Key features of Interest Subsidy Scheme (ISS)

• An interest subsidy of 4% is available under this scheme. The Net Present Value (NPV) of the interest subsidy is being calculated at a reduced rate of 8.5%.
• The total subsidy amount can be up to ₹1.8 lakh, available on the first ₹8 lakh of the PMAY Home Loan scheme, spread over 12 years.
• The subsidy will be released in 5 yearly instalments provided loan is active at the time of release of subsidy and more than 50% principal is outstanding.

Property Related Norms

• Ownership of property : Ownership of the house to be in the name of female head of the household or in joint ownership with the male member and his wife and only in cases when there is no adult female member in the family, the house can be in the name of male member of the household. In cases where the applicant is a widower, unmarried, separated person, or transgender, the house will be made in the individual’s name. In case of death of beneficiary(s), the legal heir of the beneficiary will get the benefit under the scheme.
• Carpet Area of the property to be considered:  Up to 120 Sq. Meter.
• Pucca House: A new pucca house under PMAY-U 2.0 will have at least 2 rooms, kitchen and a toilet/bathroom.
• Gram Panchayat approved properties will not be considered.

Detailed Eligibility Criteria under the Scheme:click here

Exclusions (ineligibility) criterion under Interest Subsidy Scheme

• The subsidy under the scheme will be provided only once for a property. If it is sold to someone else, the purchaser can’t take benefit of Interest Subsidy Scheme (ISS) on this property.
• If two or more family members take combined or separate loan on same property, they will be treated as same family for calculation of family income and benefit.
• In case a borrower has taken a housing loan from one financial institution and later on switches to another lender for balance transfer, such beneficiary will not be eligible to claim the benefit of interest subsidy again. If a person has not claimed interest subsidy from first lender, he/she shall not be eligible after balance transfer.
• A beneficiary family belonging to EWS/LIG/MIG segments, living in urban areas, should not own a pucca house [(an all-weather dwelling unit)] either in his/her name or in the name of any member of his/her family in any part of India. 
• The beneficiaries who have availed any previous benefit of schemes under Central/State/UT/Local bodies in the last 20 years, shall not be eligible under the scheme.
• Only loan up to ₹25 lakh with the house value up to ₹35 lakh will be eligible for subsidy under this scheme. If the family income or property value as assessed by Bank for sanction of loan is higher than eligibility limit, loan will not be eligible for subsidy.
• In case of any false declaration on income level by a beneficiary who has already availed the scheme benefit, he/she would be liable for legal proceedings under applicable laws.

Sanction of Home Loan will be as per Bank’s guidelines.

The interest subsidy on home loans under government schemes is subject to eligibility norms prescribed by the Ministry of Housing and Urban Affairs. Kindly refer to the scheme guidelines click here

Frequently Asked Questions (FAQ’s)- PMAY (URBAN) 2.0 ISS: click here

• Apply for Home Loan: You can visit nearest branch or Apply online : click here
• Apply for PMAY U 2.0 Subsidy (Unified web-Portal): click here