High property costs and limited access to bank finance are slowing affordable housing delivery.

PMAY Faces Major Hurdles in Mumbai as Thousands of Homes Remain Unallocated.

The Pradhan Mantri Awas Yojana (PMAY) is facing major implementation challenges in Mumbai and the wider Mumbai Metropolitan Region (MMR), where high land prices and limited access to housing finance are preventing many eligible families from purchasing homes. MHADA CEO Sanjeev Jaiswal said nearly 50,000 homes have been constructed under housing initiatives in the MMR, but around 10,000–15,000 units remain unallocated because beneficiaries could not secure bank funding. PMAY offers a subsidy of ₹2.5 lakh, but this is often insufficient for homes costing around ₹12 lakh to ₹15 lakh. Many potential beneficiaries depend on informal or irregular incomes, making it difficult to meet banks’ income, documentation and credit requirements. Poor CIBIL scores further restrict access to formal loans. Across Maharashtra, around 3 lakh homes have been constructed under PMAY, highlighting both the scale of the programme and the financing gap still facing affordable housing.