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Owning a home in India has historically been out of reach for a large section of the population. PMAY (Pradhan Mantri Awas Yojana) was designed to change that — and PMAY 2.0, active since 2024, has significantly expanded the scheme's coverage with revised income categories, higher subsidy amounts, and broader urban reach.
If you're planning a home purchase in 2026 and earn under ₹18 lakhs annually, you may qualify for a subsidy that could reduce your EMI by ₹2,000–₹4,000 every month for 20 years. Before you choose a property, use a home loan eligibility calculator to check whether your income and obligations support the loan size you need.
How PMAY 2.0 subsidy works
The government provides an interest subsidy on your home loan under the Credit Linked Subsidy Scheme (CLSS). This means they reduce your loan's effective interest rate — not the principal — by providing an upfront lump-sum credit to your lender, which reduces your outstanding loan amount.
The subsidy is front-loaded: calculated on the Net Present Value (NPV) of the interest benefit and applied to your loan principal on day one. This directly lowers your EMI for the entire loan tenure.
Subsidy categories at a glance
EWS
Economically Weaker Section
Annual household income
Up to ₹3 lakhs
Max carpet area
30 sq. m
Interest subsidy
6.5% p.a.
Eligible loan amount
Up to ₹6 lakhs
₹2.67 lakhs
Max subsidy (NPV)
LIG
Low Income Group
Annual household income
₹3 – ₹6 lakhs
Max carpet area
60 sq. m
Interest subsidy
6.5% p.a.
Eligible loan amount
Up to ₹6 lakhs
₹2.67 lakhs
Max subsidy (NPV)
MIG I
Middle Income Group I
Annual household income
₹6 – ₹12 lakhs
Max carpet area
160 sq. m
Interest subsidy
4% p.a.
Eligible loan amount
Up to ₹9 lakhs
₹2.35 lakhs
Max subsidy (NPV)
MIG II
Middle Income Group II
Annual household income
₹12 – ₹18 lakhs
Max carpet area
200 sq. m
Interest subsidy
3% p.a.
Eligible loan amount
Up to ₹12 lakhs
₹2.30 lakhs
Max subsidy (NPV)
Note: Income refers to combined household income including spouse. NPV subsidy amounts are indicative at a discount rate of 9%.
Who is eligible?
To qualify for PMAY 2.0 subsidy, all of the following must be true:
- The applicant or their family does not own a pucca house anywhere in India
- You have not previously availed any central government housing scheme benefit
- The property is in an urban or notified area (PMAY-Urban) or a rural village (PMAY-Gramin)
- The property is being purchased, constructed, or renovated — not for investment/rental-only purposes
- For EWS/LIG: at least one female member of the household must be a co-owner or sole owner
- The home loan must be availed from a PMAY-registered lending institution (most major banks and HFCs qualify)
⚠ Common disqualification
Many applicants are rejected because a family member (parent, spouse, or adult child in the same household) owns property in their name. The "no pucca house" rule applies to the entire household, not just the applicant.
Check if you're eligible
Quick eligibility check
Answer 3 questions to see which PMAY category you may fall under.
How to apply for PMAY 2.0 subsidy
The good news: you don't apply directly to the government. You apply through your home loan lender, who submits your CLSS claim to the National Housing Bank (NHB) or HUDCO on your behalf.
- Confirm eligibility. Check income, property ownership status, and scheme history before anything else.
- Choose a PMAY-registered lender. All major banks (SBI, HDFC, ICICI, Axis, PNB) and most HFCs are registered. Ask the lender to confirm they process CLSS claims.
- Fill the PMAY self-declaration form alongside your home loan application. This is a simple declaration of your household income, ownership status, and prior scheme usage.
- Submit income proof. For salaried: Form 16, salary slips. For self-employed: 2 years' ITR with computation sheets.
- Lender submits claim to NHB/HUDCO. After loan disbursement, your lender files the CLSS claim on your behalf. This takes 30–90 days.
- Subsidy is credited to your loan account. The lump-sum subsidy amount (e.g. ₹2.67 lakhs) is directly credited to your loan principal, reducing your outstanding balance and monthly EMI.
✓ Pro tip
When applying for a home loan through Easiloan, mention that you want PMAY CLSS benefit at the time of application. Our team will ensure your lender processes the claim and you don't miss the subsidy.
What documents are needed?
- Aadhar card (mandatory for PMAY)
- PAN card
- Income proof (Form 16 / ITR for self-employed)
- Bank statements (last 6 months)
- Property documents
- Self-declaration of household income and ownership
- Passport photo
Frequently asked questions
Can I get PMAY subsidy on a resale flat?
Yes, PMAY CLSS applies to resale properties as well, not just new construction, as long as you meet all eligibility conditions and the property is a pucca residential unit in a notified urban area.
If my income is ₹8 lakhs but my wife earns ₹5 lakhs, which category do we fall in?
For PMAY, household income means the combined annual income of both spouses. In this case: ₹8L + ₹5L = ₹13 lakhs — you would fall under MIG II (₹12L–₹18L). Income from all household members who contribute to the EMI is counted.
I already availed PMAY benefit on my first home. Can I claim it again?
No. PMAY CLSS benefit can only be availed once per household. If you or any household member has previously received a central government housing subsidy, you are ineligible for another PMAY benefit.
Is PMAY subsidy taxable?
The PMAY interest subsidy itself is not treated as income and is not taxable in your hands. It is applied directly to your loan principal. The tax deductions under Section 80C and Section 24(b) remain unaffected and continue as normal.
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