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Aditya Birla Housing Finance Ltd has strengthened its participation in the Government of India's Pradhan Mantri Awas Yojana Urban (PMAY-U) 2.0, focusing on improving access to housing finance for eligible first-time homebuyers across urban India. The company is offering PMAY-linked home loans with longer repayment tenures, higher loan-to-value ratios and simplified documentation aimed at economically weaker, low-income and middle-income households. The initiative aligns with the government's Housing for All objective and comes amid a broader push to expand formal housing finance penetration. With affordability remaining a key constraint for urban homeownership, the lender's approach highlights the role of housing finance companies in enabling demand-led growth within the affordable housing segment under the revised PMAY-U framework.
Aditya Birla Housing Finance Ltd (ABHFL), a wholly owned subsidiary of Aditya Birla Capital Ltd, has expanded its engagement under the Government of India's Pradhan Mantri Awas Yojana Urban (PMAY-U) 2.0, with a focus on supporting first-time homebuyers in the affordable housing segment. Advertisement
Under its PMAY-linked home loan offerings, the company is providing loans of up to INR 25 lakh or up to 90% of the property's market value, with repayment tenures extending up to 30 years. The structure is intended to lower monthly repayment burdens and improve eligibility for households across the Economically Weaker Section (EWS), Low Income Group (LIG) and Middle Income Group (MIG) categories defined under the scheme.
The lender is also offering simplified documentation processes and flexible eligibility assessments, which are particularly relevant for informal or self-employed borrowers who often face barriers in accessing institutional housing finance. In addition, eligible borrowers can avail an interest subsidy of up to INR 1.8 lakh, disbursed in five annual instalments under PMAY-U 2.0.
As per scheme guidelines, eligible properties must have a value of up to INR 35 lakh and a maximum carpet area of 120 sq m. Women ownership or co-ownership of the property remains a mandatory requirement, consistent with the programme's objective of improving female participation in asset ownership.
Company executives indicated that the initiative is aligned with the broader national objective of expanding organised homeownership and deepening the reach of formal housing finance. The move comes at a time when India's affordable housing segment continues to be supported by favourable macroeconomic conditions, including steady urbanisation and income growth.
As of the end of September 2025, Aditya Birla Housing Finance reported assets under management of over INR 38,270 crore and operated through a network of 167 branches across India. The company holds long-term AAA (Stable) and short-term A1+ credit ratings from leading rating agencies.
The expanded PMAY-U 2.0 participation underscores the growing role of housing finance institutions in translating public housing policy into on-ground credit delivery, particularly for first-time buyers in urban markets.
Source - PTI
5th Jun, 2025
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