PMAY-U 2.0 Home Loan Interest Subsidy Calculator (India)
First home in a town or city? See whether PMAY-U 2.0 subsidises your loan, and how much.
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- Free preview: the interest subsidy in full, with every eligibility check, your income category and the first rows of the instalments; every other figure is hidden.
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PMAY-U 2.0 Interest Subsidy Scheme · Scheme Guidelines, section 5.4 · Rules used
Eligibility
The five instalments
| Instalment | Amount | Loan after it | EMI after |
|---|
Rules used and official sources
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Results are estimates for general information and planning, not financial advice. Banks and institutions may calculate differently (rounding, fees, rate changes). Confirm figures with your lender or a qualified adviser before deciding.
About the PMAY-U 2.0 Home Loan Interest Subsidy Calculator (India)
The Interest Subsidy Scheme (ISS) of Pradhan Mantri Awas Yojana – Urban 2.0 helps families in towns and cities that do not yet own a pucca house: on a home loan of up to ₹25 lakh for a house worth up to ₹35 lakh, with a carpet area up to 120 sq m, the Government pays a subsidy at 4% a year on the first ₹8 lakh for up to 12 years — at most ₹1.80 lakh, worth ₹1.50 lakh in present value at 8.5%, credited to the loan in five yearly instalments (PMAY-U 2.0 Scheme Guidelines, section 5.4). It is for EWS, LIG and MIG households with an annual income of up to ₹9 lakh, on loans sanctioned and disbursed on or after 1 September 2024.
Enter your household income, the property, and the loan amount, rate, tenure and date. The calculator checks each condition of the scheme, works out the subsidy for your loan, lays out the five instalments with the principal before and after each, and shows what they do to your loan: how many months sooner it ends if you keep the EMI, or how far the EMI falls if you keep the tenure. Everything is worked out in your browser.
How to use it
- Enter your household’s yearly income — you, your spouse and unmarried children — and the price and carpet area of the house.
- Enter the home loan: amount, interest rate, tenure in years and the date it was sanctioned and first disbursed.
- Untick any condition of the scheme you do not meet: an urban house, no pucca house in the family, no house under a government scheme in the last 20 years, the first claim on the property, no balance transfer.
- Choose whether the instalments should shorten the loan or lower the EMI.
- Read the eligibility checks, the subsidy, the instalments and the effect on your loan. Copy the summary or download the schedule as CSV — with a pass, or after unlocking this result.
Examples
Eligible for the maximum: about ₹1,80,000 in five instalments of ₹36,000. Keeping the EMI of ₹17,356, the loan ends 41 months sooner.
The subsidy works on the whole ₹5 lakh — five eighths of ₹8 lakh — so about ₹1,12,500, in instalments of ₹22,500.
The fourth and fifth instalments are not released: by then less than half the principal is outstanding.
Not eligible: the MIG category ends at ₹9 lakh of annual household income.
Who is eligible
From sections 1, 3 and 5.4 of the guidelines:
- Income: EWS up to ₹3 lakh a year, LIG ₹3–6 lakh, MIG ₹6–9 lakh, for the household (husband, wife, unmarried sons and daughters), declared by self-certificate.
- No pucca house anywhere in India in the name of anyone in the family, and no house allotted under a Central, State or local government housing scheme in the last 20 years.
- The house: in an urban area, worth up to ₹35 lakh, carpet area up to 120 sq m; the loan up to ₹25 lakh, with a tenure of more than five years.
- The loan: sanctioned and disbursed on or after 1 September 2024, by a lending institution that takes part in the scheme.
- Once per property: a later buyer cannot claim it again, family members on the same property count as one family, and the subsidy cannot be claimed after a balance transfer to another lender.
How the subsidy is paid
The subsidy is 4% a year on the principal of the loan, on at most ₹8 lakh, for 12 years or the loan term if shorter; on a loan under ₹8 lakh it works on the loan amount (Annexure 1C). It is credited to your loan account in five yearly instalments, each reducing the principal, so you pay interest only on the rest — but an instalment is released only while the loan is running and more than 50% of the principal is outstanding (section 5.4.10). Apply through the scheme’s unified web portal and your lender.
How this calculator works out your subsidy
The guidelines fix the rate, the caps, the 8.5% discount rate and the instalments, but not the lender’s working. The calculator gives the maximum — ₹1.80 lakh released, ₹1.50 lakh present value — on ₹8 lakh over 12 years, and scales it for a smaller loan or a shorter term by the present value at 8.5% of the 4% interest subsidy on your eligible loan (the EMI at your rate less the EMI at four points lower). It then credits each instalment to the loan month by month and recalculates the end of the loan, or the EMI.
Limitations
- An estimate: your lending institution and the Central Nodal Agency work out and release the actual subsidy.
- The first instalment is assumed one month after the disbursement (you can change it); the rest a year apart.
- Loans disbursed in stages, rate changes over the loan and prepayments of your own are not modelled.
- The other parts of PMAY-U 2.0 — beneficiary-led construction, affordable housing in partnership and rental housing — are not covered.
Privacy
Everything happens in your browser. What you enter or open here is not uploaded or stored by MySmartCoPilot.
Frequently asked questions
What do I get without a pass?
Without a pass, PMAY-U 2.0 Home Loan Interest Subsidy Calculator (India) shows the interest subsidy in full, with every eligibility check, your income category and the first rows of the instalments; every other figure is hidden. Until you unlock it, the result can’t be downloaded or copied. A Pro, Premium or Ultimate pass, a one-time payment that never renews, unlocks the full result. The pricing page lists the passes and their prices.
How much subsidy do I get under PMAY-U 2.0?
At most ₹1.80 lakh, paid in five yearly instalments into your loan account, for a loan of ₹8 lakh or more with a tenure of 12 years or more. A smaller loan or a shorter tenure gets less.
What is the income limit for the PMAY interest subsidy?
₹9 lakh of annual household income. Up to ₹3 lakh is EWS, ₹3–6 lakh LIG and ₹6–9 lakh MIG; all three get the same 4% subsidy under the Interest Subsidy Scheme.
Can I get the subsidy on a ₹30 lakh loan?
No. The loan must be ₹25 lakh or less, for a house worth up to ₹35 lakh. Within that, the subsidy works on the first ₹8 lakh.
Is the subsidy paid upfront?
It is paid in five yearly instalments, each credited to your loan account and deducted from the principal. You then pay EMIs on the reduced principal — or, if your lender keeps the EMI the same, the loan ends sooner.
Can I claim the subsidy if I already own a house?
Not if anyone in your family owns a pucca house anywhere in India, or was allotted a house under a government housing scheme in the last 20 years.