PMAY Subsidy Scheme

The PMAY Subsidy Scheme: If you are planning to buy your dream home and seeking a home loan, the Pradhan Mantri Awas Yojana (PMAY) can be a very good available option for you. Well, undoubtedly, there are more available loan options that you can get to purchase your home. But if you want to get a subsidized loan and want to avail a minimal ROI, you will hardly find any better option rather than PMAY. So, if you have gained enough interest to know more about the PMAY subsidy scheme, you just landed at the right place. Let’s explore more on this so that you can have fewer hazards while applying for the PMAY subsidy scheme.

What is PMAY?

Well, before we proceed to the features, benefits, eligibility criterion, subsidy under PMAY, and other valuable information, let’s understand that what is PMAY? The Pradhan Mantri Awas Yojana (PMAY) is nothing but an initiative by the Indian government to provide adequate financial support to its needy citizens for availing subsidized housing loans. The subsidy under pmay  was initially launched on 1st June 2015. And it is expected to complete by 31st March 2022.

The Different Beneficiaries of PMAY

The PMAY home loans come in different beneficiaries for different income groups. Below is the list of different beneficiaries, you can check them for sure.

BeneficiariesIncome P/A
MIG – I/ Middle Income GroupRs. – 6 Lakh – below 12 Lakh
MIG – 2/ Middle Income GroupRs. – 12 Lakh – below 18 Lakh
LIG/ Lower Income GroupRs. – 3 Lakh – below 6 Lakh
EWS/ Economically Weaker SectionBelow Rs. 3 Lakh

The Different Types of PMAY

Alike the different beneficiaries, the PMAY subsidy scheme is further divided into two different categories based on the living areas.


PMAY – G or Pradhan Mantri Awas Yojana – Gramin was once known as Indira Awas Yojana. In 2016, the Indira Awas Yojana was renamed as PMAY – G. This special scheme is aimed to provide financial support for housing to the eligible beneficiaries of rural India except for Delhi and Chandigarh. Under this PMAY subsidy scheme, the development cost is segregated between central and each state government in a 60:40 ratio for the plain areas and a 90:10 ratio for the hill areas.


PMAYU or the Pradhan Mantri Awas Yojana – Urban is aimed to provide financial support for housing to the urban areas in India. There is a total of 4331 towns and cities that are covered under this scheme so far. After completing two successful phases, the PMAYU is presently working on its 3rd phase. Under the 3rd phase, the government of India is focusing to cover all the other cities and towns that were not covered during the last two phases. The government of India is also determined to complete this phase by 31st March 2022.

The Eligibility Criterion

Well, the willing applicants must meet certain criteria to avail of the loan facility under the PMAY subsidy scheme. The PMAY subsidy eligibility criterion is as follows.

  • If the willing applicants or any family members do not own any house anywhere in India, they are eligible for availing of the loan facility under the PMAY subsidy scheme.
  • The annual income of the applicants (Including spouses) must not exceed Rupees 18 lakhs to avail of the loan facility.
  • If the applicants have already taken any loan under the PMAY subsidy scheme, they will not be eligible for opting for the same facility for the second time.
  • The area of the residential building must be listed in the PMAY area to avail of the loan facility under the PMAY subsidy scheme.

PMAY Subsidy Scheme

The PMAY home loan subsidy scheme benefits differ for the different beneficiaries. Below are the subsidy benefits that can be availed under PMAY.

BeneficiariesSubsidy on InterestMaximum Loan Amount to Avail Subsidy
MIG – I4% p.a.Rs. 9 Lakh
MIG – II3% p.a.Rs. 12 Lakh
LIG6.50% p.a.Rs. 6 Lakh
EWS6.50% p.a.Rs. 6 Lakh

How to Get Subsidy on Interest?

Well, there are some specific processes for availing subsidy on interest under the PMAY subsidy scheme. A step-by-step guide can help you in a better way to avail the subsidy benefits.

  • Apply for the subsidy under PMAY while applying for any home loan from the listed lending institution under the PMAY scheme.
  • The same will be reviewed by the lending institution, if you are eligible for the benefits then they will process your application by sending it to the central nodal agency.
  • Once the application reaches the central nodal agency, they will verify it and if you are eligible, they will disburse the subsidized amount to the lending institution in which you have applied for the home loan.
  • After receiving the subsidy amount, the lending institution will credit it to your account.


So, we hope that you get several important pieces of information about the PMAY subsidy scheme. See, owning a beautiful house is always a dream for anyone. And especially, if you can get additional financial benefits, it is always better to take such advantages. Therefore, try availing of the benefits of the PMAY subsidy scheme while applying for a home loan.