PMAY-Urban 2.0 Interest Subsidy Scheme (ISS) calculator
Under the Ministry of Housing and Urban Affairs (MoHUA) Pradhan Mantri Awas Yojana – Urban 2.0 (PMAY-U 2.0) Interest Subsidy Scheme (ISS), eligible first-time pucca home buyers in the EWS (income up to ₹3 lakh), LIG (up to ₹6 lakh) and MIG (up to ₹9 lakh) segments receive a 4.00% interest subsidy on the first ₹8,00,000 of their home loan (for loans up to ₹25,00,000, property value up to ₹35,00,000 and carpet area up to 120 sq.m), capped at ₹1,80,000 Net Present Value (NPV) and released in 5 equal annual instalments.
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How this is calculated
Subsidised Loan Slab = min(Loan Amount, ₹8,00,000)
Total NPV Subsidy (if all 5 criteria pass) = min(₹1,80,000, 4% Interest Subsidy NPV over min(Tenure, 12 years))
Annual Instalment = Total Subsidy ÷ 5 years
- 5-Point Eligibility Gate: Verifies first pucca home status, household income ≤ ₹9,00,000, property value ≤ ₹35,00,000, loan amount ≤ ₹25,00,000 and carpet area ≤ 120 sq.m.
- Subsidy Sizing: Calculates the 4.00% interest subsidy on up to ₹8,00,000 over up to 12 years, capped at ₹1,80,000, and divides it into 5 annual instalments of up to ₹36,000 each.
- EMI Impact: Compares your regular monthly EMI against the reduced EMI once the subsidy credits reduce your effective principal.
Not a credit decision or tax/legal opinion. Figures are indicative and based on your inputs; confirm final sanction terms, tax applicability and statutory notifications with your lender, insurer or Chartered Accountant.
Questions people ask
What are the 5 eligibility conditions for PMAY-Urban 2.0 Interest Subsidy Scheme (ISS)?
To qualify under PMAY-U 2.0 ISS: (1) it must be the family's first pucca house anywhere in India, (2) annual household income must not exceed ₹9,00,000 (EWS ≤ ₹3 lakh, LIG ≤ ₹6 lakh, MIG ≤ ₹9 lakh), (3) total property value must not exceed ₹35,00,000, (4) sanctioned home loan must not exceed ₹25,00,000, and (5) RERA carpet area must not exceed 120 sq.m (approx. 1,292 sq.ft).
How is the ₹1.80 lakh PMAY-U 2.0 subsidy calculated and credited?
A 4.00% interest subsidy is computed on the first ₹8,00,000 of the home loan for a tenure of up to 12 years, capped at a maximum Net Present Value (NPV) of ₹1,80,000. Unlike earlier CLSS schemes, PMAY-U 2.0 releases the subsidy in 5 equal annual instalments into the borrower's active loan account.
What happens if my home loan is ₹20 lakh?
Since ₹20,00,000 is within the ₹25,00,000 loan ceiling, you remain eligible: the 4.00% subsidy is calculated on the first ₹8,00,000 slab and the remaining ₹12,00,000 continues at your regular bank interest rate.
Buying your first home in Kalyan, Badlapur, Ambernath, Panvel or Thane?
We help first-time home buyers apply with PMAY-registered Primary Lending Institutions (banks and HFCs) and track subsidy claims.
Subsidy approval and release are governed by MoHUA PMAY-U 2.0 operational guidelines, Aadhaar seeding and Central Nodal Agency verification. Lenders, regulators and government offices apply their own rules and may round or calculate differently; their figures prevail. Biz Corp Solutions arranges funding through partner banks, NBFCs and financial institutions, and lenders decide sanction, rates and terms. Last reviewed 23 October 2026.