How to Take a Home Loan Under PMAY (Pradhan Mantri Awas Yojana)

January 21, 2022

By inaugurating Pradhan Mantri Awas Yojana, an exceptional initiative was put forward with the central agenda “housing for all”. The Pradhan Mantri Awas Yojana Home Loan scheme was initially launched on 1st June 2015 in three phases. The motive is to cover urban cities with affordable housing schemes by 31st March 2022 on the 150th Birth Anniversary of Bapu- Mahatma Gandhi. Through PMAY home loans schemes the government will build roughly 20 million houses across the nation. Moreover, the Pradhan Mantri Home Loan scheme embraces a Credit Linked Subsidy Scheme for entitled beneficiaries including EWS, LIG, and MIG categories. 

Process To Take a Home Loan Under PMAY Scheme

To proceed for an Awas housing finance under PMAY, you will have to follow up the below-depicted procedure:

Probe the Income Threshold 

When you finally decide to count on Pradhan Mantri Awas Yojana Home Loan, the foremost crucial thing you need to check upon is your income threshold. Your income threshold must fall in any of the PMAY home loans category i.e., EWS, MIG, and LIG. As per your income threshold, the PMAY scheme depicts the carpet area that can be proposed to you. To examine the actual amount of benefit you can grab from PMAY contrary to other home loan products, ponder the home loan EMI calculator. 

After getting a ballpark figure of the amount you can get under PMAY home loans, fill up the PMAY application online. Although, you can opt for offline mode too. It thoroughly depends upon your convenience. 

Fill out the PMAY Application Online

Contemplating the customer’s convenience, the PMAY application can be filled bilaterally, either online or offline. You have to follow up the mentioned steps to apply for Pradhan Mantri Home Loan through an online approach:

  1. Visit the official website of PMAY that is
  2. Click on the tab named ‘Citizen Assessment’ and further select the category you want to apply for.
  3. Next to this you will have to mention Aadhar Card details. This allows you to link your Aadhar number with your loan application.
  4. After the submission of Aadhar details, you will get diverted to the key application form. Submit other necessary details including personal details as well as employment details.
  5. Finally, click on the ‘Save’ tab to save the filled PMAY application.

After stockpiling your loan application with the requisite details, you can move further with the Pradhan Mantri Awas Yojana Home Loan.

Proceed Further with the Loan Application

Once you are done with the completion of the PMAY application form regardless of the medium i.e., online or offline, the next crucial step is to visit the financial company or bank. To take advantage of the provision subsidy on the PMAY home loans you will have to submit the application to the chosen bank. You will have to submit notable documents including proof of income, investment details, co-applicant details together with the PMAY application. 

Eligibility Criteria for Pradhan Mantri Home Loan

  • The PMAY scheme is specifically designed for the beneficiary families involving the spouse along with unmarried children. Any other adult member of the family who is earning will be considered as a discrete household within the MIG category. 
  • An applicant can apply for PMAY home loans if and only if the applicant, co-applicant, or any other family member doesn’t have a registered house in their name across India. 
  • In the event of married couples, one of them or both would be entitled to a sole subsidy.
  • Previously there should be no benefits availed from any housing scheme promoted by the government counting PMAY.
  • Housing loan borrowers, who took advantage of the PMAY subsidy but subsequently opted for a home loan balance transfer, are no more eligible for claiming the benefits once more. 
  • Beneficiary families who fall within the category of MIG income group must furnish the Aadhaar numbers to unlock various subsidy benefits.

PMAY Home Loans Eligibility Guidelines following Income Criteria

1. EWS and LIG

Eligible Income of the Family- The applicant must have below mentioned household income on yearly basis:

  • For the EWS category the income must be Upto INR 3 lakh
  • For LIG category the income must fall in the range of INR 3 lakh to INR 6 lakh

Woman Ownership- To avail Pradhan Mantri Awas Yojana Home Loan, woman ownership has been made inescapable. No matter if you are purchasing a new house or an existing one, an adult female family member must be the owner or co-owner of the property. Although, this condition is not compulsory in the event of house construction, and renovation of the old house. Furthermore, if there is no adult female in the family then this parameter is waved off, and the male member can be the sole owner of the house.

Carpet Area- At max, you can get the following carpet area under the EWS and LIG scheme:

  • As per the EWS scheme, the maximum carpet area is restricted to 30 sq. mts.
  • As per the LIG scheme, the maximum carpet area is restricted to 60 sq. mts.

2. MIG I and MIG II

Eligible Income of the Family- The applicant’s annual household income must fall within the range of:

  • For the MIG-I category, it should be between INR 6 lakh to INR 12 lakh
  • For the MIG-II category, it should be between INR 12 lakh to INR 18 lakh

Woman Ownership- To avail of the benefits of the MIG I and MIG II category having woman ownership is not mandatory. 

