Business EconomyPosted at: Oct 15 2025 2:03PM


About 1.2 crore houses sanctioned under PMAY upto August : SBI report

New Delhi, Oct 15 (UNI) About 1.2 crore houses were sanctioned to be constructed under the Pradhan Mantri Awas Yojana--Urban (PMAY-U) and PMAY-U 2.0 upto August and the construction of 75pc of the houses has been completed, the State bank of India (SBI) said in a report today.
Most of the states have a progress rate of 75pc or more. There are some states where progress is less than 60 pc (like Andhra Pradesh, Bihar and Haryana).
The Pradhan Mantri Awas Yojana–Urban 2.0 (PMAY-U 2.0) was launched in 2024 to provide central assistance to one crore eligible urban families, ensuring that citizens of urban India enjoy an improved quality of life.
Eligible families belonging to the EWS, LIG and MIG categories living in urban areas, without a pucca house anywhere in the country, can purchase or construct a house under PMAY-U 2.0
“PMAY is now acting as a change agent with it becoming a catalyst for enhanced discretionary and even non-discretionary spending with a demonstrated wealth effect, financial stability and well-being. Women borrowers in the EWS/LIG/MIG category are benefiting from higher discretionary spending reflected in spiraling transactions across the value-volume matrix.” the SBI report said.
According to SBI research, the normalized Shannon entropy score of 0.84 indicates spatial evenness in the implementation of PMAY across India. This score suggests that the scheme’s benefits are widely dispersed, with smaller states also actively participating, ensuring balanced and inclusive development.
The ‘Shannon entropy score’ is a measure of uncertainty or randomness in a system calculated from the probabilities of its possible outcomes. It quantifies the average information content of a random variable and is used to determine how well you can predict the outcome of a system.
The report underlines a significant rise in household spending patterns, particularly among female borrowers. Following the disbursement of PMAY loans, average monthly UPI spending increased by Rs5,050, reaching Rs45,081, signifying greater financial confidence and liquidity.
SBI Research noted that women borrowers have shown almost double the increase in UPI spending compared to their male counterparts. The scheme’s requirement that houses be registered in the name of the female head of the household or jointly with the husband has had a positive impact on women’s financial behaviour, enhancing their role in household economic decisions.
The study also observed distinct behavioural patterns across income levels. Borrowers in the lowest 25pc income bracket registered a notable increase in debit card spending (elasticity 0.4), reflecting improved financial freedom due to access to subsidized housing loans.
In contrast, higher-income groups (earning above Rs 9 lakh annually) reported a decline in both UPI and debit card spending, likely owing to increased EMI outflows. However, middle and upper-middle income borrowers showed a higher UPI spending elasticity of 0.18, indicating the “wealth effect” created by reduced housing costs and improved financial stability.
The report highlights that PMAY loans are indirectly promoting digital transactions. While debit card usage rose among low-income families, UPI spending surged significantly among middle and higher-income borrowers, indicating a rise in discretionary digital transactions.
“This dual effect—reduced liquidity but higher perceived wealth—is transforming spending behaviour, with beneficiaries exhibiting greater confidence in their financial well-being,” the report said.
SBI Research found that urban and semi-urban borrowers recorded the highest increase in spending post-PMAY loan disbursal, whereas metro residents showed a marginal decline due to higher living costs.
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