Home Loans & Finance
What is PMAY? (And Why It Probably Won't Help You)
Half the property websites in India are still describing a scheme that ended in 2022. Here is what actually exists — and the honest reason it probably doesn't apply to you.
The short answer
The old CLSS — the one that gave up to ₹2.67 lakh — ENDED IN 2022. A great many websites still describe it. It does not exist.
What exists now is PMAY-U 2.0's Interest Subsidy Scheme: up to ₹1.80 lakh, for loans sanctioned on or after 1 September 2024.
And the property value must not exceed ₹35 lakh — which, being honest, excludes almost every apartment in Bengaluru, Mumbai, Hyderabad or Gurugram.
First — the old scheme is dead
The Credit Linked Subsidy Scheme (CLSS) under PMAY-U 1.0 gave subsidies of 6.5%, 4% and 3% on loans up to ₹6 lakh, ₹9 lakh and ₹12 lakh — worth up to roughly ₹2.67 lakh.
CLSS for MIG ended 31 March 2021. The CLSS vertical as a whole ended 31 March 2022.
An enormous amount of the Indian property internet still describes it as though it were live, complete with subsidy calculators. It is not live. It has not been live for years.
If a broker or a builder tells you that you will get ₹2.67 lakh under PMAY, they are either out of date or misleading you. Ask them which scheme, and when it was notified.
What PMAY-U 2.0 actually gives
PMAY-U 2.0 launched on 1 September 2024 and runs for five years. Its Interest Subsidy Scheme (ISS) is the part relevant to a home loan borrower.
| Subsidy | 4% on the first ₹8 lakh of the loan, for up to 12 years |
|---|---|
| Maximum benefit | ₹1.80 lakh (NPV ₹1.50 lakh) |
| How it's paid | 5 annual instalments of ₹36,000, credited directly to your loan account, reducing the principal |
| Maximum loan | ₹25 lakh |
| Maximum property value | ₹35 lakh |
| Household income | Up to ₹9 lakh a year |
| Loan sanctioned | On or after 1 September 2024 |
| Conditions on release | The loan must be active (not an NPA), and more than 50% of the principal must still be outstanding at the time of each release |
Who qualifies
- First-time buyer. You must not own a pucca house anywhere in India — you, your spouse, or your unmarried children.
- Household income up to ₹9 lakh a year. The "family" is husband, wife, and unmarried sons and daughters.
- Property in an urban area — a statutory town.
- Property value up to ₹35 lakh, loan up to ₹25 lakh.
- Aadhaar for all family members.
- Registration on the unified PMAY-U 2.0 web portal.
The honest bit
The property value cap is ₹35 lakh.
In Bengaluru, Mumbai, Hyderabad, Pune, Chennai or Gurugram — the cities most apartment buyers are actually looking in — very little residential property costs ₹35 lakh or less.
And the household income cap of ₹9 lakh excludes most dual-income professional households in those cities.
So we are going to say plainly what a great many property websites won't: if you are buying a metro apartment, PMAY-U 2.0 almost certainly does not apply to you.
It is a scheme aimed at genuinely affordable housing — smaller towns, smaller homes, lower incomes. That is a legitimate and important thing for it to be aimed at. It is simply not aimed at you, and it is better to know that now than to build a budget around ₹1.8 lakh that never arrives.
Where it CAN help: a genuinely affordable home in a Tier 2 or Tier 3 town. A modest first home on the outskirts. A household under ₹9 lakh buying under ₹35 lakh. For those buyers it is real money, and it is worth the paperwork.
How to apply
- Check eligibility on the official PMAY-U 2.0 portal — income, property value, first-time buyer status.
- Register your demand on the unified web portal. Aadhaar authentication is required.
- Apply for a home loan with a Primary Lending Institution registered under PMAY.
- Submit Aadhaar for all family members, income proof (a self-certificate or affidavit is accepted), and the property documents.
- The subsidy is credited by the NHB to your loan account, in five annual instalments, reducing the principal.
- Keep the loan current. The subsidy is released only if the loan is active and more than 50% of the principal is still outstanding.
Apply through the official PMAY-U portal and a registered lending institution.
Nobody should be charging you a fee to apply for a government subsidy. If someone offers to 'get you PMAY' for a commission, that is not a service — it is a warning sign.
Home loan rates and the RBI's repo rate move. A page that says 'the rate is X%' is wrong within months, and quietly misleads everyone who reads it afterwards.
So we explain how the mechanism works — which does not change — and leave the number to you.
For the current repo rate, check the RBI's own website. For current home loan rates, check three or four lenders directly. Both take five minutes, and both are more reliable than anything a content site tells you.
Frequently asked questions
Is PMAY still available in 2026?
PMAY-U 2.0 is, having launched on 1 September 2024 and running for five years. But the OLD Credit Linked Subsidy Scheme — the one that gave up to Rs 2.67 lakh — ended in 2022, and a great deal of the Indian property internet still describes it as though it were live. It is not.
How much subsidy does PMAY-U 2.0 give?
Up to Rs 1.80 lakh — a 4% subsidy on the first Rs 8 lakh of the loan, for up to 12 years, credited to your loan account in five annual instalments of Rs 36,000. That is considerably less than the old CLSS, which gave up to about Rs 2.67 lakh.
Who is eligible for PMAY-U 2.0?
First-time buyers with a household income up to Rs 9 lakh a year, buying an urban property valued at up to Rs 35 lakh with a loan up to Rs 25 lakh, sanctioned on or after 1 September 2024. You must not own a pucca house anywhere in India.
Will PMAY help me buy a flat in Bengaluru or Mumbai?
Almost certainly not, and we would rather say so plainly. The property value cap is Rs 35 lakh, and very little residential property in Bengaluru, Mumbai, Hyderabad, Pune, Chennai or Gurugram costs that or less. The Rs 9 lakh household income cap also excludes most dual-income professional households in those cities. PMAY-U 2.0 is aimed at genuinely affordable housing in smaller towns — which is a legitimate thing for it to be aimed at, but it is not aimed at you.
How do I apply for PMAY?
Through the official PMAY-U 2.0 portal and a registered lending institution. Register your demand, complete Aadhaar authentication, apply for a home loan with a Primary Lending Institution, and submit income and property documents. Nobody should be charging you a fee to apply for a government subsidy — if someone offers to 'get you PMAY' for a commission, that is a warning sign.