Carpet Area- The maximum carpet area which you can get under these two schemes are:

  • For the MIG-I scheme, you can get 160 sq. mts.
  • For the MIG-II scheme, you can get 200 sq. mts.

Process for Claiming Benefits of PMAY Interest Subsidy

Under PMAY the home loan interest subsidy is put to route through two nodal agencies. These are Housing and Urban Development Corporation or HUDCO and NHB. These central government institutions carry forward the task of centralizing the subsidy as per the pre-listed financial institutions. It further caters the borrowers to avail of the benefits of interest subsidy without any hindrance. 

Procedure to Claim Pradhan Mantri Home Loan Interest Subsidy Benefit

  • After the disbursement of the home loan, the lender sends the essential details of the borrower to NHB (National Housing Bank). It is done to perform data validation along with other checks.
  • After carrying out the due diligence procedure NHB accredits the subsidy only to the eligible borrowers.
  • Next to this, the subsidy amount is disbursed to the finance provider based upon the eligible borrowers.
  • After collecting the subsidy amount sanctioned by the NHB, lenders go further with the procedure. The same amount is credited within the specific home loan accounts. Further, the amount is adjusted in the sanctioned loan accordingly.

Features and Benefits Pradhan Mantri Awas Yojana Home Loan

  1. Under PMAY home loans, the subsidy rate of interest is stipulated at 6.50 percent per Anum on a home loan that is disbursed for 20 years of tenure. This applies to all PMAY scheme beneficiaries.
  2. Differently abled individuals and senior citizens are given utmost priority in the allotment of ground floors.
  3. Sustainable methods and eco-friendly technologies are considered for the construction purpose. 
  4. The scheme encloses whole urban areas across the country including 4041 statutory towns. The priority is given to the covered 500 Class I cities. The entire procedure will be carried out in three phases.
  5. The credit-linked subsidy or CLSS itself gets implemented for all statutory towns (from early-stage).

Features and Benefits of EWS/LIG category

Particulars EWS LIG
Eligible Household Income on Annual basis INR 3 lakh Between INR 3 lakh to INR 6 lakh
Maximum Carpet Area in square meters 30 sq. mts. 60 sq. mts.
Subsidy will be Calculated on the Maximal Loan Amount of INR 6 lakh INR 6 lakh
Interest Subsidy (Annually) 6.50 percent  6.50 percent
Subsidy Amount (maximum) INR 2.67 lakh INR 2.67 lakh
Maximum Home Loan Tenure  20 years 20 years
Discount Rate for Calculating NPV (Net Present Value) of the interest subsidy 9 percent 9 percent
Woman Ownership Mandatory (excluding construction or renovation loans) Mandatory (excluding construction or renovation loans)
Scheme Validity 31st March, 2022 31st March, 2022
Applicable for Loans approved either on 01/01/2017 or after this date Loans approved either on 01/01/2017 or after this date

Features and Benefits of MIG-I/MIG-II Category

Particulars MIG-I MIG-II
Eligible Household Income on Annual Basis Between INR 6 lakh to INR 12 lakh Between INR 12 lakh to INR 18 lakh
Maximum Carpet Area in square meters 160 sq. mts. 200 sq. mts.
Subsidy will be Calculated on the Maximal Loan Amount of Upto INR 9 lakh Upto INR 12 lakh
Interest Subsidy (Annually) 4.00 percent 3.00 percent
Subsidy Amount (maximum) INR 2.35 lakh INR 2.30 lakh

Types of PMAY Scheme

The PMAY schemes are divided into two sub-categories based upon the area of focus:

Pradhan Mantri Awas Yojana Gramin (PMAY-G):

The Pradhan Mantri Awas Yojana – Gramin was earlier well-known by the name of Indira Awas Yojana. It was christened as the PMAY-G in the year 2016. The central agenda of this exclusive scheme is the provision of rock-bottom and approachable housing units. The provision is restricted to eligible beneficiaries across rural regions across India (except Chandigarh & Delhi). As per the PMAY-G scheme, the Indian Government and State Governments split the development cost. The share is divided in terms of ratio. For the plain region, the ratio is 60:40 whereas for the North-Eastern as well as hilly regions this ratio is 90:10.

