About this calculator
First, the cleanup this page exists for: the Credit Linked Subsidy Scheme that most "PMAY calculators" still model is dead. CLSS stopped taking MIG applications in March 2021 and EWS/LIG applications on 31 March 2022, and its terms — 6.5% subsidy up to ₹6 lakh, ₹2.67 lakh credited upfront — describe a scheme no new borrower can enter. The live scheme is the Interest Subsidy Scheme of PMAY-Urban 2.0, in force for loans sanctioned on or after 1 September 2024: a 4% per year interest subsidy on the first ₹8 lakh of the loan, calculated over at most 12 years, capped at ₹1,80,000 in total, and paid into the loan account in five yearly instalments rather than one upfront credit.
Eligibility is a set of gates, not a sliding scale. Household income must be within EWS (up to ₹3 lakh), LIG (₹3–6 lakh) or MIG (₹6–9 lakh) — note the ceiling fell from the old CLSS MIG-II limit of ₹18 lakh, which shuts out most metro salaried buyers. The loan may not exceed ₹25 lakh, the house ₹35 lakh, and its carpet area 120 sq m; the family must not own a pucca house or have taken government housing assistance in the last 20 years. Each yearly instalment is conditional: the loan must be active, not an NPA, and still have more than half its original principal outstanding — and a balance transfer to another lender ends the subsidy, a trap worth knowing before you refinance.
How to use it
- Enter total annual household income (you, spouse and unmarried children are one household unit) to find your category.
- Enter the loan, its rate and tenure, plus the house value and carpet area — every scheme ceiling is checked below the result.
- Read the subsidy and the five instalments; at the ₹1,80,000 cap each instalment is ₹36,000.
- Apply through the PMAY-U 2.0 portal or tell your lender at application time that you want the ISS — branch staff do not always volunteer it.
The formula
This is the ISS design in the PMAY-U 2.0 guidelines (MoHUA, pmay-urban.gov.in): a 4-percentage-point interest subvention on the first ₹8 lakh, for a tenure of up to 12 years, to households with income up to ₹9 lakh on loans up to ₹25 lakh for houses up to ₹35 lakh and 120 sq m carpet area. The ₹8 lakh slice is amortised on your loan’s own schedule, so a higher rate or longer tenure reaches the ₹1.80 lakh cap sooner. Individual lenders compute the claim on the same basis; treat this as the planning figure.
Worked example
A LIG household earning ₹5,40,000 a year takes an ₹18,00,000 loan at 8.50% over 20 years for a ₹30,00,000 home. The 4% subvention on the first ₹8 lakh, run over the first 12 years of the schedule, comes to about ₹3.21 lakh before the cap — so the household receives the full ₹1,80,000, as five yearly instalments of ₹36,000 credited to the loan account. A smaller case: a ₹6,00,000 loan at 9% over 10 years earns a subsidy of about ₹1,38,700 (₹27,739 a year), below the cap because the whole loan is under the ₹8 lakh slice.
Sources: PMAY-Urban 2.0 scheme guidelines, Ministry of Housing and Urban Affairs (pmay-urban.gov.in), in force for loans sanctioned on or after 1 September 2024. The earlier CLSS closed to new applications on 31 March 2022 and is not modelled. Last updated: October 2026.
Frequently asked questions
Is the PMAY CLSS subsidy still available in 2026?
No. CLSS closed to MIG applications on 31 March 2021 and to EWS/LIG on 31 March 2022; nothing new is sanctioned under it. What exists now is the PMAY-U 2.0 Interest Subsidy Scheme (from 1 September 2024): 4% on the first ₹8 lakh for up to 12 years, maximum ₹1.80 lakh, in five yearly instalments. Any calculator still showing a 6.5% CLSS subsidy as a live benefit is quoting an expired scheme.
How much subsidy does PMAY 2.0 actually pay?
Up to ₹1,80,000, as five equal yearly instalments of ₹36,000 at the cap, credited to the loan account by DBT. Smaller or shorter loans earn less — the subsidy is the 4% subvention on the outstanding balance of the first ₹8 lakh over up to 12 years, so a ₹6 lakh, 10-year loan earns roughly ₹1.39 lakh. Each instalment requires the loan to be active with over half the principal still outstanding.
Who is eligible for the PMAY-U 2.0 interest subsidy?
Households with annual income up to ₹9 lakh (EWS ≤ ₹3 lakh, LIG ₹3–6 lakh, MIG ₹6–9 lakh), taking a loan of up to ₹25 lakh for a house worth up to ₹35 lakh with carpet area up to 120 sq m, sanctioned on or after 1 September 2024. The family must not own a pucca house anywhere in India or have received government housing assistance in the last 20 years. Above ₹9 lakh household income there is no subsidy under the current scheme.
What happens to the subsidy if I do a balance transfer or prepay?
A balance transfer ends it: the ISS guidelines make the subsidy unavailable after the loan moves lenders, so weigh a transfer’s interest saving against the instalments you would forfeit (the balance transfer calculator here shows the saving side). Heavy prepayment can also cost instalments — each release requires more than 50% of the original principal to still be outstanding, so clearing over half the loan early can stop the remaining credits.
What formula does this pmay subsidy calculator use?
Subsidy = Σ over up to 144 months of (outstanding balance of the first ₹8 lakh of the loan × 4% ÷ 12), capped at ₹1,80,000; paid as subsidy ÷ 5 per year This is the ISS design in the PMAY-U 2.0 guidelines (MoHUA, pmay-urban.gov.in): a 4-percentage-point interest subvention on the first ₹8 lakh, for a tenure of up to 12 years, to households with income up to ₹9 lakh on loans up to ₹25 lakh for houses up to ₹35 lakh and 120 sq m carpet area. The ₹8 lakh slice is amortised on your loan’s own schedule, so a higher rate or longer tenure reaches the ₹1.80 lakh cap sooner. Individual lenders compute the claim on the same basis; treat this as the planning figure. The worked example on this page applies the formula step by step with real numbers, so you can verify the result by hand.