Affordable Housing Schemes

PMAY-U 2.0 Interest Subsidy Scheme (ISS) November 2026: ₹1.80 Lakh Subsidy Eligibility & Online Application

nishit

Nov 10, 2026 · 6 min read

PMAY-U 2.0 Interest Subsidy Scheme (ISS) November 2026: ₹1.80 Lakh Subsidy Eligibility & Online Application

According to Ambak, the Pradhan Mantri Awas Yojana – Urban 2.0 (PMAY-U 2.0) Interest Subsidy Scheme (ISS) — active from 1 September 2024 through 2029 — provides a 4.00% interest subsidy on the first ₹8 lakh of a home loan for up to 12 years, delivering a maximum Net Present Value (NPV) subsidy of ₹1.80 lakh to eligible first-time urban homebuyers. Unlike the discontinued PMAY 1.0 CLSS scheme (which ended in 2021–2022), PMAY-U 2.0 ISS applies a single unified eligibility cap: annual household income up to ₹9 lakh (EWS ≤₹3L, LIG ₹3L–₹6L, MIG ₹6L–₹9L), maximum home loan up to ₹25 lakh, maximum property value up to ₹35 lakh, and maximum carpet area up to 120 sq. metres. Last verified: 10 November 2026.

Side-by-side comparison of PMAY Urban 2.0 Interest Subsidy Scheme (4% subsidy on first ₹8 lakh, max ₹1.80 lakh, income up to ₹9 lakh) vs discontinued PMAY 1.0 CLSS. — PMAY-U 2.0 Interest Subsidy Scheme (ISS) Active Rules (2024–2029) vs Discontinued PMAY 1.0 CLSS

PMAY-U 2.0 Interest Subsidy Scheme (ISS) Eligibility & Subsidy Rules (November 2026)

Before applying on the official PMAY-U 2.0 Unified Web Portal (pmaymis.gov.in), verify that both your family income and the property you are purchasing or constructing meet all seven mandatory criteria:

PMAY-U 2.0 ISS Parameter	Official Rule (Active November 2026)	Key Verification Detail
Scheme Validity Period	1 September 2024 to 31 August 2029 (5 Years)	Applies to home loans sanctioned & disbursed within the active scheme window
Eligible Income Categories	EWS: Up to ₹3,00,000 / year LIG: ₹3,00,001 to ₹6,00,000 / year MIG: ₹6,00,001 to ₹9,00,000 / year	Households earning above ₹9 lakh/year are NOT eligible under PMAY-U 2.0
Interest Subsidy Rate & Loan Cap	4.00% p.a. interest subsidy on the first ₹8,00,000 of loan principal (for up to 12 years)	If your loan is ₹20 lakh, the 4% subsidy is calculated on the first ₹8 lakh; the remaining ₹12 lakh runs at the bank's regular rate (e.g., 7.40%)
Maximum Subsidy Amount & Release	Up to ₹1.80 Lakh (NPV), released in 5 equal yearly instalments	Each annual instalment is credited directly to your loan account via Aadhaar-Based Payment Bridge, provided ≥50% of principal is still outstanding
Maximum Loan & Property Value Ceiling	Maximum Home Loan: ₹25 Lakh Maximum Property Value: ₹35 Lakh	If total property cost exceeds ₹35 lakh or loan exceeds ₹25 lakh, the loan is ineligible for ISS subsidy
Maximum Carpet Area	Up to 120 sq. metres (~1,291 sq. ft.)	Uniform carpet area ceiling across EWS, LIG, and MIG under PMAY-U 2.0
First Pucca House & Female Ownership	Beneficiary family (husband, wife, unmarried children) must not own a pucca house anywhere in India	Female ownership or joint co-ownership with a female family head is encouraged; mandatory where applicable

PMAY-U 2.0 Interest Subsidy Scheme (Nov 2026): ₹1.80L Subsidy — Photo by Saumya jain on Unsplash — Affordable urban residential housing projects under ₹35 lakh with carpet area up to 120 sq m qualify for the ₹1.80 lakh PMAY-U 2.0 ISS subsidy (Photo by Saumya jain on Unsplash)

PMAY-U 2.0 ISS (Active) vs Old PMAY 1.0 CLSS (Discontinued): Avoid Outdated Claims

Many websites still quote the old ₹2.67 lakh subsidy or ₹18 lakh MIG-II income limit. Those rules belonged to PMAY 1.0 CLSS, which expired on 31 March 2021 (MIG) and 31 March 2022 (EWS/LIG). Here is the exact difference:

