Owning a home shouldn’t feel out of reach—especially when your monthly rent already proves you can manage an EMI. With SBI’s Pradhan Mantri Awas Yojana‑Urban 2.0 Interest Subsidy Scheme (PMAY‑U 2.0 ISS)—the revamped version of the original PMAY‑U CLSS programme—the government steps in to lighten your load.
Under this “Housing for All” mission, eligible families get Central Assistance delivered through trusted Primary Lending Institutions (like SBI) to buy or even repurchase a house in any urban area.
Here’s what that means for you: a sizeable interest subsidy that slashes your effective EMI, straightforward digital paperwork, and quick approvals guided by a team that speaks your language, not legal jargon. So instead of watching property prices climb while you write another rent cheque, you’ll be hanging a nameplate on the door of a place that’s finally and fully yours.
SBI Pradhan Mantri Awas Yojana – Urban 2.0 Highlights
| Category | Highlights |
|---|---|
| Interest Rates | 8.25% p.a. onwards |
| Maximum Loan Amount | ₹25 Lakhs |
| Processing Fees | Up to ₹8 Lakhs: NA Above ₹8 Lakhs: As per regular home loan scheme |
SBI Pradhan Mantri Awas Yojana – Urban 2.0 Interest Rates 2025
SBI doesn’t list a single “PMAY 2.0 rate” on its website because the final figure moves with the RBI’s repo‑linked benchmark and your own credit profile. Instead of quoting a not‑so‑helpful range, let’s see how the interest subsidy actually lowers your cost:
Illustrative example
• Loan amount: ₹8 lakh
• Market rate: 9 % p.a.
• Tenure: 12 years
• PMAY‑U 2.0 subsidy: 4 % on the first ₹8 lakh
- Without the subsidy
EMI ≈ ₹9,104 per month - With the 4 % subsidy
The effective rate on that ₹8 lakh falls to about 5 % p.a.
EMI ≈ ₹7,399 per month
Monthly saving: ~₹1,700
Total saving over 12 years: ~₹2.45 lakh
The Central Government credits this subsidy upfront to your loan account, instantly trimming the principal and letting you enjoy the lighter EMI from day one. Any amount you borrow beyond the subsidised cap continues at SBI’s standard repo‑linked rate.
SBI Pradhan Mantri Awas Yojana – Urban 2.0 Eligibility Criteria
| Criteria | Details |
|---|---|
| Resident Type | Resident Indian |
| Women’s Property Ownership | Women must be sole/co-owner of the property. |
| No Pucca House in the Family | Family must have no pucca house anywhere in the country. |
| Gross Annual Household Income | Up to ₹9 Lakh |
| Maximum Carpet Area | Up to 120 Sqm |
| Government Housing Scheme Eligibility | Beneficiary must not have been allotted a house under any housing scheme in the last 20 years. |
Suggested Read: How to Check PMAY Benificiary List?
Who Can Register Under PMAY?
Finding out whether you can sign up for the Pradhan Mantri Awas Yojana is easy once you know which bucket you fall into. The scheme welcomes two broad groups—those upgrading from unsafe homes and those whose income meets the official limits. Here’s the snapshot:
| Eligibility Category | Who Can Apply | What Qualifies You |
|---|---|---|
| Slum Dwellers | Families living in makeshift or sub‑standard shelters | Lack of steady water supply, sanitation, and durable infrastructure; seeking replacement with a permanent home |
| Income‑Based Households | – Economically Weaker Sections (EWS) – Lower Income Groups (LIG) – Middle‑Income Groups (MIG‑I & MIG‑II) | Household income falls within the government’s specified limits for these brackets, making you eligible for subsidised housing assistance |
Suggested Read: PMAY Eligibility Criteria
SBI Pradhan Mantri Awas Yojana – Urban 2.0 Processing Fees
| Loan Amount | Processing Fees |
|---|---|
| Up to ₹8 Lakh | NA |
| Above ₹8 Lakh | As per Regular Home Loan Scheme (0.35% of the Loan Amount) |
SBI Pradhan Mantri Awas Yojana – Urban 2.0 Other Fees and Charges
| Type of Fees | Description/ Charges |
|---|---|
| Stamp Duty | As per Loan Agreement |
| Insurance | Property Insurance Premium |
| CERSAI Fees | ₹50 + GST Onwards |
Suggested Read: The Growth of Affordable Housing in India
SBI Pradhan Mantri Awas Yojana – Urban 2.0 Documents Required
1. Loan Application Documents
- Completed Loan Application Form
- 3 Passport-Sized Photographs
- PMAY-U 2.0 Reference Number (generated via the PMAY-U 2.0 Portal)
2. Proof of Identity
- Aadhaar Card
- PAN Card
3. Proof of Residence / Address
- Recent Utility Bill (Telephone, Electricity, Water, or Piped Gas)
- Passport
- Driving License
- Aadhaar Card
4. Employment Verification
- Employer Identity Card
