How much home loan subsidy does PMAY give?

Under PMAY-Urban 2.0 the subsidy is 4% a year on the first Rs 8 lakh of the loan. It runs for 5 years, up to Rs 1.8 lakh in all. The loan may be up to Rs 25 lakh. The house may cost up to Rs 35 lakh.

Who qualifies for the PMAY interest subsidy?

Families with a yearly income up to Rs 9 lakh, in the EWS, LIG or MIG group. They must own no pucca house anywhere in India. The house must be their first, in an urban area. The carpet area is capped by income group.

Is the subsidy paid to me or to the bank?

To the bank, which credits it to your loan account. Your outstanding principal drops, so the EMI or the tenure falls.

Can I get a state subsidy on top of PMAY?

Only where the state pays one. Most states do not. The calculator lists any state scheme with an official order and says so where there is none.

What about PMAY-Gramin?

PMAY-Gramin pays a construction grant, not a loan subsidy. The subsidy calculator covers it under 'Building or buying a house'.

Is the figure guaranteed?

No. It follows the scheme guidelines. The bank and the nodal agency verify income and the house before the subsidy is credited.

Every figure from an official scheme text. Checked 2026-11-02.

Home Loan Subsidy Calculator: know how much interest subsidy you will get on your home loan

Enter your income group, house cost and loan. See the PMAY-Urban 2.0 interest subsidy, any state top-up, and how to apply.

4: schemes
2: states with a top-up
10: rules
Rs 1.8 lakh: PMAY cap

The short answer

PMAY-Urban 2.0 pays 4% a year on the first Rs 8 lakh of a home loan. It runs for 5 years, up to Rs 1.8 lakh. It is for first-time buyers with a family income up to Rs 9 lakh a year. The loan may be up to Rs 25 lakh and the house up to Rs 35 lakh. The subsidy goes to the bank and cuts your outstanding loan. A few states add their own scheme.

Example: a Rs 20 lakh loan at 8.5% over 20 years. It gets the full Rs 1.8 lakh over 5 years, because the subsidy is worked out on the first Rs 8 lakh.

1Where is the house?

StateRural areaA village, or a town under 20,000 people.

2About the borrower

CategoryWomanMinority communityMuslim, Christian, Sikh, Buddhist, Jain or Parsi.Person with disabilityHousehold income groupFirst pucca house for the familyPMAY needs the family to own no pucca house in India.

3The loan

House costRs lakhCarpet areasq mPMAY-U 2.0 caps the carpet area by income group.Home loanRs lakhInterest rate% a yearTenureyears

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How it works

1
Pick your state
Any state top-up applies on top of the central scheme.
2
Describe the borrower
Income group and first-house status decide eligibility.
3
Enter the loan
House cost, carpet area, loan size, rate and tenure set the amount.

Questions people ask

How much home loan subsidy does PMAY give?: Under PMAY-Urban 2.0 the subsidy is 4% a year on the first Rs 8 lakh of the loan. It runs for 5 years, up to Rs 1.8 lakh in all. The loan may be up to Rs 25 lakh. The house may cost up to Rs 35 lakh.
Who qualifies for the PMAY interest subsidy?: Families with a yearly income up to Rs 9 lakh, in the EWS, LIG or MIG group. They must own no pucca house anywhere in India. The house must be their first, in an urban area. The carpet area is capped by income group.
Is the subsidy paid to me or to the bank?: To the bank, which credits it to your loan account. Your outstanding principal drops, so the EMI or the tenure falls.
Can I get a state subsidy on top of PMAY?: Only where the state pays one. Most states do not. The calculator lists any state scheme with an official order and says so where there is none.
What about PMAY-Gramin?: PMAY-Gramin pays a construction grant, not a loan subsidy. The subsidy calculator covers it under 'Building or buying a house'.
Is the figure guaranteed?: No. It follows the scheme guidelines. The bank and the nodal agency verify income and the house before the subsidy is credited.

Where the numbers come from

Central scheme guidelines, the National Scholarship Portal and PIB releases.
State department pages and orders, with the current rate tables.

Rules checked by Aapt Dubey, Editor, Scheme Kosh, against each source on 2026-11-02. See the editorial policy.

What it leaves out

Construction grants such as PMAY-Gramin and state housing grants. They are in the subsidy calculator.
Bank-specific rate concessions for women or salaried borrowers.
Stamp duty and registration concessions on the purchase.

Other calculators

Subsidy calculatorFactory, farm, solar, house or EV: central plus state subsidy.Scholarship calculatorWhat a student gets each year, central plus state.Pension scheme calculatorOld age, widow and disability pension, with the state top-up.