Pradhan Mantri Awas Yojana is one of the most popular housing schemes in India, aiming to provide a boost to those without homes of their own through a variety of programmes. Launched in 2015, it promised to build 20 million urban houses and 29.5 million rural houses, all of which will feature basic amenities like gas, electricity and water. The scheme is currently underway in both urban and rural India and as part of its Credit Linked Subsidy Scheme (CLSS) component, eligible beneficiaries can avail of an interest subsidy on a home loan under PMAY. This component of PMAY benefits those from low and mid-income groups to get an interest subsidy of up to 6.5% on a housing loan, which offers savings up to Rs. 2.67 lakh.
How to avail an interest rate subsidy on a home loan under PMAY:
Eligibility criteria to avail PMAY benefits
PMAY eligibility criteria include four categories of beneficiaries divided as per annual household income. To apply for a home loan under PMAY and avail of PMAY benefits, you first need to qualify for it. Remember, beneficiaries from each category are eligible for a different set of interest rate subsidies and PMAY benefits. The table below shows the four categories and their corresponding benefits.
| Economically Weaker Section (EWS) | Lower Income Group (LIG) | Middle Income Group-I (MIG-1) | Middle Income Group-II (MIG-II) | |
| Annual household income | Less than Rs.3 lakh | Between Rs.3 lakh and Rs.6 lakh | Between Rs.6 lakh and Rs.12 lakh | Between Rs.12 lakh and Rs.18 lakh |
| Housing loan interest subsidy | 6.5% | 6.5% | 4% | 3% |
| Maximum home loan subsidy | Up to Rs.2.67 lakh | Up to Rs.2.67 lakh | Up to Rs.2.35 lakh | Up to Rs.2.30 lakh |
| Maximum housing loan amount | Up to Rs.6 lakh | Up to Rs.6 lakh | Up to Rs.9 lakh | Up to Rs.12 lakh |
| Loan tenor | 20 years | 20 years | 20 years | 20 years |
| Carpet area | Up to 30 square meters | Up to 60 square meters | Up to 160 square meters | Up to 200 square meters |
Apart from this, you also need to meet the following requirements to receive the interest subsidy on a home loan under PMAY.
- Beneficiaries of the CLSS component must consist of only the husband, wife and unmarried children.
- A female member of the family is mandated to own or co-own the house for beneficiaries under the EWS and LIG categories.
- Neither you nor anyone in your family must own a pucca house anywhere in the country and must not be beneficiaries of any other government housing schemes in India.
You can easily determine your eligibility using an online PMAY eligibility calculator in just a few seconds by providing your income data, loan amount, and a few other details.
Keep in mind that those from the MIG categories may use the CLSS benefit to acquire and construct a home while those from EWS and LIG categories may also use it to enhance existing homes. In addition, the government gives preference to women, minorities, manual scavengers, those from Scheduled Castes/ Scheduled Tribes/ Other Backward Classes, transgenders, and those who have disabilities.
Application procedure to avail of home loan subsidy under PMAY
To avail of the interest subsidy on a home loan under PMAY, follow the steps given below:
- First, check if you meet the beneficiary terms by using the PMAY eligibility calculator or by going through the list yourself
- Next, choose a lender enlisted under the PMAY scheme, who offers PMAY benefits
- Apply for a home loan with one of these lenders and fill the application form for the CLSS subsidy
- Once your home loan application is approved, the lender will transfer the loan amount into your account and then contact the Central Nodal Agency who, releases the subsidy to the lender
- On receiving the subsidy, the lender will deposit the amount into your account, enabling you to pay lower EMIs
Note that you have to pay EMIs per the original interest rate until the lender’s subsidy application is approved. However, you will be compensated for any extra amount you pay to the lender. You can also check the PMAY status regarding the approval of your subsidy here by entering your application ID.
To ensure an affordable borrowing experience and to avail of PMAY benefits, apply for the Bajaj Housing Finance Home Loan. Apart from the interest subsidy to qualifying beneficiaries, this loan offers a high loan amount at a competitive rate of interest along with features like simple eligibility parameters, speedy disbursal, zero charges on prepayment and early foreclosure, and the option of a top-up loan to meet your additional needs for finance.
To enjoy a more convenient experience, apply online today!