DAY-NULM Loan Subsidy: 2026 Status and What to Use Instead

DAY-NULM's Self-Employment Programme, which gave the urban poor bank loans with the interest above 7% paid by the government, is closed. The Ministry of Housing and Urban Affairs (MoHUA) confirmed in a Lok Sabha reply on 29 January 2026 that DAY-NULM's implementation period ended on 30 September 2024. As of October 2026 no full successor with a loan subsidy has been announced. If you need a loan today, use PM SVANidhi (street vendors), Mudra, PMEGP, PM Vishwakarma or the national SC, OBC, minority and sanitation-worker finance corporations, all covered below.

Many websites, bank pages and "apply for NULM loan" ads still describe the scheme as open. They are out of date, and any site charging a fee to process a NULM loan is a scam.

What DAY-NULM was

Deendayal Antyodaya Yojana - National Urban Livelihoods Mission (DAY-NULM) was launched in 2013-14 as NULM, replacing the Swarna Jayanti Shahari Rozgar Yojana. It aimed to reduce poverty in cities through self-help groups, skill training, shelters for the homeless, support for street vendors and, through its Self-Employment Programme (SEP), cheap bank credit. By 30 September 2024 it had formed about 10.03 lakh self-help groups and trained about 15.43 lakh people, according to MoHUA.

What the Self-Employment Programme offered

So a borrower whose bank charged 12% effectively paid about 7%, because the difference was credited back to the loan account.

What happened after September 2024

• DAY-NULM ended on 30 September 2024. MoHUA's January 2026 reply describes it in the past tense and lists PM SVANidhi and PMAY-U 2.0 as its current schemes for the urban poor.
• DJAY-S pilot. From 1 October 2024 MoHUA ran a pilot, Deendayal Jan Aajeevika Yojana-Shehari (DJAY-S), in 25 cities. It studies six vulnerable groups (gig workers, transport workers, construction workers, waste workers, care workers and domestic workers) to design future schemes. It is not a loan scheme and offers no interest subsidy.
• No successor yet. Reports in October 2026 said the pilot had run until December 2025, a planned nationwide expansion was dropped, and the Ministry said a new livelihood programme was "under discussion". Sources differ on the exact end of the pilot, so treat its status as uncertain.
• States waiting for money. Several states have asked the Centre for funds to keep their urban livelihood missions and SHG networks running, and at least one state has sought central money for interest subsidy owed on NULM loans that run beyond the scheme's closure.

If you already have a NULM loan

1. Keep paying EMIs on time. The loan is a normal bank loan; the subsidy was an add-on. Missing EMIs will hurt your CIBIL record whether or not the subsidy arrives.
2. Check your loan statement for interest subsidy credits. Note the last quarter in which one was credited.
3. Write to your bank branch asking whether subsidy claims for your account were filed and whether any are pending.
4. Write to the city mission or municipal NULM cell (usually in the municipal corporation's community development department) with your loan account number.
5. If there is no reply in 30 days, use CPGRAMS (pgportal.gov.in) for the government side. For bank service issues, complain to the bank's grievance officer and then the RBI Integrated Ombudsman at cms.rbi.org.in.

Whether pending subsidy will be paid depends on funds being released; there is no published rule that cancels subsidy already earned, but there is also no guarantee of payment.

What to use instead: active loan schemes in October 2026

For more options, see our list of government business loan schemes.

Worked example: what the lost subsidy is worth (illustrative)

Take a ₹2 lakh loan for a tailoring unit, repaid over 5 years (60 EMIs). SBI's NULM page listed its rate as 12.15% in 2025; we use that as the bank rate.

EMI = P × r × (1 + r)^n / [(1 + r)^n − 1], with P = ₹2,00,000, n = 60. Under NULM you usually paid the full EMI and the subsidy came back as credits, so the 7% line shows the net cost.

Today, an OBC applicant could borrow the same ₹2 lakh from NBCFDC at 8% (EMI about ₹4,055) and an SC applicant from NSFDC at 8%. A street vendor needing ₹50,000 or less is better off with PM SVANidhi, which still pays a 7% interest subsidy. Others will usually pay the bank's Mudra rate. Compare EMIs in the EMI calculator.

Scams to avoid

• Websites and social media pages with names like "NULM loan apply online 2026" asking for a registration or processing fee.
• Agents promising "NULM subsidy" in exchange for a commission.
• Calls asking for OTPs or bank details to "release your NULM subsidy".

Report such fraud at cybercrime.gov.in or on 1930, and read how to report fake loan fraud.

Key takeaways

• DAY-NULM, including its Self-Employment Programme and 7% interest subsidy, ended on 30 September 2024 (MoHUA, Lok Sabha, January 2026).
• The DJAY-S pilot that followed is a 25-city study of vulnerable workers, not a loan scheme; no successor with a loan subsidy had been announced by October 2026.
• Existing NULM borrowers should keep paying EMIs and follow up in writing on pending subsidy credits.
• Street vendors should use PM SVANidhi; others should look at Mudra, PMEGP, PM Vishwakarma and the SC, OBC, minority and safai karamchari finance corporations.
• Any website or agent taking fees for a "NULM loan" in 2026 is not genuine.