Pradhan Mantri Awas Yojana - Urban 2.0

Interest Subsidy Scheme

Pradhan Mantri Awas Yojana – Urban is a government initiative designed to provide affordable housing solutions to urban families belonging to the Economically Weaker Section (EWS), Low-Income Group (LIG), and Middle-Income Group (MIG). This scheme is part of the broader vision of “Housing for All,” ensuring that eligible urban households have access to safe and secure housing.

Download PMAY Leaflet (Hindi) Download PMAY Leaflet (English)

Eligibility Criteria:

Annual Household Income:

EWS: Up to ₹3 lakh p.a.
LIG: Up to ₹6 lakh p.a.
MIG: Up to ₹9 lakh p.a.

House Ownership:

The applicant must not own a pucca house anywhere in the country.
The house constructed or acquired under this scheme must be in the name of the female head of the household or jointly in the name of both spouses. Exceptions apply in cases where there is no adult female member, or the applicant is a widower, unmarried, separated, or transgender.

Loan and Property Limits:

Maximum Housing Loan Eligible: ₹25 lakh
Maximum House Value: ₹35 lakh
Maximum Carpet Area: 120 sqm

Subsidy Details:

This subsidy is available on home loans sanctioned and disbursed on or after 1st September 2024.
The scheme provides an interest subsidy of 4.0% per annum on the first ₹8 lakh of the home loan for a tenure of up to 12 years.
Actual Release: Up to ₹1.80 lakh
Net Present Value (NPV) of Subsidy: ₹1.50 lakh (calculated at a discount rate of 8.5%)
The subsidy will be released in five equal yearly installments directly into the beneficiary’s loan account, provided the loan is active and more than 50% of the principal is outstanding at the time of subsidy release.

Key Conditions:

Aadhaar Requirement: All eligible beneficiaries, including family members, must have an Aadhaar or Aadhaar Virtual ID integrated with their details.
Self-Undertaking by Beneficiary under ISS
Unified Web-Portal: Beneficiaries must register their demand through a unified web-portal.
Submission of Layout Plans: The subsidy is contingent upon the submission of an approved layout plan as per the guidelines of the respective States/UTs. However, if there is an exemption, the layout plan may not be required.
Geo-tagging of houses to be done after release of 1st instalment, in case of purchase of completed house. In case of construction / under construction house, geo tagging is to be done before release of each instalment.
Single Use of Subsidy: The interest subsidy can only be availed once for a property. If the property is sold, the new buyer cannot claim the subsidy on it.
Loan Transfers: Beneficiaries who transfer their home loans to another financial institution (PLI) after availing of the subsidy will not be eligible to claim the subsidy again. If the subsidy was not claimed from the original lender, it cannot be claimed after the balance transfer.

Scheme Coverage:

The scheme covers all statutory towns as per the Census 2011, newly notified towns, and areas within the boundaries of Notified Planning Areas, Development Authorities, or any similar authorities established under State legislation responsible for urban planning and regulation. The updated list of statutory towns can be checked on NHB portal.