The PMAY subsidy that is actually live today is the PMAY-U 2.0 Interest Subsidy Scheme (ISS), not the CLSS scheme this page's calculator models. ISS gives EWS/LIG/MIG households earning up to ₹9 lakh a year a 4% subsidy on the first ₹8 lakh of a loan up to ₹25 lakh (property up to ₹35 lakh), capped at ₹1.80 lakh released over 5 years, for loans sanctioned and disbursed on or after 1 September 2024. The calculator above still runs the older, discontinued CLSS scheme's income slabs and subsidy math — read the correction below before you trust its output.
PMAY-U 2.0: the scheme that replaced CLSS
The Credit Linked Subsidy Scheme (CLSS) that most PMAY explainers online still describe — separate EWS, LIG, MIG-I and MIG-II slabs with different subsidy rates — has been replaced by a single, unified scheme. The Ministry of Housing and Urban Affairs' own PMAY-U 2.0 portal states the current programme is the Interest Subsidy Scheme (ISS), with one unified income structure rather than four separate slabs: "Households belonging to EWS, LIG and MIG category with an annual income of up to ₹3 lakh, ₹6 lakh and ₹9 lakh, respectively" are eligible — meaning anyone earning up to ₹9 lakh a year qualifies under one scheme, rather than needing to identify which of four now-collapsed bands they fall into.
For eligible households, the portal states the loan and subsidy structure directly: "loan value up to ₹25 lakh for property value up to ₹35 lakh", with subsidy at "4.0% on first ₹8 lakh for a tenure up to 12 years". The subsidy itself is capped: "A maximum release of interest subsidy of ₹1.80 lakh having maximum NPV of ₹1.50 lakh (at Discount Rate of 8.5%)", paid out in 5 equal yearly instalments rather than as a single upfront reduction to the loan. Crucially, this scheme only applies to loans sanctioned and disbursed on or after 1 September 2024 — a loan taken before that date, even to an otherwise-eligible household, does not qualify under this scheme.
What the calculator above still uses instead — and why it's wrong
This page's calculator does not run the ISS numbers above. Its EWS and LIG slabs are the old CLSS structure: eligibility capped at ₹6 lakh annual income (not ₹9 lakh), a 6.5% subsidy rate (not 4%) applied to a ₹6 lakh eligible loan (not the current ₹8 lakh subsidy base on a ₹25 lakh loan), computed through a fixed NPV factor rather than the ISS's stated ₹1.50 lakh NPV cap — producing a subsidy figure around ₹2.67 lakh for EWS/LIG, well above the ₹1.80 lakh maximum release the live scheme actually allows. Its MIG-I and MIG-II slabs are marked inactive in the underlying calculation, correctly reflecting that CLSS-MIG ended in March 2021, but the calculator does not offer the unified up-to-₹9-lakh MIG band the current ISS scheme provides instead — so a household earning between ₹6 lakh and ₹9 lakh, who IS eligible under the live scheme, is told by this calculator that they are not eligible at all.
| This calculator (CLSS, discontinued) | PMAY-U 2.0 ISS (live scheme) | |
|---|---|---|
| Income ceiling | ₹6,00,000/year (EWS/LIG combined) | ₹9,00,000/year, unified EWS/LIG/MIG |
| Subsidy rate | 6.5% (EWS/LIG) | 4.0% |
| Subsidy applies to | First ₹6,00,000 of loan | First ₹8,00,000 of loan |
| Maximum loan covered | ₹6,00,000 (EWS/LIG) | ₹25,00,000 |
| Maximum property value | Not modelled | ₹35,00,000 |
| Maximum subsidy released | ≈₹2,67,000 (via NPV factor) | ₹1,80,000 (NPV capped at ₹1,50,000) |
| Payout structure | Modelled as an upfront loan reduction | 5 equal yearly instalments |
| Eligible loans | Not date-restricted in the calculator | Sanctioned and disbursed on/after 1 Sept 2024 only |
Live-scheme column: pmaymis.gov.in, Interest Subsidy Scheme (ISS) page, retrieved 2026-09-21. Calculator column: this page's own eligibility logic, read from the repository.
Practically: if you earn ₹9 lakh a year and take a ₹25 lakh loan on a ₹35 lakh property sanctioned after 1 September 2024, the calculator above will very likely tell you that you are not eligible for any subsidy, because its income ceiling stops at ₹6 lakh. You are, in fact, eligible for the ISS subsidy under the figures MoHUA's own portal publishes — just not the subsidy amount this calculator would show if it modelled the current scheme. Treat every number this calculator produces as illustrative of the CLSS-era mechanics, not as your entitlement under PMAY-U 2.0.
Working out the ISS subsidy by hand
Loan terms that apply whether or not you claim the subsidy
The subsidy changes what you owe, not the underlying loan's regulatory terms. If the home loan under PMAY-U 2.0 is floating-rate, it is a retail loan to an individual for a non-business purpose, so it falls under RBI's Pre-payment Charges on Loans Directions, 2025, which bar lenders from levying pre-payment or foreclosure charges on such loans sanctioned or renewed on or after 1 January 2026. And because floating-rate retail home loans have been required since 1 October 2019 to track an external benchmark such as the repo rate, the EMI on a PMAY-linked home loan moves with RBI policy the same way any other floating home loan does — the subsidy reduces the principal the EMI is computed on; it does not exempt the loan from repo-linked rate resets.
Combining the subsidy with home-loan tax deductions
PMAY-U 2.0's interest subsidy is separate from, and can sit alongside, the home loan interest deductions the Income Tax Department allows — but only under the old tax regime. Section 24(b) caps the self-occupied-property interest deduction at ₹2,00,000, and Section 80C separately caps principal repayment (combined with other instruments) at ₹1,50,000 — both old-regime only. A further Section 80EEA deduction of up to ₹1,50,000 on home loan interest exists for first-time buyers, but only for loans sanctioned between 1 April 2019 and 31 March 2022 — a loan sanctioned in 2026 under PMAY-U 2.0 falls well outside that window and cannot claim it, whatever else it qualifies for. None of these three deductions apply if you file under the new tax regime, so a PMAY-U 2.0 borrower choosing the new regime gets the interest subsidy but no separate income-tax deduction on top of it.
Methodology
PMAY-U 2.0 ISS figures are quoted directly from MoHUA's pmaymis.gov.in portal. The comparison table's calculator column is read from this page's own eligibility logic in the repository, stated as the calculator's current behaviour rather than a market or scheme fact. The worked example applies the scheme's own stated subsidy rate, loan cap and NPV ceiling arithmetically; no subsidy amount is invented or estimated.
Sources
- MoHUA / PMAY-U MIS — Interest Subsidy Scheme (ISS) under PMAY-U 2.0 — accessed 2026-09-21
- Reserve Bank of India — Pre-payment Charges on Loans Directions, 2025 — accessed 2026-09-21
- Reserve Bank of India — External benchmark linking of floating-rate retail loans — accessed 2026-09-21
- Income Tax Department — Salaried Individuals for AY 2026-27 — accessed 2026-09-21
- Income Tax Department — Individual having Income from Business/Profession, AY 2026-27 (Section 80EEA) — accessed 2026-09-21