Calculate home loan EMI and an indicative subsidy estimate using the published PMAY-U 2.0 Interest Subsidy Scheme (ISS) parameters: 4% interest subsidy on the first ₹8 lakh of the loan, household income up to ₹9 lakh, loans sanctioned and disbursed on or after 1 September 2024. This page cannot confirm that you are eligible, that the scheme is currently open for applications, or that any subsidy will be credited. Check pmaymis.gov.in and with your lender.
| Monthly EMI (without subsidy) | — |
| Estimated Subsidy - total over 5 yearly instalments (indicative) | — |
| Estimated Subsidy - present value at the scheme's 8.5% discount rate (indicative) | — |
Under the Interest Subsidy Scheme of Pradhan Mantri Awas Yojana - Urban 2.0, home loans sanctioned and disbursed on or after 1 September 2024 get an interest subsidy of 4% per year on the first ₹8 lakh of the loan, for a tenure up to 12 years. The subsidy (maximum ₹1.80 lakh, released in 5 equal yearly instalments) is credited to the loan account, reducing principal and EMI. Eligibility: household income up to ₹3 lakh (EWS), ₹6 lakh (LIG) or ₹9 lakh (MIG); loan up to ₹25 lakh; house value up to ₹35 lakh; carpet area up to 120 sqm; loan tenure over 5 years. Source: PMAY-U 2.0 Operational Guidelines, pmay-urban.gov.in, and the official Interest Subsidy Scheme page (4% on the first ₹8 lakh, tenure up to 12 years, maximum release ₹1.80 lakh, maximum NPV ₹1.50 lakh at 8.5%, 5 yearly instalments).
How it is paid: the subsidy is credited to the borrower's loan account as a deduction from principal and released in 5 yearly instalments, provided the loan is active and more than 50% of principal is outstanding at each release (guideline 5.4.10). This calculator shows only an indicative estimate of the 4% yearly subsidy on the reducing balance of the first ₹8 lakh over up to 12 years (capped at ₹1.80 lakh); the exact amount follows the mission's NPV computation (maximum NPV ₹1.50 lakh at an 8.5% discount rate), and the EMI impact depends on when each instalment is credited.
Q: Who is eligible for the PMAY-U 2.0 interest subsidy?
A: The published parameters cover households with annual income up to ₹3 lakh (EWS), ₹3-6 lakh (LIG) or ₹6-9 lakh (MIG), for purchase or construction of a house, with a home loan up to ₹25 lakh on a property valued up to ₹35 lakh (carpet area up to 120 sqm), where neither the beneficiary family nor the property has received the subsidy before. These are the published parameters only; whether you qualify, and whether applications are currently open, must be confirmed with your lender or the PMAY-MIS portal. The estimate is not an entitlement.
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