PMAY-U 2026 Subsidy Calculator — How Much Can You Save on Your Home Loan?

How the CLSS Subsidy Calculation Works — The Exact Math

The CLSS subsidy is calculated on Net Present Value (NPV) basis — it is the present value of the interest savings over 20 years, credited upfront to your loan account. The formula: Subsidy = NPV of (Subsidy Rate × Eligible Loan Amount × Tenure). EWS/LIG example: Loan amount ₹6 lakh, 6.5% subsidy, 20 years → NPV benefit = ₹2,67,280. This means on day one of your home loan, ₹2,67,280 is deducted from your outstanding principal. If your loan was ₹25 lakh, your effective outstanding becomes ₹22,32,720 — immediately reducing your EMI. MIG-I example: Loan amount ₹9 lakh, 4% subsidy → NPV benefit = ₹2,35,068. MIG-II example: Loan amount ₹12 lakh, 3% subsidy → NPV benefit = ₹2,30,156. The subsidy is only on the 'eligible' loan amount — any loan above the cap (₹6L/₹9L/₹12L) is at normal market interest.

Income Categories and Eligibility Rules

EWS (Economically Weaker Section): Annual household income up to ₹3 lakh. Carpet area of house up to 30 sq.m. Only female family member must be co-applicant or sole owner. LIG (Lower Income Group): Annual income ₹3–6 lakh. Carpet area up to 60 sq.m. Female co-applicant mandatory. MIG-I (Middle Income Group I): Annual income ₹6–12 lakh. Carpet area up to 160 sq.m. Female co-applicant not mandatory. MIG-II (Middle Income Group II): Annual income ₹12–18 lakh. Carpet area up to 200 sq.m. The 'no pucca house' condition: no member of the beneficiary household must own a pucca (permanent) house anywhere in India. This includes ancestral property — even if you are not living in it, its ownership disqualifies you.

How to Apply — Bank-Wise Process

Step 1: Confirm eligibility by checking pmaymis.gov.in → 'Am I Eligible?' section. Step 2: Approach any PMAY-empanelled bank or housing finance company (SBI, HDFC, LIC Housing Finance, PNB Housing, Canara Bank, etc.) and inform them you want CLSS benefit with your home loan. Step 3: Fill the CLSS application form (available at the bank). Submit income proof, Aadhaar, property documents, and a self-declaration confirming no pucca house ownership. Step 4: The bank submits your application to the Central Nodal Agency (NHB or HUDCO). Step 5: After verification, the subsidy is credited to your loan account within 3–6 months of loan disbursement. Important: You must declare CLSS at the time of loan sanction — it cannot be claimed after your loan is disbursed and running.

PMAY 2.0 — What Changed in 2024–26

The original PMAY-U scheme closed in March 2022. PMAY 2.0 was launched in August 2024 with ₹2.30 lakh crore outlay for 1 crore additional houses. Key changes in 2.0: Coverage expanded to include rental housing (PM-ARHC) for workers in cities. EWS subsidy increased and eligibility simplified. New 'Urban Poor' category added for construction workers, gig economy workers, and hawkers. Technology-based tracking through Aadhaar-linked beneficiary database. Application process is now fully paperless through bank portals. Check pmaymis.gov.in for the 2.0 notification as scheme parameters may be updated.

Frequently Asked Questions