PMAY Subsidy Calculator: your PMAY-U 2.0 interest subsidy
PMAY-U 2.0 gives a home loan interest subsidy of up to ₹1.80 lakh to urban EWS, LIG and MIG families that buy or build their first pucca house. Check the conditions and the amount with the formula of the official calculator.
Subsidy: 4% a year on the first ₹8 lakh of the loan, for up to 12 years, with a maximum of ₹1,80,000, paid in 5 yearly instalments.
Limits: household income up to ₹9 lakh a year, loan up to ₹25 lakh, house value up to ₹35 lakh, carpet area up to 120 sq m, first pucca house, loan sanctioned and disbursed from 1 September 2024.
PMAY-U 2.0 interest subsidy: the rules
- Who: EWS (income up to ₹3 lakh a year), LIG (₹3 lakh to ₹6 lakh) and MIG (₹6 lakh to ₹9 lakh) families in urban areas. The family must not have a pucca house in India.
- Loan and house: loan up to ₹25 lakh, house value up to ₹35 lakh, carpet area up to 120 sq m. If the loan or the value is more than the limit, the loan does not get the subsidy.
- Subsidy: 4% a year on the first ₹8 lakh of the loan (or the full loan if it is less), for up to 12 years. The maximum release is ₹1.80 lakh, equal to a present value of ₹1.50 lakh at 8.5%.
- How you get it: in 5 equal yearly instalments, into your home loan account. The lender decreases your principal. You select a lower EMI or a shorter tenure; if you do not reply in 7 working days, the lender decreases the EMI.
- Conditions at each instalment: the loan must be active and not a non-performing asset, and more than 50% of the principal must be outstanding. The lender also gets photographs of the house with location data (geo-tagging).
- Women ownership: the house must be in the name of the female head of the family or jointly with the wife. Only when the family has no adult woman can a man be the only owner.
- Scheme period: 5 years from 1 September 2024. The lender must sanction and disburse the loan on or after that date.
How the calculator gets the subsidy
This is the formula in the official PMAY-U 2.0 subsidy calculator: L = the smaller of ₹8 lakh and your loan; N = the smaller of 144 months and your tenure. The subsidy is the total interest on L at 4% for N months, with a maximum of ₹1,80,000. Each yearly instalment is one fifth of it.
Points that the official texts do not make clear: the guidelines say the tenure must be more than 5 years, but the agreement with the lenders says a minimum of 5 years. The guidelines do not give the date of each instalment. Thus, this page does not show a schedule of the instalments. The old CLSS scheme closed in 2021 (MIG) and 2022 (EWS and LIG).
Sources
- MoHUA: PMAY-U 2.0 Operational Guidelines (September 2024), paras 1.1, 1.8, 3.1–3.3, 5.4, 10.2
- PMAY-U 2.0 official interest subsidy calculator (the formula)
- PIB: Cabinet approves PMAY-U 2.0 (9 August 2024)
- PMAY-U 2.0 user manual for lenders (March 2026): release conditions
- HUDCO: closure of CLSS (2 February 2023)
Read on 28 Oct 2026. Apply through your bank or housing finance company; this page only calculates.
PMAY-U 2.0 subsidy: frequently asked questions
How much subsidy do I get under PMAY-U 2.0?
Up to ₹1,80,000. The official formula is the total interest at 4% a year on the first ₹8 lakh of the loan for up to 12 years, with a maximum of ₹1,80,000. A loan of ₹8 lakh or more for 12 years or more gets the maximum. A loan of ₹5 lakh for 12 years gets approximately ₹1,30,380.
Who is eligible for the PMAY-U 2.0 interest subsidy?
Urban families with a yearly income up to ₹9 lakh (EWS up to ₹3 lakh, LIG ₹3 lakh to ₹6 lakh, MIG ₹6 lakh to ₹9 lakh) and no pucca house in India. The loan must be up to ₹25 lakh, the house value up to ₹35 lakh and the carpet area up to 120 sq m.
When do I get the subsidy?
In 5 equal yearly instalments, into your home loan account. At each instalment, the loan must be active and not a non-performing asset, and more than 50% of the principal must be outstanding. The guidelines do not give the date of each instalment.
Does the subsidy decrease my EMI?
The lender subtracts each instalment from your principal. You select a lower EMI or a shorter tenure. If you do not reply in 7 working days, the lender decreases the EMI.
Can I still get the old PMAY CLSS subsidy?
No. The old Credit Linked Subsidy Scheme closed on 31 March 2021 for MIG and on 31 March 2022 for EWS and LIG. PMAY-U 2.0 is a different scheme with different limits.
Does a balance transfer keep the subsidy?
You get the subsidy only one time for a property. If you move the loan to a different lender, you cannot claim it again.