Pradhan Mantri Awas Yojana
Features & Benefits
The Government of India launched the ‘Housing for All’ mission in 2015, with the aim of helping 20 million Indians own a home by 2020. Under this mission, also called Pradhan Mantri Awas Yojana, you can get an interest subsidy on your home loan, based on your household income category.
There are 4 categories defined under this scheme. These are:
-
Economically Weaker Section (EWS)
If you belong to this section, you can get interest subsidy on home loans for:
-
Acquisition of a new house
-
Construction of a new house
-
Construction/addition of rooms, kitchen, toilet, etc.
-
Lower Income Group (LIG)
If you belong to this section, you can get interest subsidy on home loans for:
-
Acquisition of a new house
-
Construction of a new house
-
Construction/addition of rooms, kitchen, toilet, etc.
-
Middle Income Group – I (MIG-I)
If you belong to this section, you can get interest subsidy on home loans for:
-
Acquisition of a new house
-
Construction of a new house
-
Middle Income Group – II (MIG-II)
If you belong to this section, you can get interest subsidy on home loans for:
-
Acquisition of a new house
-
Construction of a new house
Key Parameters
Here are the key parameters* for availing an interest subsidy on your home loan under PMAY, and information on how much subsidy you can avail:
| Particulars | EWS | LIG | MIG-I | MIG-II |
|---|---|---|---|---|
| Household income (rupees per annum) | 0-3,00,000 | 3,00,001-6,00,000 | 6,00,001-12,00,000 | 12,00,001-18,00,000 |
| Eligible housing loan amount for interest subsidy (in rupees) | Up to 6,00,000 | Up to 6,00,000 | Up to 9,00,000 | Up to 12,00,000 |
| Interest subsidy (% per annum) | 6.50% | 6.50% | 4.00% | 3.00% |
| Maximum loan tenor (in years) | 20 | 20 | 20 | 20 |
| Maximum carpet area of the dwelling unit | 30 sq. m. | 60 sq. m. | 160 sq. m. | 200 sq. m. |
| Discount rate for net present value (NPV) calculation of interest subsidy (%) | 9.00% | 9.00% | 9.00% | 9.00% |
| Maximum interest subsidy amount (in rupees) | 2,67,280 | 2,67,280 | 2,35,068 | 2,30,156 |
| Lump sum amount paid per sanction to PLIs in lieu of processing fee (in rupees) | 3,000 | 3,000 | 2,000 | 2,000 |
| Application of scheme on existing home loans sanctioned on or after | 17.06.2015 | 01.01.2017 | ||
| Applicability of no pucca house | Not for renovation/upgradation | Yes | Yes | |
| Ownership/co-ownership of a woman | Mandatory for new acquisition,Not mandatory for existing property | Not mandatory | Not mandatory | |
| Quality of house/flat construction | National Building Code, BIS Codes, NDMA Guidelines to be adopted | |||
| Approvals for building design | Compulsory | |||
| Basic civic infrastructure (water, sanitation, sewage, road, electricity etc.) | Compulsory | |||
Disclaimer
*The parameters mentioned above are based on the scheme framed by the Government of India under the Pradhan Mantri Awas Yojana (PMAY). These are subject to change as and when there is a change in the scheme by the Government of India.