PMAY-Urban 2.0 Interest Subsidy: Who Qualifies in Mumbai and How It Works

How the subsidy works

• A 4% interest subsidy on home loans of up to Rs 25 lakh.
• The subsidy goes through the lender (banks and housing finance companies that have signed up), not to you as cash.
• The scheme guidelines also cap the value of the house. Check the current cap with your lender before you book, because in Mumbai this is often where buyers fall out of the scheme.

Practical points for Mumbai buyers

• Apply through the lender. Ask at the loan application stage whether the lender participates in PMAY-U 2.0 ISS.
• Income is household income. Keep your income proofs consistent with what you declare.
• "No pucca house" means anywhere. A flat owned by you or your spouse in another city can disqualify you.
• Do not let the subsidy drive the purchase. A flat that is wrong for you is expensive even with a subsidy.

If you are working out loan size, read how much a bank will lend against a Mumbai flat.

Frequently asked questions

What is the income limit for PMAY-U 2.0 interest subsidy?

Annual household income up to Rs 9 lakh: EWS up to Rs 3 lakh, LIG Rs 3 lakh to Rs 6 lakh, and MIG Rs 6 lakh to Rs 9 lakh.

How much subsidy does PMAY-U 2.0 give?

A 4% interest subsidy on home loans of up to Rs 25 lakh, for eligible families who do not own a pucca house anywhere in India.

Sources

• Business Today: PMAY-Urban 2.0 eligibility and interest subsidy
• PIB: PMAY-Urban 2.0 scheme document
• Bank of Maharashtra: PMAY-U 2.0 Interest Subsidy Scheme

This is general information, not legal or tax advice. Rules change, so check your own case with a lawyer or CA.

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Warmly,
Yanik