Home Finance How to Apply For Home Loan Subsidy under Pmay

How to Apply For Home Loan Subsidy under Pmay


Pradhan Mantri Awas Yojana or PMAY is a government initiative launched in 2015 to provide affordable housing to individuals who do not own a home. This scheme offers a subsidised interest rate to a lower economic group through the Credit Linked Subsidy Scheme (CLSS). 

As per a report, the demand for affordable houses stood at nearly 1.12 crore. Moreover, by 2019, nearly one crore houses have been sanctioned under this scheme.

The names of all beneficiaries are updated in the official PMAY list. Individuals can check their eligibility online from this list and apply for a home loan under this scheme. 

PMAY subsidy scheme extends its benefit to the Economically Weaker Section/Lower Income Group (EWS/LIG) and Middle Income Group (MIG I &II). Thereby it covers the people from all social strata.

What are the factors of PMAY?

The Pradhan Mantri Awas Yojana for home loan scheme offers financial assistance at an affordable interest rate. An applicant must be aware of the various eligibility parameters that one must meet to avail of PMAY benefits.

  • Loan amount 

Purchasing a home or constructing a residence requires a substantial investment. The PMAY scheme eases this finance process. They offer subsidies on housing loans, where the maximum loan principal is Rs.9 lakh for MIG I group and Rs.12 lakh to MIG II beneficiaries. 

  • PMAY subsidy 

The home loan subsidy offered under the PMAY scheme is considered to meet up the needed expenses. Individuals falling under EWS or LIG will receive around Rs.2.67 lakh subsidy. Rs.2.35 lakh subsidy is granted to MIG I and Rs.2.30 lakh to MIG II. This feature would bring down the interest outgo significantly.

  • Interest rate

The interest rate subsidy for individuals with annual income between Rs.6 lakh and 12 lakh is 4%. Similarly, the ones with an annual income ranging between Rs.12 lakh and Rs.18 lakh are qualified to avail a 3% interest rate subsidy. The maximum repayment tenor for both is 20 years. 

  • Carpet area 

This PMAY subsidy is only applicable to units, measuring 30 and 60 square metre in carpet area for the EWS or LIG group, respectively. Similarly, 160 and 200 square metre is assigned for individuals falling under MIG I and MIG II, respectively. 

 How to make a PMAY application?

Apart from fulfilling the above said factors, an individual needs to make PMAY registration.  This process is a necessary step to receive benefits of Pradhan Mantri Awas Yojana PMAY. 

Here is a step-by-step guide to apply for Pradhan Mantri Awas Yojana online. 

  1. Visit the official PMAY website.
  2. Open the ‘Citizen Assessment’ tab and select the suitable category based on financial background. 
  3. After selecting the income category, one needs to enter Aadhaar details. 
  4. Individuals have to fill up a PMAY online application form next by entering professional, personal and financial information. 
  5. Finally enter the captcha code and click on the submit option. 
  6. On successful submission, individuals will get an application number that is needed for authentication.

For instance, if an applicant fails to fulfil the eligibility parameters, they can opt for a home loan from an HFC that offers substantial funds up to Rs.3.5 crore with simple eligibility. 

They also extend pre-approved offers that simplify the loan application process and make it prompt. Such offers are levied on financial products like loan against property, home loans and many more. Check your pre-approved offer by entering basic details like name and mobile number. 

Since, this application and documentation is conducted online, one must be acquainted with the process. Individuals should also research about the house allotment process to make the most of the PMAY subsidy.