The Pradhan Mantri Awas Yojana (PMAY) is a communal welfare scheme introduced in 2015 by the Government of India to provide housing in urban areas. Through this initiative, the Government aims to achieve its mission of housing for all in urban areas by 2022. The initiative provides central assistance using a credit-linked subsidy scheme through implementing agencies which include banks.

How does it work?
Through the PMAY and the credit-linked subsidy scheme, families in India have an opportunity to buy a home at a lower cost by availing interest subsidies. The volume of the subsidy is determined by the level of income earned by the family.

Who can benefit from PMAY?
A family can apply for the benefits offered by the PMAY only if the applicant and his/her family members do not own a pucca house anywhere in India. In the eyes of the PMAY scheme, a family is considered to be a husband and wife along with their unmarried sons and/or unmarried daughters.

How much is the subsidy?
The subsidy is calculated based on the annual income of the household. There are 4 income groups that qualify for the PMAY subsidy. All classes are eligible for a maximum loan tenure of 20 years.|

1. Economically Weaker Section (EWS) - Annual income of less than 3 lakhs
Under the EWS category, families are eligible for a housing loan of upto 6 lakhs with a 6.50% p.a. interest subsidy. Under the EWS category, a family may purchase a house with a maximum carpet area of 30 square meters.

2. Lower Income Group (LIG) - Annual income of 3 - 6 lakhs.
Under the LIG category, families are eligible for a housing loan of upto 6 lakhs with a 6.50% p.a. interest subsidy. Under the LIG category, a family may purchase a house with a maximum carpet area of 30 square meters.

3. Middle Income Group 1 (MIG 1) - Annual income of 6 - 12 lakhs.
Under the MIG 1 category, families are eligible for a housing loan of upto 9 lakhs with a 4.00% p.a. interest subsidy. Households under the MIG 1 category are allowed to purchase a house with a maximum carpet area of 160 square meters.

4. Middle Income Group 2 (MIG 2) - Annual income of 12 - 18 lakhs.
Families under the MIG 1 category are eligible for a housing loan of upto 9 lakhs with a 3.00% p.a. interest subsidy. Households under the MIG 1 category are allowed to purchase a house with a maximum carpet area of 200 square meters.

Find more about the Pradhan Mantri Awas Yojana & Affordable from Aditya Birla Home Finance here. 

Learn more about your home loan eligibility here.

* Terms & conditions apply. The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances.