Housing Loan Interest Subsidy Scheme

Summary of the Scheme
Name of Scheme	Interest Subsidy Scheme (ISS) under Pradhan Mantri Awas Yojana–Urban 2.0 (PMAY-U 2.0)
Launch Year	2024
Benefits	Up to ₹1.80 lakh in home loan interest subsidy.
Beneficiary	Eligible urban EWS, LIG and MIG families with annual household income up to ₹9 lakh.
Nodal Agency	Ministry of Housing and Urban Affairs (MoHUA)
Subscription	Subscribe here to get Update Regarding Scheme
Mode of Apply	Online through the PMAY-U 2.0 Unified Web Portal, or with assistance from a Common Service Centre (CSC) or the concerned Urban Local Body.

Housing Loan Interest Subsidy Scheme (PMAY-U 2.0): Up to ₹1.80 Lakh Off Your Home Loan

Rising property prices and loan EMIs put homeownership out of reach for many urban families. The Interest Subsidy Scheme (ISS) under Pradhan Mantri Awas Yojana-Urban 2.0 (PMAY-U 2.0) gives eligible families a 4% interest subsidy on the first ₹8 lakh of a home loan, worth up to ₹1.80 lakh.

What is the scheme?

The Union Cabinet approved the scheme in August 2024, and it came into effect on 1 September 2024. The Ministry of Housing and Urban Affairs (MoHUA) implements it. It helps eligible urban EWS, LIG and MIG families buy, repurchase or construct a house through a qualifying home loan. The loan must be sanctioned and disbursed on or after 1 September 2024.

Scheme at a glance

Key limits

The actual subsidy may be lower than ₹1.80 lakh. If your eligible loan is below ₹8 lakh or the tenure is shorter than 12 years, the subsidy is calculated proportionately. No subsidy applies to the part of the loan above ₹8 lakh.

Income categories

Who is eligible?

1. You must belong to an eligible urban household in India, within the income limits above.
2. Your family must not own a pucca house anywhere in India, in the name of the applicant or any family member.
3. Your family must not have received a house under any Central, State, UT or local government housing scheme in the previous 20 years.
4. The loan must be sanctioned and disbursed on or after 1 September 2024.
5. The loan must not exceed ₹25 lakh, the house value ₹35 lakh, and the carpet area 120 sq. m.
6. The loan tenure must be more than five years.
7. You must provide Aadhaar or Aadhaar Virtual ID for all family members, plus income details and other documents.

Widows, single women, senior citizens, persons with disabilities, transgender persons, SC/ST, minorities and other vulnerable groups get preference, subject to the conditions. Meeting the income limit alone does not guarantee approval.

How the subsidy is paid

The subsidy is released in five yearly instalments, credited to your home loan account to reduce the outstanding principal. For each instalment:

• The loan account must stay active and standard, with more than 50% of the principal outstanding.
• No instalment is released while the account is classed as an NPA.
• Before the fourth instalment, the house must be completed and geo-tagged, and the utilisation certificate submitted.

Documents required

• Aadhaar card or Virtual ID of all family members
• PAN card, where required
• Address proof
• Income certificate or self-declaration of household income, as applicable
• Bank account details
• Home loan details and documents from the lender
• Approved building plan or layout approval, unless the State or UT exempts it
• Declaration that the family owns no pucca house in India and meets the previous-assistance conditions
• Land ownership documents, where applicable, for construction
• Any other document the Primary Lending Institution (PLI), Ministry or local authority asks for

How to apply

1. Open the PMAY-U 2.0 portal and click Apply for PMAY-U 2.0.
2. Read the instructions and select the Interest Subsidy Scheme (ISS). The selected vertical generally can’t be changed later, so check eligibility first.
3. Check the document list and click Proceed. Keep Aadhaar details, family details, bank information and income proof ready.
4. Enter your personal, family, address and income details, matching your documents.
5. Enter your home loan and PLI details (the bank or housing finance company handling your loan).
6. Review, submit and save your application number.
7. The authorities and lender verify your details and eligibility.

If you need help, apply through a Common Service Centre (CSC) or your Urban Local Body or municipality. Submitting an application does not guarantee the subsidy, since approval depends on verification.

Checking your status

1. Open the PMAY-U 2.0 portal and find the application status or beneficiary service.
2. Enter your User Code, Application ID or registered mobile number, as asked.
3. Submit to see your status.

If an application is rejected, read the status remarks. Rejected applications may be edited and resubmitted where permitted. If the subsidy hasn’t arrived, ask your lender. Approval and subsidy release are separate stages.

Rules to know before you apply

• Not covered: land-only purchases, and repairs or additions to an existing house, such as adding a kitchen or bathroom. A combined land-and-construction loan may qualify if it meets the limits.
• Once per property: a later buyer can’t claim the same benefit for that property.
• Lock-in: closing the loan within the five-year lock-in period, selling or transferring the house, or using it for non-residential purposes may lead to discontinuation and recovery of subsidy amounts.

Confirm the exact consequences of early closure or transfer with your lender and the scheme authority.

Related schemes

• Pradhan Mantri Awas Yojana Urban, for urban housing support
• Pradhan Mantri Awaas Yojana Gramin, for eligible rural households

Need help?

• Phone: 011-23060484, 011-23063620, 011-23063567, 011-23061827
• WhatsApp: 8810389745
• Email: pmaymis-mhupa@gov.in
• Additional support email: pmay2helpdesk@gmail.com
• Address: Housing for All, Ministry of Housing and Urban Affairs, Sankalp Bhawan, Kasturba Gandhi Marg, New Delhi 110001

Frequently asked questions

How much subsidy can I get?
Up to ₹1.80 lakh: 4% on the first ₹8 lakh of the loan, over up to 12 years.

What are the loan and property limits?
Loan up to ₹25 lakh, house value up to ₹35 lakh, carpet area up to 120 sq. m.

How is the subsidy paid?
In five yearly instalments credited to your home loan account.

Can I get a subsidy for buying only a plot?
No. Land-only purchases aren’t covered.

Can a family that already owns a pucca house apply?
No. The family must not own a pucca house anywhere in India.

How do I apply?
Through the PMAY-U 2.0 portal, a CSC or your Urban Local Body.