BASIC TEAM
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6 mins read
Last updated on 12th April 2024
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.
Table of Contents
- Pradhan Mantri Awas Yojana 2024
- Credit Linked Subsidy Scheme
- Home Loan Subsidy Eligibility Criteria
- PMAY Home Loan Subsidy 2024 Categorization
- How to use PMAY Subsidy Calculator
- How do I check the status of the PMAY subsidy
- 10 Banks Offering Govt Subsidy on Home Loans in India
Pradhan Mantri Awas Yojana 2024
| 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 |
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
- Visit Official Website: Depending on your area (urban or rural), visit pmaymis.gov.in or pmayg.nic.in.
- Select Category and Scheme: Choose the applicable category
- Enter Details: Provide all necessary personal and income details.
- Upload Documents: Submit all required documents as listed above.
How to Apply for Home Loan Subsidy
- Website for Urban Applicants: PMAY Urban Official Site
- Website for Rural Applicants: PMAY Gramin Official Site
What is the Credit Linked Subsidy Scheme (CLSS)?
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:
- MIG – II (Middle Income Group 2)
- MIG – I (Middle Income Group 1)
- EWS (Economically Weaker Section)/LIG (Low Income Group)
- Revised EWS (Economically Weaker Section)/LIG (Low Income Group)
Home Loan Subsidy Eligibility Criteria
| 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.
Suggested read: Home Loan Eligibility
PMAY Home Loan Subsidy 2024 Categorization
| 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 |
MIG II
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.
MIG I
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.
EWS/LIG
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.
Suggested read: Home Loan Bank in India
How to use Pradhan Mantri Awas Yojana (PMAY) Subsidy Calculator
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
- Annual Family Income: Input the total annual income of your household.
- Loan Amount: Enter the amount of the home loan you wish to take.
- Loan Tenure: Specify the duration over which you intend to repay the loan.
- Interest Rate: Provide the interest rate expected on the home loan.
- Submission: After entering all the necessary details, submit the information in the calculator.
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.
How do I check the status of the PMAY subsidy?
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
- Visit the official PMAY website (https://pmaymis.gov.in).
- Navigate to the 'Citizen Assessment' section and select the relevant category for your application.
- Enter your Aadhaar number or PMAY application ID, then submit the form to view the status of your application
2. Using the Assessment ID
- Similar to the above method, on the PMAY website, go to the 'Track Your Assessment Status' section.
- Enter your Assessment ID and submit to check your subsidy status.
3. Via Toll-Free Number
- Call the PMAY customer service at 1800-11-3377 or 1800-11-3388. You will need to provide your application details over the phone to receive information about your subsidy status.
10 Banks Offering Govt Subsidy on Home Loans in India
- State Bank of India
- Bank of India
- Bank of Baroda
- Axis Bank
- Punjab National Bank
- IDFC First Bank
- HDFC Bank
- Bandhan Bank
- Canara Bank
- IDBI Bank
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.
FAQs About Home Loan Subsidy
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.
The maximum annual income one should not be more than ₹18 lakh. On the other hand, there are no lower limits for the PMAY scheme eligibility.
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:
- 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.
- 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.
- First Home Buyer: You should be buying your first home, and the subsidy applies to a single house per household.
- 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.
Published on 25th July 2023
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