KEY HIGHLIGHTS
- Modi govt offers **4% interest subsidy** on home loans under PMAY-U 2.0.
- First-time homebuyers can save big with **lower EMI** on loans up to ₹25 lakh.
- Final impact: Buying a house worth ₹35 lakh becomes more pocket-friendly.
Buying a house in India has become a bit of a budget nightmare for many families. Prices shoot up, salaries stay almost the same, and EMI ka load never ends.
That’s exactly why the Modi government’s new push under PMAY-Urban 2.0 is getting so much attention — because it actually reduces interest and brings the EMI down.
Who is this scheme for?
If you’re from the middle class, economically weaker section (EWS) or low-income group (LIG), this scheme can make your dream home feel a lot more reachable.
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PMAY-U 2.0 Benefits
| Feature | Details |
|---|---|
| Scheme Name | PM Awas Yojana – Urban (PMAY-U) 2.0 |
| Interest Subsidy | 4% |
| Max Property Value | ₹35 lakh |
| Max Loan Amount | ₹25 lakh |
| Max Subsidy Loan Portion | Up to ₹8 lakh |
| Loan Tenure for Subsidy | Up to 12 years |
| Eligible Income Groups | Up to ₹9 lakh annual income |
| First-Time Buyer Required? | Yes |
| Existing Home Allowed? | No (must NOT own a house anywhere in India) |
Why this matters for homebuyers
Most people take a long home loan and get stuck with high EMIs for decades. After a point, many simply give up on the idea of owning a house.
But here’s the twist — with a 4% subsidy, the interest burden on a big chunk of your loan drops sharply. That means more saving every month and a lighter EMI from day one.
How much subsidy can you actually get?
If your loan is up to ₹8 lakh (within the ₹25 lakh limit), and your tenure is up to 12 years, you qualify for the full 4% interest subsidy.
The benefit reduces the effective cost of the loan significantly — making a ₹35 lakh house feel within reach.
Who gets the biggest benefit?
People earning up to ₹9 lakh per year — basically India’s salaried middle class, small business owners, and families living on a single income.
The only strict condition:
You must not already own a house anywhere in India.
This keeps the scheme fair and ensures only first-time buyers get support.
Frequently Asked Questions
1. Can I apply if my income is slightly above ₹9 lakh?
No. The upper income limit for this subsidy is ₹9 lakh annual income.
2. Will I get subsidy if I already have a house in my hometown?
No. If you own any residential property anywhere in India, you are not eligible.
3. Can I buy a house above ₹35 lakh and still claim subsidy?
No. The scheme is restricted to homes priced up to ₹35 lakh only.
