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PMAY Subsidy Calculator (PMAY-U 2.0 ISS)

Check eligibility and estimate the interest subsidy under PMAY-Urban 2.0 for your income, loan and house value.

Updated 30 September 2026 · 17 lenders tracked
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Reducing-balance maths, Indian formats
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About this calculator

Under the Interest Subsidy Scheme of PMAY-U 2.0, EWS, LIG and MIG families buying or building their first pucca house get a 4% interest subsidy on the first ₹8 lakh of a home loan for up to 12 years, capped at ₹1.80 lakh and paid in five yearly instalments. The calculator checks the income, house-value and loan limits and estimates the subsidy’s present value.

PMAY Subsidy Calculator (PMAY-U 2.0 ISS)

Formula: Subsidy (NPV) = present value, at your loan rate, of the EMI difference on ₹8 lakh over 12 years between your rate and your rate minus 4% — capped at ₹1.50 lakh NPV.

Scheme parameters

FeaturePMAY-U 2.0 ISS
Who qualifiesEWS (income up to ₹3 lakh), LIG (₹3 – 6 lakh), MIG (₹6 – 9 lakh); family must not own a pucca house anywhere in India
House valueUp to ₹35 lakh
Loan amountUp to ₹25 lakh
Carpet areaUp to 120 sq m
Subsidy4% 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 paid5 yearly instalments via DBT, credited by the lender against your principal
ConditionsLoan tenure over 5 years; loan must be active with more than 50% principal outstanding at each release; house geo-tagged
How to applyPMAY-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.

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Effect on your loan

  • The subsidy is credited against principal, so your outstanding falls — the lender either reduces the EMI or the tenure.
  • Only the first ₹8 lakh earns subsidy; the rest of the loan is at your normal rate.
  • If the loan is closed, becomes NPA or principal falls below 50% before an instalment, later instalments may be forfeited.
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Frequently asked questions

Is the ISS available on a ₹40 lakh house?

No. The house value must be up to ₹35 lakh and the loan up to ₹25 lakh.

Can I claim PMAY if I already got CLSS under PMAY 1.0?

No. A family that has already received central housing assistance is not eligible.

For information and comparison only. Loan terms, rates and rules change — confirm with the lender and read the Key Facts Statement before borrowing.