PM Awas Yojana Urban provides interest subsidy on housing loans for EWS, LIG, MIG-I, and MIG-II categories. Depending on your income, you can get up to ₹2.67 lakh subsidy. This guide explains the CLSS application process, eligibility by income bracket, and required documents.
Introduction
Pradhan Mantri Awas Yojana – Urban (PMAY-U) was launched in June 2015 to provide affordable housing to urban poor households. The scheme has four verticals: In-Situ Slum Redevelopment, Credit Linked Subsidy Scheme (CLSS), Affordable Housing in Partnership, and Subsidy for Beneficiary-Led Construction. As of 2026, over 1.2 crore houses have been sanctioned under PMAY-U with an investment of over ₹8 lakh crore.
CLSS Interest Subsidy Details
| Income Category | Annual Income Limit | Interest Subsidy | Max Loan Eligible |
|---|
| EWS | Up to ₹3,00,000 | 6.5% subsidy on 9% rate (effective ~3.33%) | ₹6,00,000 |
| LIG | ₹3,00,001 – ₹6,00,000 | 6.5% subsidy (effective ~3.33%) | ₹6,00,000 |
| MIG-I | ₹6,00,001 – ₹12,00,000 | 4% subsidy (effective ~5.33%) | ₹9,00,000 |
| MIG-II | ₹12,00,001 – ₹18,00,000 | 3% subsidy (effective ~6.33%) | ₹12,00,000 |
How is the PMAY Urban subsidy calculated?","answer":"The subsidy is calculated on the interest rate reduction, not the loan principal. For example, EWS/LIG beneficiaries get a 6.5% interest subsidy on a 9% loan, bringing their effective rate to approximately 3.33%. The net present value of this interest subsidy is up to ₹2.67 lakh, which is credited upfront to the loan account.
Can I apply for PMAY Urban if I already have a house?","answer":"No, PMAY Urban is only for families who do not own a pucca house anywhere in India. The beneficiary family should not have availed housing assistance from any central or state government housing scheme earlier. Self-declaration of houselessness is accepted.
What is the minimum carpet area for PMAY houses?","answer":"For EWS category, the minimum carpet area is 30 sq meters. For LIG category, it is 60 sq meters. For MIG-I and MIG-II, it is 160 sq meters. The house must have at least one room, kitchen-cum-living area, and a hygienic toilet.
How do I apply for PMAY Urban 2026?","answer":"Apply online through the PMAY Urban portal (pmay-urban.gov.in) or visit your nearest bank or Urban Local Body office. You need Aadhaar, income certificate, and proof of residence. The application is verified by the ULB and the subsidy is released through your lending bank.
