the poor in both urban and rural areas. Basic amenities such as water supply, proper sanitation and electricity are also to be provided.

For streamlining purposes, the scheme is divided into two components –

Pradhan Mantri Awas Yojana Urban/PMAY Urban/PMAYU
Pradhan Mantri Awas Yojana Gramin/PMAY Gramin/PMAYG

What is PMAY Urban (PMAY-U)?

PMAY Urban (PMAY-U) is the urban component of the Pradhan Mantri Awas Yojana, focused on delivering affordable pucca housing to eligible families in cities and towns. To address the housing requirements of different beneficiary groups, PMAY-U operates through four verticals:

In-Situ Slum Redevelopment (ISSR): Redevelops slums irrespective of the land they stand on, whether privately owned or owned by the Central Government, State Government, or Urban Local Bodies, giving slum dwellers formal housing on the same land.
Credit Linked Subsidy Scheme (CLSS): Provides an interest subsidy on home loans for eligible income categories. Manual scavengers, women, persons with disabilities, transgender persons, and people belonging to SC, ST, OBC, and minority communities receive preference.
Affordable Housing in Partnership (AHP): Delivers affordable housing projects in partnership with private and public sectors, with financial assistance of ₹1.5 lakh provided for each house built for Economically Weaker Section families.
Beneficiary-Led Construction/Enhancement (BLC): Supports EWS individuals with assistance and guidance to construct a new house or enhance an existing one on land they own.

PMAY Urban Eligibility Criteria

To qualify under PMAY Urban, applicants must meet conditions on housing status, income, and prior benefits. The core criteria are:

No Pucca House: The applicant or any family member must not own a pucca house anywhere in India.
Income Categories: Eligibility is grouped by annual household income into EWS, LIG, and MIG categories, and the subsidy varies by category as shown in the table below.
Location: The property must fall within a statutory town or urban area notified under the scheme.
Previous Subsidies: The household must not have availed central assistance under PMAY or any other government housing scheme earlier.
Mandatory Documents: Aadhaar, identity and address proof, income proof, and property documents are required for verification.

What is PMAY Gramin (PMAY-G)?

PMAY Gramin (PMAY-G) is the rural component of the Pradhan Mantri Awas Yojana, restructured from the earlier Indira Awaas Yojana. It provides financial assistance to homeless rural households and families living in kutcha or dilapidated houses to build pucca homes with basic amenities. Beneficiaries are identified through the Socio-Economic and Caste Census (SECC 2011) data and verified by the Gram Sabha, which keeps the selection targeted at those with the greatest housing need.

PMAY Gramin Benefits & Features

PMAY-G goes beyond funding construction. It combines direct assistance with converged benefits from other government programs, so a beneficiary gets a complete, livable home rather than just four walls.

Key Benefits of PMAY Gramin

Direct Financial Assistance: Eligible households receive ₹1.2 lakh for houses in the plains and ₹1.3 lakh for houses in hilly, difficult, or Integrated Action Plan areas.
Optional Top-up Loans: Beneficiaries who need more than the grant can avail an institutional loan of up to ₹70,000 to complete or improve their house.
Direct Benefit Transfer (DBT): Assistance is transferred electronically in installments to the beneficiary’s bank or post office account, linked to construction progress, which cuts leakage and delays.
Women Empowerment: The scheme encourages house ownership in the name of a woman of the household, or jointly, strengthening women’s asset ownership in rural India.
Disaster-Resilient Technology: Houses are built using region-appropriate designs and trained rural masons, making them better suited to local climate and disaster risks.

Key Features of PMAY Gramin

Sanitation Facilities: Each house is provided with a toilet through convergence with the Swachh Bharat Mission-Gramin, and solid and liquid waste generated by households is managed under the scheme.
Guaranteed Employment: Beneficiaries receive 90 to 95 person-days of unskilled wage employment under MGNREGA to construct their own houses.
Basic Utilities: Households gain access to drinking water through the government’s rural water supply programs, as well as electricity connections and clean cooking fuel.

PMAY Gramin Eligibility Criteria

Beneficiaries for the Pradhan Mantri Gramin Awas Yojana are chosen by the Gram Sabha based on the data collected in the Socio-Economic and Caste Census of 2011 (SECC 2011). If the applicant’s name is mentioned in the list issued by the Gram Sabha, then he/she is eligible for assistance of 1.2 Lakhs for houses in the plains and 1.3 Lakhs for houses located in areas that are difficult to access.

PMAY Gramin and PMAY Urban may be two separate schemes, but they serve a common purpose. The primary reason for the bifurcation of the Pradhan Mantri Awas Yojana is to ensure that the two different administrations can pay complete attention and concentrate on their respective regions and the associated duties.

You can visit the Tata Capital website to check your PMAY eligibility or to apply for a home loan. With attractive home loan interest rates, minimal documentation, and years of experience, Tata Capital makes getting a home loan easy and hassle-free.

Also Read – Pradhan Mantri Awas Yojana for Existing Home Loan

Key Differences Between PMAY Urban and PMAY Gramin

Understanding the difference between PMAY Urban and Gramin is crucial for identifying which housing scheme applies to you.

