PMAY-Urban 2.0 interest subsidy: who qualifies

Who qualifies

According to the Scheme Guidelines (section 5.4):

• Income: annual household income up to ₹3 lakh (EWS), ₹6 lakh (LIG) or ₹9 lakh (MIG). For an individual applicant, a self-certificate or affidavit is proof of income.
• Family: the beneficiary family is husband, wife, unmarried sons and unmarried daughters. Families in urban areas must not own a pucca house (an all-weather dwelling unit) anywhere in India, in the name of any family member. If two or more family members take a loan, jointly or separately, on the same property, they are treated as one family for income and benefit.
• Loan date: loans “sanctioned and disbursed on 01.09.2024 or after”.
• Purpose: purchase, re-purchase or construction.
• Size: loan up to ₹25 lakh, house value up to ₹35 lakh, carpet area up to 120 sq m. If the income or property value as assessed by the lender for sanction is above the limit, the loan is not eligible.
• Once per property: the subsidy is given once for a property. A buyer of a property that already received it cannot claim it. A borrower who switches lenders (balance transfer) cannot claim again.
• Aadhaar: lenders link the beneficiary to Aadhaar or Aadhaar Virtual ID to avoid duplication (section 5.4.7).

The guidelines we read do not deal with non-resident Indians. If you are an NRI, ask the lender and the portal whether you can apply; do not assume.

How much the subsidy is

The Guidelines say the maximum applies to beneficiaries with a loan tenure of more than five years.

How it is paid

The subsidy is released in five equal yearly instalments by direct benefit transfer into the loan account, provided the loan is active and more than 50% of the principal is outstanding at the time of release. The lender credits it upfront by deducting it from the principal, and you pay the EMI, at the lender’s rate on the reducing balance, on the remaining principal (section 5.4.10 and 5.4.12). The central government releases the money monthly through the nodal agency, and you are told by SMS.

How to apply

You register your demand on the unified web portal, and the application is forwarded to the lender (section 5.4.8). Lenders must display the scheme details at their branches. The PMAY-Urban portal states that its page was last updated on 30 September 2026 and lists these guidelines; we did not find a statement on that page that the ISS is closed or extended, nor the interest subsidy details, which are in the Guidelines. Check the portal and your lender before you plan on it.

Conditions after you receive it

There is a mandatory five-year lock-in from the disbursal of the first instalment of the home loan under ISS: you cannot sell or transfer the house during it (section 4.10). Geo-tagging of the house is required at set points (section 5.4.17). A false declaration of income can lead to legal proceedings.

The Guidelines also say houses acquired with central assistance should be in the name of the female head of the household or in the joint name of husband and wife, and that a woman’s name may be added to the registered deed later, with states to provide exemption from additional stamp duty and registration charges in those cases (sections 1.8 and 1.9). For the state concessions as published, see stamp duty concession for women.

Which professional to consult

A home loan lender that takes part in the scheme, and the State Level Nodal Agency named by your state or union territory, which the Guidelines say helps beneficiaries with approvals and documents. A property lawyer can check that the house and the deed meet the conditions.