Under the Interest Subsidy Scheme (ISS) vertical of PMAY-U 2.0, subsidy is provided on home loans
sanctioned and disbursed on 01.09.2024 or after to eligible beneficiaries of EWS/LIG/MIG segments
for purchase/repurchase/construction of houses. Households belonging to EWS, LIG and MIG
categories, with an annual income of up to ₹3 lakh, ₹6 lakh and ₹9 lakh, respectively will be eligible
to avail the benefit of the Scheme.
A maximum release of interest subsidy of ₹1.80 lakh having maximum NPV of ₹1.50 shall be
provided to eligible beneficiaries having a loan tenure of more than five years. Households having
income up to ₹9 lakh, loan value up to ₹25 lakh for property value up to ₹35 lakh would be eligible
for a subsidy at 4.0 % on first ₹8 lakh for a tenure up to 12 years. The maximum carpet area of
houses under this component shall be up to 120 sqm.
For availing the benefit under ISS vertical, eligible beneficiaries will be required to register their
demand through Unified Web Portal. Subsequently, the application will be forwarded to the
concerned PLIs for further necessary action as per his/her eligibility criteria.
Subsidy will be released in 5-yearly instalments through DBT in loan accounts of beneficiaries,
provided loan is active at the time of release of subsidy and more than 50% principal is outstanding.
Subsidy will be credited by the PLI to the borrower’s account upfront by deducting it from the
principal loan amount of the borrower. The borrower will pay EMI as per lending rates on the
remainder of the principal loan amount.
Geo-tagging of houses along with their geo-spatial location is required to be done by the respective
PLI/beneficiary as per the payment plan.