In the past decade or so, there has been an upswing in the demand for home loans across the country. One of the reasons for it could be attributed to the fact that today all major banks and financial institutions are offering affordable housing loans. Looking at this positive trend and in order to further aid home buyers, the Government of India launched a home loan subsidy scheme called the Pradhan Mantri Awas Yojna (PMAY) in 2015. Under this scheme, the government had aimed that every household in India must have a pucca house by 2022; however, the timeline of this home loan subsidy scheme has now been extended up to 2024. You can use a PMAY subsidy calculator to check the exact 2.67 lakh subsidy on home loan in 2024 that you get under the PMAY subsidy scheme.
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The Pradhan Mantri Awas Yojana (PMAY) offers a Home Loan Subsidy to make affordable housing accessible to various economic sectors of society. This initiative is part of the government’s effort to ensure “Housing for All by 2022.” The scheme offers an interest subsidy on housing loans for the acquisition/construction of houses. The intent is to provide housing to all by facilitating affordable loans for the weaker sections through a Credit Linked Subsidy Scheme (CLSS). The subsidy depends on the income category of the applicant and can significantly reduce the cost of borrowing by directly subsidizing the principal amount and, consequently, reducing the EMI.
| Pradhan Mantri Awas Yojana (PMAY) Scheme 2024 | Details |
| Scheme Name | Pradhan Mantri Awas Yojana (PMAY) |
| Started Year | 2016 |
| Extended Year | 2024 |
| Benefits | Two-room pakka residence |
| Last Date To Apply | 31 December 2024 |
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Here’s the information regarding the Pradhan Mantri Awas Yojana (PMAY) 2024 organized into a tabular format for a quick view:
| Component | Description | Target Group | Key Documents Required |
| PMAY-G (Gramin) | Financial assistance for constructing homes in rural areas. | Residents of rural areas | Aadhar card, Job card, Income certificate |
| PMAY-U (Urban) | Provides housing via interest subsidies in urban areas. | City dwellers, especially economically weaker sections | Aadhar card, Income certificate, Voter ID |
| CLSS | Subsidies on home loan interest rates for lower income groups. | Economically Weaker Section (EWS), Low and Middle Income Groups | Aadhar card, Income certificate, Voter ID |
| ARHCs | Offers subsidized rental housing for urban poor and migrants in cities and towns. | Urban poor, migrants | Aadhar card, Income certificate, Ration card |
Application Process for Home Loan Subsidy
How to Apply for a Home Loan Subsidy
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The PMAY scheme offers subsidies on home loans by the government to individuals if they meet the requisite criteria. The subsidy on the home loan interest under the PMAY subsidy scheme is provided under the Credit Linked Subsidy Scheme (CLSS), which is one of the parts of the PMAY. The CLSS scheme offers govt subsidy on home loans to applicants who fall under the following income categories:
Under the PMAY-CLSS, beneficiaries can avail of an interest subsidy of up to 6.5% on a principal component of up to ₹6 lakhs, depending on their income category. This scheme is categorized into different groups:
The duration for the subsidy can extend up to 20 years or the tenure of the loan, whichever is lower. The subsidy will be credited upfront to the loan account of beneficiaries through lending institutions resulting in reduced effective housing loans and Equated Monthly Installments (EMI).
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For assistance or inquiries about the Credit Linked Subsidy Scheme under PMAY, beneficiaries and applicants can contact the given below helpline number provided by the Ministry of Housing and Urban Poverty Alleviation.
| NHB | 1800-11-3377, 1800-11-3388 |
| HUDCO | 1800-11-6163 |
| SBI | 1800-11-2018 |
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| Beneficiary | Annual Income |
| Middle Income Group II (MIG II) | ₹12 lakh to ₹18 lakh |
| Middle Income Group I (MIG I) | ₹6 lakh to ₹12 lakh |
| Lower Income Group (LIG) | ₹3 lakh to ₹6 lakh |
| Economically Weaker Section (EWS) | Up to ₹3 lakh |
In addition to these, individuals belonging to ST, SC, and OBC categories are also eligible under this scheme. Further, there is a provision for subsidy on home loans for ladies under this scheme, in case they fall under LIG and EWS income groups. Individuals can also use a home loan eligibility calculator to simply check their eligibility for the PMAY scheme.
