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.

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.

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.