Pradhan Mantri Awas Yojana (PMAY) 2.0 - Urban: A Home Loan Interest Subsidy Scheme

Pradhan Mantri Awas Yojana (PMAY) 2.0 – Urban, a new and improved version of PMAY - 1.0, is a Government of India initiative designed provide affordable housing solutions to urban families across income groups – Economically Weaker Section (EWS), Middle-Income Group (MIG) and Low-Income Group (LIG). With this affordable housing scheme, you can avail up to ₹1.80 lakh subsidy on home loan interest.

Why Choose PMAY 2.0 (Urban)?

Get up to ₹1.80 lakh subsidy on home loan interest
Scheme includes houses valued up to ₹35 lakh

Home loans up to ₹25 lakh are eligible for interest subsidy

Who is Eligible for PMAY – Urban 2.0?

Subsidy Details	Economically Weaker Section (EWS)	Low-Income Group (LIG)	Middle-Income Group (MIG)
Annual Household Income	Up to ₹3 lakh p.a.	Up to ₹6 lakh p.a.	Up to ₹9 lakh p.a.
Interest Subsidy (% p.a.)	4% on the first ₹8 lakh of the loan for a tenure up to 12 years	4% on the first ₹8 lakh of the loan for a tenure up to 12 years	4% on the first ₹8 lakh of the loan for a tenure up to 12 years
Maximum Housing Loan Eligible for Subsidy	₹25 lakh	₹25 lakh	₹25 lakh
Maximum House Value	₹35 lakh	₹35 lakh	₹35 lakh
Maximum Carpet Area	120 sqm	120 sqm	120 sqm
Maximum Interest Subsidy Amount	₹1.80 lakh	₹1.80 lakh	₹1.80 lakh
Currently Own a Home?	No	No	No

How to Apply for PMAY-Urban 2.0?

Step 1: Apply for a Home Loan with Ujjivan Small Finance Bank

Step 2: Apply for the ISS subsidy, if eligible. Our representative will guide you through the process.

Step 3: Upon verification, the subsidy amount will be credited to your linked loan account.

Important Points to Consider Before Applying for PMAY - 2.0 (Urban)

Subsidy available for home loans sanctioned and disbursed from 1st September 2024 onward
Net Present Value (NPV) of subsidy is ₹1.50 lakh (discounted at 8.5%)
The subsidy amount will be released in five equal yearly instalments directly into the beneficiary's loan account
Subsidy disbursed only if the loan is active and more than 50% of the principal is outstanding
All beneficiaries (including family members) must have a linked Aadhaar or Aadhaar Virtual ID
Beneficiary must provide a self-undertaking under the ISS (Interest Subsidy/Subvention Scheme)

Beneficiaries must register their demand via a unified web portal
Approved layout plan required per State/UT guidelines (exceptions may apply)
Subsidy can only be availed once per property. Subsequent buyers cannot claim the subsidy.
No subsidy eligibility if the loan is transferred to another financial institution after claiming the subsidy.
If subsidy was not claimed from the original lender, it cannot be claimed after loan transfer

FAQs

PMAY – Urban 2.0 is a Government scheme that aims to provide affordable housing solutions for first-time homebuyers belonging to the Economically Weaker Section (EWS), Lower-Income Group (LIG) and Middle-Income Group (MIG) category. It’s a new and improved version of PMAY 1.0.

You can get a home loan interest subsidy of up to ₹1.80 lakh under this scheme.

PMAY 2.0 (Urban) applies to all statutory towns (as per Census 2011), newly notified towns, and areas within planning authority boundaries. You can find the updated list of statutory towns available on the NHB portal.

For completed houses, geo-tagging done after 1st instalment release. For construction/under-construction houses, geo-tagging done before each instalment release.

Net Present Value (NPV) is a metric used to determine the profitability of real estate investment. It is calculated by subtracting the present value of cash outflows from the present value of cash inflows over a period of time. The current Net Present Value of subsidy is ₹1.5 lakh – discounted at 8.5%.