HDFC PMAY

Buying a home in an urban city is no small feat. Between rising property prices and the cost of living, owning a home often feels like a distant dream—especially for low- and middle-income families. But with the government’s Pradhan Mantri Awas Yojana – Urban 2.0 (PMAY-U 2.0) and HDFC Bank’s participation in the Interest Subsidy Scheme (ISS), your dream of owning a “pucca” house in the city is now more achievable than ever.

What is HDFC PMAY?

HDFC PMAY is a collaborative initiative where HDFC Bank partners with the National Housing Bank (NHB) to implement the Interest Subsidy Scheme (ISS) under the PMAY-U 2.0 mission. This scheme allows eligible borrowers from Economically Weaker Sections (EWS), Low-Income Groups (LIG), and Middle-Income Groups (MIG) to get a home loan subsidy of up to ₹1.80 lakhs, making housing more affordable.

The Interest Subsidy Scheme is available on home loans sanctioned on or after September 1, 202,4, and is valid for five years from the launch date.

What is PMAY-U 2.0?

Launched as an extension of the original PMAY (2015-2022), the PMAY Urban 2.0 mission aims to fulfill the Government of India’s “Housing for All” vision by helping 1 crore urban poor and middle-class families either construct, buy, or rent a home in urban India.

This new phase was announced in the Union Budget 2024 and officially launched on September 1, 2024. Under this mission, eligible families can receive central assistance of up to ₹2.50 lakh crore for affordable housing projects across India’s urban landscape.

How Does the Interest Subsidy Scheme (ISS) Work?

The Interest Subsidy Scheme (ISS) under PMAY-U 2.0 reduces the financial burden of repaying a home loan by offering an interest subsidy of up to ₹1.80 lakh. Here’s how it works:

• The subsidy is applied upfront, reducing the principal loan amount.
• As a result, your EMI amount becomes significantly lower, making repayments easier.
• The subsidy is calculated based on Net Present Value (NPV) at a discount rate of 8.5%.
• The maximum subsidy term is capped at 12 years, even if your loan tenure is longer.

Eligibility Criteria for HDFC PMAY Subsidy

To benefit from HDFC’s PMAY home loan subsidy, you must fulfill the following conditions:

Additional conditions:

• You should not own a pucca house anywhere in India.
• The home must be in the name of a female member of the family or jointly owned with the female head (exceptions apply).
• The home should be located in a statutory town as per Census 2011 or any later notified urban planning area.

What Types of Home Loans Are Eligible?

Under HDFC PMAY subsidy, the following types of properties are:

• Purchase of new/resale houses
• Construction of new home
• Repurchase of a house
• Self-construction (with valid documentation)

Note- The subsidy will be granted only once per family and only on the first ₹8 lakh that is granted as a loan, irrespective of the entire home loan availed. 

How to Apply for HDFC PMAY Subsidy?

Applying for the subsidy through HDFC is a straightforward process:

1. Apply for an HDFC Home Loan
   Visit the HDFC Home Loan page and complete your application online or visit the nearest branch.
2. Apply for PMAY Subsidy
   After your loan is sanctioned, HDFC will initiate the PMAY-ISS process and send your details to the National Housing Bank (NHB) for verification.
3. Get Subsidy Credited
   Once NHB approves, the subsidy amount is credited directly to your home loan account, and your EMI is recalculated on the reduced principal.

You can also track your PMAY subsidy status at the official PMAY-CLSS tracker.

Key Features of HDFC PMAY Interest Subsidy Scheme

• Interest Subsidy of ₹1.80 lakh 
• EMI reduced through upfront principal adjustment 
• 5-year subsidy via DBT transfer 
• No extra documentation- self-declaration of not owning a house shall suffice 
• Support to first-time urban homeowners 
• On home loans up to ₹25 lakh.
• Available women owners, including widows, separated from men, and transgenders 

Who Is Not Eligible?

There are some restrictions you need to be aware of:

• Home loans sanctioned before September 1, 2024
• Families already own a pucca house
• Properties above ₹35 lakh or income beyond ₹9 lakh
• Previous beneficiaries of housing schemes in the last 20 years
• Balance transfers after claiming a subsidy from another lender
• Multiple claims for the same property by family members