Basis of Difference	PMAY Urban	PMAY Gramin (PMAY-G)
Target Area	Cities and urban areas	Rural areas and villages
What is the scheme	Provides affordable housing through credit-linked subsidies, in-situ slum redevelopment, and beneficiary-led construction	What is PMAY G scheme: Provides pucca houses with basic amenities to homeless and kutcha house owners
Eligibility Criteria	Based on annual household income (EWS, LIG, MIG categories)	PMAY Gramin eligibility: Landless families, SC/ST households, families with disabled/female heads, zero-land ownership
Financial Assistance	Interest subsidy up to Rs. 2.67 lakh on home loans	PMAY Gramin benefits: Rs. 1.20 lakh (plains), Rs.1.30 lakh (hilly/difficult areas)

How to Apply for PMAY Gramin: Step-by-Step Guide

So now that we know what is PMAY, here’s how to apply PMAY Gramin, clearly and step by step. The PMAY-G scheme follows an offline, verification-based process, which is one key difference between PMAY Urban and Gramin.

Step 1: Check PMAY Gramin eligibility: Ensure the household lives in a rural area, does not own a pucca house, and is listed in the SECC 2011 database.

Step 2: Visit the Gram Panchayat: Approach your local Gram Panchayat or village officer to confirm your name in the PMAY Gramin beneficiary list.

Step 3: Field verification: Officials conduct a physical verification of housing conditions and documents.

Step 4: Approval and sanction: Once verified, the application is approved under the PMAY-G scheme.

Step 5: Receive benefits: Funds are released in instalments directly to the bank account, covering major PMAY Gramin benefits like home construction support and basic amenities.

Also Read – How to Fill PM Awas Yojana Form Online – PMAY

Conclusion

Understanding the difference between PMAY Urban and Gramin makes it easier to grasp what is PMAY, assess PMAY Gramin eligibility, and benefit from the PMAY-G scheme. With clear pathways on how to apply PMAY Gramin and well-defined PMAY Gramin benefits, the scheme has played a crucial role in reshaping India’s housing story.

If you’re planning to build or upgrade your home beyond the scheme’s support, a Tata Capital Home Loan can offer flexible financing and competitive interest rates, making your journey to homeownership smoother and more secure. Visit the Tata Capital website to learn more.

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FAQs

What is the main difference between PMAY Urban and PMAY Gramin?

The key difference between PMAY Urban and Gramin lies in the target group. PMAY Urban offers credit-linked subsidies to city residents based on income, while PMAY Gramin provides direct financial assistance to eligible rural families identified through the SECC 2011 database.

What is PMAY G scheme and whom does it benefit?

If you’re thinking what is PMAY, the PMAY G scheme is a rural housing initiative under, aimed at homeless families or those living in kutcha houses. It benefits low-income rural households by offering financial support to build a safe, permanent home with basic amenities.

Who is eligible for PMAY Gramin and PMAY Urban?

PMAY Gramin covers rural households that are homeless or live in kutcha or dilapidated houses, identified through SECC 2011 data and verified by the Gram Sabha. PMAY Urban covers EWS, LIG, and MIG families in urban areas who do not own a pucca house and have not received benefits under any earlier government housing scheme.

How can I apply for PMAY Gramin in India?

To understand how to apply PMAY Gramin, eligible households must approach their local Gram Panchayat. Applications are verified using SECC 2011 data, followed by field checks before approval and phased fund disbursement to the beneficiary’s bank account.

What are the benefits available under PMAY Gramin for rural homebuyers?

The key PMAY Gramin benefits include direct financial assistance for home construction, a minimum house size, wage support under MGNREGA and access to sanitation and electricity, helping rural families achieve safe and dignified housing.

Which scheme is better: PMAY Urban or PMAY Gramin?

Neither scheme is better; they serve different populations and are not interchangeable. Your location decides which applies: urban residents fall under PMAY-U, which works mainly through home loan interest subsidies, while rural households fall under PMAY-G, which provides direct construction assistance. The right scheme is simply the one your area and eligibility place you in.

Can I apply for both PMAY Urban and PMAY Gramin schemes?

A household can receive assistance under only one component of PMAY. Availing benefits under either scheme, or under any other central or state housing scheme, disqualifies the household from claiming assistance under the other.

Is PMAY Gramin only for rural areas and PMAY Urban for cities?

Coverage is defined by area: statutory towns and notified urban areas fall under PMAY Urban, while all remaining rural areas fall under PMAY Gramin. Where you can apply depends on how your area is classified, not on personal preference.

Who is eligible for PMAY Gramin vs PMAY Urban?

Which scheme is better: PMAY Urban or PMAY Gramin?

Can I apply for both PMAY Urban and PMAY Gramin schemes?

Is PMAY Gramin only for rural areas and PMAY Urban for cities?

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Difference between PMAY Gramin and PMAY Urban

What is PMAY Urban (PMAY-U)?

PMAY Urban Eligibility Criteria

What is PMAY Gramin (PMAY-G)?

PMAY Gramin Benefits & Features

Key Benefits of PMAY Gramin

Key Features of PMAY Gramin

PMAY Gramin Eligibility Criteria

Key Differences Between PMAY Urban and PMAY Gramin

How to Apply for PMAY Gramin: Step-by-Step Guide

Conclusion

FAQs

What is the main difference between PMAY Urban and PMAY Gramin?

What is PMAY G scheme and whom does it benefit?

Who is eligible for PMAY Gramin and PMAY Urban?

How can I apply for PMAY Gramin in India?

What are the benefits available under PMAY Gramin for rural homebuyers?

Which scheme is better: PMAY Urban or PMAY Gramin?

Can I apply for both PMAY Urban and PMAY Gramin schemes?

Is PMAY Gramin only for rural areas and PMAY Urban for cities?

Who is eligible for PMAY Gramin vs PMAY Urban?

Which scheme is better: PMAY Urban or PMAY Gramin?

Can I apply for both PMAY Urban and PMAY Gramin schemes?

Is PMAY Gramin only for rural areas and PMAY Urban for cities?

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