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| Category | Interest Subsidy | Maximum Loan for Subsidy |
| MIG II | 3.00% p.a. | ₹12 lakh |
| MIG I | 4.00% p.a. | ₹9 lakh |
| LIG | 6.50% p.a. | ₹6 lakh |
Under the MIG II category, an individual can avail housing loan subsidy on a maximum loan amount of ₹12 lakh with the subsidy interest being 3% p.a. The maximum term of a loan based on which the subsidy can be calculated is 20 years. The maximum subsidy amount that is available under this scheme is ₹2.30 lakh.
Applicants belonging to the MIG I category can avail home loan subsidy at the rate of 4% on a maximum loan amount of ₹9 lakh. The maximum subsidy amount one can get under this category is ₹2.35 lakh. The maximum loan tenure that will be taken into consideration for calculation of loan subsidy is 20 years.
Those falling under the Economically Weaker Sections (EWS) or Low Income Group (LIG) category can get a subsidy at the rate of 6.50% on a loan amount up to ₹6 lakh. The maximum subsidy loan amount one gets under this category is ₹2.67 lakh subsidy on home loan. The maximum loan term on which the house loan interest rate subsidy is being offered is 20 years.
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Opting for a home loan subsidy under PMAY can be extremely beneficial, particularly for lower to middle-income families:
The eligibility criteria for the PMAY CLSS subsidy are fairly straightforward:
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To use a Pradhan Mantri Awas Yojana (PMAY) subsidy calculator, you can follow these general steps:
Find a Calculator Online: You can access a PMAY subsidy calculator through various financial service providers or on the official PMAY site. One such calculator can be found on websites like BASIC Home Loan or other housing finance company websites.
Enter Your Details
The calculator will display how much subsidy you are eligible for under the PMAY scheme, which will help you understand the reduced effective interest rate and how much you will save on your monthly EMIs.
Using the PMAY subsidy calculator will give you a clear idea of the financial benefits you can avail of under this scheme, making it easier to plan your finances when purchasing a new home. Make sure to use an updated and accurate calculator to get the best estimates.
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There are 3 ways by which you can check the status of your Pradhan Mantri Awas Yojana (PMAY) subsidy:
1. Online Using Aadhaar or Application ID
2. Using the Assessment ID
3. Via Toll-Free Number
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So if you planning to avail best housing loans in India and you fall under either EWS/LIG/MIG I/MIG II income categories, you can easily get an interest subsidy on your house loan under the PMAY scheme of the Government of India, quite easily.
It generally takes around 3 to 4 months for the subsidy amount from PMAY to be credited to the beneficiary’s bank account.
Any woman who is running a family and falls under the LIG or EWS category can apply for a house loan under the scheme. However, if any other member of the family residing with the woman has also applied for the loan subsidy under the scheme, then in that case the woman’s application will be rejected.
All senior citizens applying under the PMAY scheme will be given priority for ground floor housing. However, since this priority is shared with differently-abled beneficiaries, senior citizens need to apply under this scheme early.
The proposed deadline for this project was 2022; however, it has been extended till the end of 2024. However, this may be further extended to benefit more and more families from different regions of the country.
In order to fill the online application of PMAY, it is mandatory for all citizens of India to have an Aadhaar Card. Those not having an Aadhaar Card can get it done from their nearest Common Service Centers (CSC).
Yes. There is nominal application fee of ₹25 plus service tax, if you process your application at the Common Service Centres. However, there are no charges for online applications.
To obtain the ₹2.67 lakh subsidy under the PMAY Credit Linked Subsidy Scheme (CLSS), you must meet these criteria:
1. Income Bracket: You should fall under the Middle Income Group I (MIG I) with an annual income between ₹6 lakh and ₹12 lakh, or Middle Income Group II (MIG II) with an income between ₹12 lakh and ₹18 lakh.
2. Apply Through a Participating Lender: Approach a bank or financial institution that is registered with the CLSS. They will process your home loan application and apply for the subsidy on your behalf if you qualify.
3. First Home Buyer: You should be buying your first home, and the subsidy applies to a single house per household.
4. Women Ownership: It is beneficial to have a female co-owner to qualify for the subsidy, although this is not a requirement for MIG categories.
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