PMAY-Urban 2.0: Interest Subsidy & Eligibility
Eligibility, ISS subsidy of up to ₹1.80 lakh, BLC/AHP assistance and step-by-step application for PMAY-U 2.0.
Updated 27 September 2026 · 17 lenders trackedWhat you need to know
PMAY-U 2.0 was approved by the Union Cabinet on 9 August 2024 with an investment of ₹10 lakh crore and government assistance of ₹2.30 lakh crore, to help 1 crore urban families build, buy or rent a house over five years. Home buyers taking a loan use the Interest Subsidy Scheme (ISS); others can use Beneficiary-Led Construction, AHP or rental housing.
Interest Subsidy Scheme at a glance
| Feature | PMAY-U 2.0 ISS |
|---|---|
| Who qualifies | EWS (income up to ₹3 lakh), LIG (₹3 – 6 lakh), MIG (₹6 – 9 lakh); family must not own a pucca house anywhere in India |
| House value | Up to ₹35 lakh |
| Loan amount | Up to ₹25 lakh |
| Carpet area | Up to 120 sq m |
| Subsidy | 4% interest subsidy on the first ₹8 lakh of the loan, for tenure up to 12 years |
| Maximum subsidy | ₹1.80 lakh (net present value capped at ₹1.50 lakh) |
| How it is paid | 5 yearly instalments via DBT, credited by the lender against your principal |
| Conditions | Loan tenure over 5 years; loan must be active with more than 50% principal outstanding at each release; house geo-tagged |
| How to apply | PMAY-U 2.0 portal (pmaymis.gov.in) or through your bank / HFC (Primary Lending Institution) |
PMAY-U 2.0 was approved by the Union Cabinet on 9 Aug 2024 for 1 crore urban houses over 5 years. The older CLSS scheme under PMAY-U 1.0 is closed to new applicants.
Eligibility
- EWS: annual household income up to ₹3 lakh; LIG ₹3 – 6 lakh; MIG ₹6 – 9 lakh.
- The family (husband, wife, unmarried children) must not own a pucca house anywhere in India.
- Must not have received central/state housing assistance earlier.
- For ISS: house value up to ₹35 lakh, loan up to ₹25 lakh, carpet area up to 120 sq m, tenure over 5 years.
How to apply
- Check eligibilityUse the PMAY subsidy calculator and confirm your income category.
- RegisterOn the PMAY-U 2.0 portal (pmaymis.gov.in) with Aadhaar, or through your bank/HFC.
- Take the loan from a PLIThe lender must be a Primary Lending Institution under PMAY-U 2.0.
- Geo-tagging & verificationThe house is geo-tagged; documents verified by the lender and nodal agency.
- Subsidy releaseIn 5 yearly instalments via DBT to your loan account while more than 50% of principal is outstanding.
PMAY subsidy calculator
Frequently asked questions
What is the maximum PMAY-U 2.0 subsidy?
₹1.80 lakh, released in five yearly instalments (NPV capped at ₹1.50 lakh).
Is the subsidy taxable?
It is a capital subsidy credited to your loan principal and reduces the cost of the house; it is not paid to you in cash.
Can I get ISS on a balance-transferred loan?
Rules are set by the scheme guidelines and nodal agency; ask your PLI before transferring a PMAY-linked loan, as instalments are tied to the loan account.
For information and comparison only. Loan terms, rates and rules change — confirm with the lender and read the Key Facts Statement before borrowing.