Pradhan Mantri Awas Yojana (PMAY, launched in 2015, was started to ensure affordable housing for all by the year 2022. This scheme employs eco-friendly measures and sustainable construction methods and aims to provide sanitation and decent living conditions for everyone. PMAY also focuses on slum redevelopment with financial assistance from the central government.

PMAY grants interest subsidies on housing loans through the Credit Linked Subsidy Scheme (CLSS) to economically challenged sections of the society. To avail the subsidies, applicants need to understand the following details regarding the scheme.

Eligibility Criteria for PMAY

The beneficiaries must fall under the following categories to avail PMAY benefits.
  • EWS or Economically Weaker Section -300,000 in a FY.
  • LIG or Low-income Group- 300,001-600,000 in a FY.
  • MIG or Middle Income Group
    • MIG-I6,00,001-12,00,000 in a FY.
    • MIG-II 12,00,001-18,00,000 in FY.
While looking at how to avail PMAY subsidy, the beneficiaries must also satisfy the following conditions:
  • Must not own a pucca house under the name of any family member anywhere in the country
  • Must not have received assistance under any other central scheme for housing.
  • Any household that includes a married couple and unmarried children can apply for PMAY benefits.
  • Any earning adult member of the family who is unmarried is considered as a separate household.
  • Female ownership or co-ownership is mandatory for EWS and LIG categories.

PMAY Subsidy Details

Here is a broad look at the subsidy details

Interest rate Subsidy 6.5% p.a. 6.5% p.a. 4% p.a. 3% p.a.
Maximum Loan Tenure 20 years 20 years 20 years 20 years
Maximum Loan Amount that Qualifies for Subsidy Rs.6 lakhs Rs.6 lakhs Rs.9 lakhs Rs.12 lakhs
Maximum Interest Subsidy Rs.2.67 lakhs Rs.2.67 lakhs Rs.2.35 lakhs Rs.2.30 lakhs
NPV Discount of Interest Subsidy 9.00% 9.00% 9.00% 9.00%
Max. Unit Carpet Area 30 sq. m 60 sq. m 160 sq. m 200 sq. m

PMAY Subsidy Application Process

The application process involves the following steps:
  • Visit and enter necessary details, including Aadhaar number and income details.
  • Submit the downloaded form to authorised financial institutions along with necessary documents.
  • Apply for a housing loan from your preferred financial institution listed under PMAY.
  • The financial institution will forward your subsidy application to a Central Nodal Agency (CNA).
  • The CNA disburses the subsidy amount to the lending institution upon verification of your application, thereby reducing the loan amount you need to repay.

Easy Accessibility of PMAY Subsidies 

The simplified application process and the comprehensible details on the PMAY website help worthy applicants enjoy the benefits of PMAY. The partnerships of the scheme with Public and Private sector entities also aids in facilitating the distribution of benefits to eligible applicants.

Learn more about your Home Loan Eligibility here.


The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.

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