“I thought I’d get ₹2.7 lakh subsidy—only to be told I didn’t qualify?”
Many homeowners don’t realize PMAY Urban 2.0 has shifted to the Interest Subsidy Scheme (ISS) with a maximum benefit of ₹1.8 lakh, not the older CLSS-based amount. Plus, PMAY Gramin still provides only ₹1.2–1.3 lakh, but direct no loan needed.
As an SBI Securities Home Loan officer, I’ve seen families miss out by applying under the wrong scheme or using outdated information.
Let’s breakdown:
PMAY-Urban 2.0 (ISS) vs PMAY-Gramin: Key Highlights
| Feature | PMAY‑Urban 2.0 (ISS) | PMAY‑Gramin |
|---|---|---|
| Subsidy Type | 4% interest subsidy on first ₹8 lakh loan, max ₹1.8 lakh Source 1, Source 2 | Direct cash assistance: ₹1.2 lakh (plain) or ₹1.3 lakh (hilly/IAP) Source 3 |
| Income Limit | EWS/LIG/MIG households with income up to ₹9 lakh/year | Kutcha house dwellers listed in SECC 2011; exclusions apply |
| Loan Rules | Loan required; max loan ₹25 lakh, property value ≤ ₹35 lakh, carpet ≤ 120 sqm | Loan not required; assistance directly credited in stages |
| Property Location | Must be in statutory urban towns/cities | Must be in rural Gram Panchayat areas verified by Gram Sabha |
| Family Conditions | No pucca house owned by any family member; preference for women, SC/ST, disabled, elderly | Kutcha or houseless families only; exclusions: govt job, vehicle, income tax, landline, fridge |
| Maximum Assistance | Up to ₹1.8 lakh subsidy over 5 years | ₹1.2–1.3 lakh total, disbursed in 3 installments |
PMAY-Urban 2.0 ISS – Updated Eligibility
- Income: Up to ₹9 lakh/year (EWS/LIG/MIG)
- Loan: ≤ ₹25 lakh; property value ≤ ₹35 lakh; carpet area ≤ 120 sqm
- Subsidy: 4% on first ₹8 lakh for up to 12 years
- Conditions: No pucca house in family, one-time subsidy, women ownership preferred
🔗 Also explore: SBI Home Loan under PMAY‑U 2.0
PMAY-Gramin – Updated Eligibility
- Must appear in SECC 2011 list
- Approved by Gram Sabha
- Kutcha or houseless families only
- Excluded if owning car, fridge, landline, govt job, tax payer, etc.
- ₹1.2–1.3 lakh disbursed directly (no loan required)
🔗 Also see: PMAY Gramin AwaasPlus App & Process
Field Insight: What I’ve Learned
I often meet borrowers confused about their property location. Even if they live in cities, if the plot is in a village, Urban ISS won’t apply—and vice versa.
✔️ Solution:
- Check property address, not your place of residence.
- Use this chart to guide clear decisions.
Document Checklist
| Document | PMAY‑U ISS | PMAY‑Gramin |
|---|---|---|
| Aadhaar & Address Proof | ✔️ | ✔️ |
| Income Proof | ✔️ (Self-affidavit) | ❌ |
| Loan Sanction Letter | ✔️ | ❌ |
| Property/House Proof | ✔️ | ✔️ |
| SECC Identity & Gram Sabha Letter | ❌ | ✔️ |
Application Links
- PMAY-Urban: pmaymis.gov.in
- PMAY-Gramin: pmayg.nic.in
Which Should You Apply For?
- Loan + Urban location + carpet area ≤ 120 sqm → PMAY‑U ISS
- No loan + rural property + SECC-listed → PMAY‑Gramin
- Wrong choice = lost subsidy, delays, or rejections.
Check Your Subsidy
Use this tool to estimate your potential benefit:
👉 PMAY‑Urban ISS Subsidy Calculator
Final Thoushts
Don’t rely on outdated PMAY info.
📌 PMAY‑U now offers ISS with max ₹1.8 lakh, while PMAY‑G continues with direct ₹1.2–1.3 lakh aid.
Check your income, loan, carpet area, and property location carefully.
A small detail could cost you lakhs, choose wisely.
FAQs
1. Can a migrant worker living in a rented city house apply under PMAY Urban if their family home is in a village?
No. PMAY Urban eligibility is based on the location of the property you’re building or buying—not your current residence. If the property is in a rural area, even if you currently live in an urban rental, you must apply under PMAY-Gramin, not Urban
2. Is female ownership mandatory for PMAY-U 2.0 subsidy?
No, it’s not mandatory, but having the house in the name of the adult female member, or joint ownership including her, gives you priority—increased chances of approval and alignment with scheme guidelines
3. What happens if my town/village is undergoing rural-to-urban re-classification?
In cases where an area is on the verge of rural/urban classification, you can choose either scheme, but you can only benefit once. The system flags duplicates, so pick the scheme that gives you the maximum subsidy or aid.
4. Can I sell or transfer the house after getting PMAY subsidy?
For PMAY-U, you must use the house for your own residence for at least five years from subsidy approval; transferring or selling before that can result in recovery of subsidy. For PMAY-G, no such restriction is clearly defined, but the focus remains on the family’s residence
5. Is the PMAY-U deadline extension applicable to my loan?
Yes. The completion deadline for PMAY-U houses has been extended to 31 December 2025 for all houses sanctioned up to 31 March 2022. So long as your loan and application meet eligibility before that cutoff, your subsidies remain secured.