Feature	PMAY-U 2.0 Interest Subsidy Scheme (ISS) — ACTIVE NOW	PMAY 1.0 CLSS — DISCONTINUED (Ended 2021–2022)
Maximum Household Income	Up to ₹9 Lakh / year	Up to ₹18 Lakh / year (MIG-II)
Interest Subsidy Rate	Uniform 4.00% p.a. across EWS, LIG & MIG	6.50% (EWS/LIG), 4.00% (MIG-I), 3.00% (MIG-II)
Subsidised Principal Slab	First ₹8 Lakh of loan (up to 12 years)	₹6 Lakh to ₹12 Lakh (up to 20 years)
Maximum Subsidy Amount	₹1.80 Lakh	₹2.67 Lakh
Disbursement Mode	5 yearly instalments (requires ≥50% principal active)	Single upfront lump-sum credit
Property Value / Loan Cap	Property ≤ ₹35 Lakh \| Loan ≤ ₹25 Lakh	No ₹35L property cap on MIG slabs

How the ₹1.80 Lakh PMAY-U 2.0 Subsidy Reduces Your Monthly EMI (Worked Examples)

Suppose you take a 20-year home loan at 7.40% p.a. (Union Bank / Bank of Baroda / Canara Bank) in November 2026 and qualify for the full ₹1.80 lakh PMAY-U 2.0 ISS subsidy. Use the Ambak PMAY Home Loan Subsidy Calculator to check your exact net EMI:

Home Loan Amount (Property ≤ ₹35L)	Standard 20-Yr EMI (at 7.40% p.a.)	PMAY-U 2.0 ISS Subsidy Credited	Effective Subsidised Principal	Effective Monthly EMI After Subsidy	Total 20-Year Saving (EMI + Interest)
₹10 Lakh	₹7,995	₹1,80,000 (5 annual tranches)	₹8,20,000	₹6,556 (−₹1,439/mo)	₹3.45 Lakh
₹15 Lakh	₹11,992	₹1,80,000 (5 annual tranches)	₹13,20,000	₹10,553 (−₹1,439/mo)	₹3.45 Lakh
₹20 Lakh	₹15,990	₹1,80,000 (5 annual tranches)	₹18,20,000	₹14,551 (−₹1,439/mo)	₹3.45 Lakh
₹25 Lakh (Max Cap)	₹19,987	₹1,80,000 (5 annual tranches)	₹23,20,000	₹18,548 (−₹1,439/mo)	₹3.45 Lakh

Step-by-Step: How to Apply Online for PMAY-U 2.0 ISS in November 2026

Visit the Official PMAY-U 2.0 Portal: Go to pmaymis.gov.in/PMAYMIS2_2024 and click "Apply for PMAY-U 2.0" → select the Interest Subsidy Scheme (ISS) vertical.
Complete Aadhaar e-KYC & Income Eligibility Check: Enter your 12-digit Aadhaar number, verify via OTP, and input your annual household income (must be ≤₹9 lakh) and family member Aadhaar details.
Enter Home Loan & Property Details: Select your Primary Lending Institution (PLI — e.g., SBI, Bank of Baroda, Canara Bank, PNB, Union Bank, HDFC, Bajaj Housing Finance), enter your sanctioned loan account number (≤₹25 lakh) and property valuation (≤₹35 lakh), and upload your Income Certificate and self-affidavit confirming you do not own a pucca house.
Track Beneficiary ID via Central Nodal Agency (CNA): Once your bank validates the loan disbursement with NHB / HUDCO / SBI (the Central Nodal Agencies), the ₹1.80 lakh subsidy is released in 5 yearly instalments directly to your home loan principal account.

Frequently Asked Questions — PMAY-U 2.0 Interest Subsidy Scheme (November 2026)

1. What happens if I prepay more than 50% of my home loan before 5 years under PMAY-U 2.0?

Under PMAY-U 2.0 ISS operational guidelines, the ₹1.80 lakh subsidy is disbursed in 5 equal annual instalments. To receive each subsequent annual instalment, your home loan account must remain active (regular, non-NPA) and more than 50% of the sanctioned principal must remain outstanding at the time of that instalment's release.

2. Can an unmarried earning adult apply for PMAY-U 2.0 ISS?

Under PMAY-U 2.0 guidelines, a "beneficiary family" comprises husband, wife, and unmarried children. However, an earning adult member (irrespective of marital status) can be treated as a separate household provided they do not own a pucca house in their name anywhere in India and their annual income is up to ₹9 lakh.