PMAY-U 2.0 Home Loan Interest Subsidy: Who Qualifies and How It Is Claimed

PMAY-U 2.0 gives a home-loan interest subsidy of 4% on the first Rs 8 lakh of the loan, for a tenure up to 12 years, to households with a yearly income up to Rs 9 lakh, on a loan up to Rs 25 lakh for a house valued up to Rs 35 lakh with a carpet area up to 120 square metres. At most Rs 1.80 lakh is released, in five equal yearly instalments, and only loans sanctioned and disbursed on or after 1 September 2024 qualify. You claim it through your bank or lender after registering on the Unified Web Portal.

Sources checked: 20 October 2026

Facts checked on 20 October 2026 against the PMAY-Urban 2.0 Scheme Guidelines of September 2024 published by the Ministry of Housing and Urban Affairs on pmay-urban.gov.in, and the PIB release of 9 August 2024.

Key facts

Point	What applies	Source
Scheme period	five years from 1 September 2024	Guidelines para 1.1 to 1.2; PIB
Income bands	EWS up to Rs 3 lakh; LIG above Rs 3 lakh up to Rs 6 lakh; MIG above Rs 6 lakh up to Rs 9 lakh	Guidelines para 3.3, 5.4.2
Loan and house value	loan up to Rs 25 lakh; house value up to Rs 35 lakh	Guidelines para 5.4.3
Carpet area	up to 120 square metres	Guidelines para 5.4.3
Subsidy rate	4% on the first Rs 8 lakh, tenure up to 12 years	Guidelines para 5.4.3
Maximum release	Rs 1.80 lakh in five equal yearly instalments, for loan tenure above five years	Guidelines para 5.4.3
Loan date	sanctioned and disbursed on or after 1 September 2024	Guidelines para 5.4.1
Exclusions	pucca house owned by the family anywhere in India; a government-scheme house in the last 20 years; a second claim on the same property	Guidelines para 1.3, 3.1, 3.2, 5.4.5
Haryana State agency	to be verified by our expert team	—

This is general information, not financial advice, and it is not a promise that you will receive the subsidy: your lender and the Ministry decide each case.

What is PMAY-U 2.0?

PMAY-U 2.0 is implemented for five years from 1 September 2024. It works through four verticals: beneficiary-led construction, affordable housing in partnership, affordable rental housing and the interest subsidy scheme. This guide is about the interest subsidy scheme, which is for people who take a home loan to buy, re-buy or build a house.

Which income band am I in?

The household's yearly income decides whether you are in the scheme and in which band:

Band	Yearly household income
EWS (economically weaker section)	up to Rs 3 lakh
LIG (lower income group)	above Rs 3 lakh, up to Rs 6 lakh
MIG (middle income group)	above Rs 6 lakh, up to Rs 9 lakh

A household with a yearly income above Rs 9 lakh is outside the interest subsidy on these conditions.

How big can the loan and the house be?

Only a loan up to Rs 25 lakh, on a house valued up to Rs 35 lakh, is eligible for the interest subsidy. The carpet area of the house must be up to 120 square metres. Carpet area is not the same as the built-up or super area that is often quoted in brochures, so check which figure is on your agreement before you rely on it.

How much is the subsidy?

The subsidy is 4% on the first Rs 8 lakh of the loan, for a tenure up to 12 years. A maximum interest subsidy of Rs 1.80 lakh is released, with a maximum net present value of Rs 1.50 lakh at a discount rate of 8.5%, to beneficiaries whose loan tenure is more than five years. It is released in five equal yearly instalments, and only loans sanctioned and disbursed on or after 1 September 2024 qualify.

Treat these as the published terms, not as an estimate for your loan. What you actually receive depends on your loan, its tenure and its status when each instalment is released.

Who is left out?

• A family that owns a pucca house. The family (husband, wife and unmarried sons and daughters) must not own a pucca house, in the name of any member, anywhere in India.
• A beneficiary who has had a government house. Someone who was allotted a house under any housing scheme of the Central Government, a State or Union Territory government or a local self-government in the last 20 years, in urban or rural areas, is not eligible.
• A second claim for the same property. The interest subsidy is provided only once for a property.
• A loan before 1 September 2024. Only loans sanctioned and disbursed on or after that date qualify.

Can I use it to buy a plot?

The subsidy is for buying, re-buying or building a house. A loan only to buy a plot is not one of the listed loan purposes. Self-construction described as plot + construction is listed. If you want to buy a plot and build on it, tell your lender that, and ask how it would record the loan.

How is the subsidy claimed?

1. You register on the Unified Web Portal and apply to a bank or other lending institution of your choice.
2. The lender checks your papers and uploads the claim.
3. The Central Nodal Agency re-validates it, and the Ministry releases the subsidy through the agency to the lender.
4. The lender credits the subsidy to your loan account.

The lender, not a builder or a consultant, files the claim, so ask your bank early how its process works.

Can builders take part?

Private builders can take part in the affordable housing in partnership vertical through whitelisted projects. Such projects must be registered under the Real Estate (Regulation and Development) Act, 2016. Our guide to RERA registration in Haryana explains that step. The conditions of the partnership route are different from the interest subsidy described here, and this guide does not cover them.

Which agency handles PMAY-U 2.0 in Haryana?

The State agency that handles PMAY-U 2.0 in Haryana is to be verified by our expert team. The State department is the Department of Housing for All, Haryana. For the latest on the Haryana process, check its website and ask your lender.

How can I check my own case?

Our free PMAY-U 2.0 checker takes your household income, loan, house value and carpet area, asks about a pucca house, earlier benefits and the purpose of the loan, and gives one of three answers: likely eligible, not eligible or check with your bank, with the reason for each point. It does not promise the subsidy.

How can our expert team help?

If you would like help with the papers, leave your details on the checker and our expert team will call you back. We help you get your papers ready for the lender you choose. We do not lend, we do not arrange or promise a loan, and the subsidy is claimed through your lender. For builders, our PMAY-U 2.0 buyer desk handles the first check and the checklist for your buyers. There is no price list because every case is different, so ask our expert team for a quote.