- Salary Slip or Salary Certificate (last 3 months)
- Form 16 (last 2 years)
- Income Tax Returns (last 2 financial years, acknowledged by IT Department)
5. Property Documents
- Registered Sale Deed or Stamped Agreement to Sale
- Occupancy Certificate
- Share Certificate (only for Maharashtra), Maintenance Bill, Electricity Bill, Property Tax Receipt
- Approved Plan Copy (Xerox Blueprint) and Registered Development Agreement of the builder
- Conveyance Deed
6. Bank Account Statements
- Last 6 months’ Bank Account Statements for all accounts held by the applicant(s)
7. Income Proof for Salaried Applicants / Co-applicants / Guarantors
- Salary Slip or Salary Certificate (last 3 months)
- Form 16 (last 2 years)
- Income Tax Returns (last 2 financial years, acknowledged by IT Department)
8. Income Proof for Non-Salaried Applicants / Co-applicants / Guarantors
- Business Address Proof
- Income Tax Returns (last 3 years)
- Balance Sheet and Profit & Loss Account (last 3 years)
- Business License Details (or equivalent)
- TDS Certificate (Form 16A, if applicable)
9. PMAY-U 2.0 Specific Documents
- Self-Undertaking by Beneficiary under the Interest Subsidy Scheme (ISS)
- Aadhaar Details of the applicant and family members
- Active Bank Account Details (linked to Aadhaar)
- Income Certificate
- Caste/Community Proof Certificate (for SC/ST/OBC applicants)
- Land Documents (if applying for financial assistance to construct on own land)
Suggested Read: Investment Opportunities in Andheri’s Slum
How to Apply for SBI Pradhan Mantri Awas Yojana – Urban 2.0?
- Visit the official website of the PMAY‑HFA (Urban) website.
- Run an Eligibility Check
Use the on‑screen prompts to fill in the basic “pre‑requisite” questions.
- Enter Your Aadhaar Number
Type in your 12‑digit Aadhaar and hit Submit to move ahead.
- Verify Aadhaar & Fill Personal Details
The site automatically validates your Aadhaar. Once verified, a longer form appears—add your name, income, address, phone number, and other required information.
- Complete Captcha & Submit
Key in the captcha code shown at the bottom of the page and click Submit. Your PMAY‑U 2.0 registration is now lodged with the system.
Suggested Read: West Bengal Housing Scheme for All
Compare Top Banks Home Loan Interest Rates
| Bank | Up to Rs. 30 Lakh | Above Rs. 30 Lakh to Rs. 75 Lakh | Above Rs. 75 Lakh |
|---|---|---|---|
| SBI Bank | 8.50% p.a. onwards | 8.5% p.a. onwards | 8.50% p.a. onwards |
| HDFC Bank | 8.75% p.a. onwards | 8.75% p.a. onwards | 8.75% p.a. onwards |
| LIC Bank | 8.50% – 10.35% p.a. | 8.50% – 10.55% p.a. | 8.50% – 10.75% p.a. |
| ICICI Bank | 8.75% p.a. onwards | 8.75% p.a. onwards | 8.75% p.a. onwards |
| Kotak Mahindra Bank | 8.75% p.a. onwards | 8.75% p.a. onwards | 8.75% p.a. onwards |
| Punjab National Bank | 8.50% – 11.05% p.a. | 8.50% – 11.05% p.a. | 8.50% – 11.05% p.a. |
| Bank Of Baroda | 8.40% – 10.65% p.a. | 8.40% – 10.65% p.a. | 8.40% – 10.90% p.a. |
| Bajaj Housing Finance | 8.50% p.a. onwards | 8.50% p.a. onwards | 8.50% p.a. onwards |
| Axis Bank | 8.75%-10.30% p.a. | 8.75%-10.30% p.a. | 8.75%-10.30% p.a. |
| Bank of India | 8.40% p.a onwards | 8.40% p.a onwards | 8.40% p.a onwards |
| TATA Capital | 8.75% p.a. onwards | 8.75% p.a. onwards | 8.75% p.a. onwards |
Conclusion
Taking a home loan is a big step, but we make it easy. Choosing Credit Dharma for your home loan simplifies this process. We offer expert advice and personalized assistance to make everything hassle-free. You’ll receive timely updates on your loan application and disbursement progress.
From the initial application to the final disbursement, we provide comprehensive support. Enjoy clear and honest communication at every stage, with no hidden surprises.
Frequently Asked Questions
A household consisting of husband, wife and unmarried children that does not already own a pucca (all‑weather) house anywhere in India. Adult earning members can be treated as separate households.
– EWS: ≤ ₹3 lakh p.a.
– LIG: ₹3‑6 lakh p.a.
– MIG I: ₹6‑12 lakh p.a.
– MIG II: ₹12‑18 lakh p.a.
Yes. At least one female member must be an owner or co‑owner of the house bought under PMAY‑U 2.0.
No. Prior benefit under PMAY or any other Central housing scheme disqualifies you.
– EWS/LIG: 6.5 % on loan up to ₹6 lakh
– MIG I: 4 % on ₹9 lakh
– MIG II: 3 % on ₹12 lakh
The effective saving over 20 years can reach about ₹2.67 lakh (EWS/LIG) or ₹1.8 lakh (MIG).
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