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PM Awas Yojana: Home Loan Subsidy Eligibility and How to Claim It

✓ Last verified 14 Sep 2026
The short version The older CLSS interest subsidy under PMAY closed in 2022 and has been replaced by a new Interest Subsidy Scheme (ISS) under PMAY-Urban 2.0 - checking which framework is actually current avoids applying for a scheme that no longer exists.

Why "PMAY subsidy" needs a current-framework check

A lot of older content online still describes the Credit Linked Subsidy Scheme (CLSS) - which offered an interest subsidy on home loans for EWS/LIG and middle-income buyers. CLSS validity ended in March 2022 and it has been formally discontinued.

What replaced it

PMAY-Urban 2.0, approved in the 2024 Union Budget and effective from September 2024 (mission period running through 2029), introduced a new Interest Subsidy Scheme (ISS) as its current home-loan-support mechanism, structured differently from the old CLSS. Applying for "CLSS" today, as some outdated guides still suggest, targets a scheme that no longer accepts new applicants.

What to actually do if you're house-hunting

Check the current PMAY-Urban 2.0 framework and its verticals directly on the scheme's official portal for present eligibility criteria and subsidy structure, rather than relying on older articles describing CLSS's now-defunct terms - eligibility income bands and subsidy mechanics have genuinely changed between the two frameworks.

(Scheme status checked as of September 2026 - PMAY-U 2.0 and its ISS component are the current framework; CLSS is not open to new applicants.)

The takeaway

Before assuming a "PMAY subsidy" works the way an older article describes, confirm you're looking at PMAY-Urban 2.0's current terms - the scheme genuinely changed in 2024, not just cosmetically.

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