PM Awas Yojana 2026 – How to Get a Subsidy of Rs. 1.80 Lakh on Home Loans

PM Awas Yojana: Owning a home is everyone’s dream. Whether you live in a village or a city, everyone wishes to have their own permanent roof over their heads. To fulfill this dream, the central government has launched the Pradhan Mantri Awas Yojana (PMAY). For rural areas, it is the PM Awas Yojana Gramin, while for urban areas, the PM Awas Yojana Urban is applicable. If you live in a city and are planning to take a home loan to buy a house, then the benefits of this scheme can prove to be very helpful for you.

Through the Interest Subsidy Scheme (ISS) under the Pradhan Mantri Awas Yojana Urban, you can save up to Rs. 1.80 lakh on your home loan. This amount is directly transferred to your loan account, which reduces the loan burden.

Categories of PM Awas Yojana

There are four main categories under the PM Awas Yojana Urban. The first category is ‘Beneficiary-Led Construction’ (BLC), in which, if you own land, the government provides Rs. 2.5 lakh to EWS beneficiaries for building a house. The second category is ‘Affordable Housing in Partnership’ (AHP), in which people living in slums can buy flats in collaboration with private builders. The third category is ‘Affordable Rental Housing’ (ARH), which benefits those who live on rent. The fourth and most important category is the ‘Interest Subsidy Scheme’ (ISS), which is designed for home loan borrowers.

Read Here: Bhojpuri Song – Aamrapali Dubey & Nirahua ‘Full Romantic Song ‘Aashiqui Ne Aashiqui Se’ Hits35+Million Views On Youtube, Watch Now

Read Here: OPPO Find X9s May Feature Pill-Shaped Camera Island & 7000 mAh Battery- Check Launch Date, Price & Features

What is the Interest Subsidy Scheme?

Under the Interest Subsidy Scheme, families with an annual income of Rs. 3 lakh, Rs. 6 lakh, and Rs. 9 lakh can avail of its benefits. If you fall under the EWS, LIG, or MIG category and buy a house or flat, you can get an interest subsidy of up to Rs. 1.80 lakh from the central government. This scheme covers the purchase of a house up to a maximum of Rs. 35 lakh, and a home loan of up to Rs. 25 lakh is covered under the subsidy for a period of 12 years. An interest subsidy of 4% is provided on the first Rs. 8 lakh. This subsidy is credited to your loan account in five installments over a period of 5 years.

Process to Avail Interest Subsidy on Home Loans

To avail of this scheme, you need to apply on the official website of the Pradhan Mantri Awas Yojana (PMAY). You can also seek assistance with the application from the bank from which you are taking the home loan. Your eligibility will be checked during the online application process.

First, go to the PMAYU portal and click on Apply for PMAY-U 2.0. Instructions related to the scheme will appear on the screen; read them carefully and click on Click to Proceed. After this, a list of required documents will be displayed.

In the next step, select your state and enter your annual income. Select the Interest Subsidy Scheme option and answer the questions provided. Proceed after your eligibility is verified.

Now, the Aadhaar authentication process will begin. Enter your Aadhaar number and name and click on Generate OTP. Enter the OTP received on your mobile phone.

After this, the application form will open. You have to fill in information in six categories. First, fill in personal information, then details of family members, followed by information related to the house and the loan. After filling the form, upload the documents and submit.

Read Here: PAN Card Update – Correct Your PAN Card from Home – Learn Complete Online Process

Read Here: Canada-US Tensions Escalate! Mark Carney Clarifies Stance

Required Documents

Applicant’s Aadhaar card

Aadhaar cards of family members

Aadhaar-linked bank account details (account number, bank name, branch, IFSC code)

Annual income certificate

Home loan-related information

How the Money is Received

The interest subsidy will not be credited directly to your bank account. Instead, it will be provided as a reduction in the interest applicable to your home loan. Under this scheme, a maximum relief of Rs. 1.80 lakh is provided, which reduces the burden of loan installments.