Pradhan Mantri Awas Yojana Urban (PMAYU):

The Pradhan Mantri Awas Yojana targets urban areas across India. Currently, in total 4,331 towns & cities are enrolled under the PMAY scheme. It will function within three distinct phases:

  1. Phase 1: Within Phase 1, the government set a target for covering 100 cities across various states & UTs around the nation. This target was met from April 2015 to March 2017.
  2. Phase 2: As per Phase 2, further 200 cities were targeted from April 2017 to March 2019 across the nation.
  3. Phase 3: In Phase 3, the target is to cover the cities left after the successful completion of Phase 1 & Phase 2. This target is all set to be met at last by March 2022.

Pradhan Mantri Awas Yojana (PMAY) Subsidy Calculator

The vital sight of the Pradhan Mantri Awas Yojana Home Loan scheme is to disentangle the home loan procedure for the weaker sections. All this will be accomplished by offering loans at reasonable rates. Thus, with subsidized loans, you get the option to pay reduced EMIs as per your financial condition. 

Easily calculate the monthly EMIs by logging in to the Pradhan Mantri Awas Yojana portal and filling up the required details. Here is the link to the home loan EMI calculator:

  • Mention the principal amount in INR
  • The interest rate
  • The total home loan tenure in months


What is the minimum time in which the subsidy amount from PMAY gets credited to the beneficiary’s account?

The subsidy amount from PMAY is usually credited within 3 to 4 months within the beneficiary’s account. It thoroughly depends upon the verification process carried out by the government.

How to obtain Assessment ID for Pradhan Mantri Awas Yojana?

The Assessment ID is engendered by the PMAY portal. It is generated after the successful completion of the registration process. You can use the ID to trace the status of your loan application.

Is a woman eligible for the PMAY scheme?

Pradhan Mantri Awas Yojana gives preference to women applicants specifically who run their families and belong to lower-income groups. Although, if any of your family members including husband and father has applied for the same then your application will be rejected.

What special benefits are given to senior citizens?

PMAY grants special benefits to senior citizens by providing them home on ground floors. Moreover, you need to make sure that you get into the process at the early stages as the same has to be shared with the differently abled applicants too. So, don’t miss the opportunity by being a late applicant.

What does DBT stand for?

DBT stands for Direct Benefit Transfer. As per DBT, all beneficiaries receive the associated funds in an installment pattern. As per the scheme it will be directly credited within the beneficiary’s accounts. The applicant doesn’t have to run to offices and banks, multiple times.

What is the purpose of Geo Tag?

It is crucial to maintain transparency within the housing project. With geo tag metadata will be added with a photograph that will be present at your home location on the map. It will help in retaining recent satellite imagery to depict the project's progress. With the help of geo tag you will be able to remotely monitor the housing unit.

For how long will the PMAY scheme last?

The PMAY home loans project is expected to last by 2022. The target is to have beneficiaries across all regions by the end of 2020. The construction of the project and residency might take a longer time.

What is the required annual income for PMAY?

As per PMAY, the beneficiary can’t have an annual income of more than INR 18 lakhs. Although, there are no predefined lower limits for the income requirement.

What is the role of the Central Nodal Agency in the PMAY project?

The central nodal agencies are responsible for carrying out the verification process. After the completion of verification, the eligible beneficiaries are disbursed with a subsidy amount that is directly sent to the applicant’s account. In simple words, they perform the credit-linked subsidy.

What is the meaning of carpet area in Pradhan Mantri Awas Yojana?

The carpet area stands for the area that is enclosed within the walls. It is the actual area for laying the carpet. This area is computed excluding the inner wall’s thickness.

What is FAR in the Pradhan Mantri Home Loan Scheme?

Go through the following equation to easily understand what FAR depicts: Floor Area Ratio = Total enclosed area x 100 / Plot area. Although, certain cities might have varied FAR definitions

Can you apply for PMAY without an Aadhaar Card?

To apply for PMAY through online mode, it is compulsory to own an Aadhaar Card. It is recommended to get your Aadhar Number via the nearest CSC or Common Service Centre. Do this as soon as possible as it can interrupt your PMAY application.

Is there any registration fee associated with PMAY?

You have to pay INR 25 in addition to service tax as an application fee. This fee will be paid at Common Service Centres. In addition, you don’t have to pay any fee when you apply for PMAY online.

What is the process to apply for the PM Awas Yojana Online?

Visit the official portal of PM Awas Yojana. The entire process is quick and easy. Enter your Aadhar number and follow on-screen directions. You just have to fill the form with basic personal details and that’s it. You are done.

How can you check the PMAY Application Status?

To track the PMAY application status, all you need to do is log in to the website at From the available tab select the tracking option and follow up the shown directions. It will show the status of your PMAY application.

Can I edit the details after the submission of the PMAY application?

1. Visit the PMAY official portal 2. Enter the availed application reference number in addition to Aadhaar details 3. Select the “Edit” option 4. Edit the existing details with the correct ones

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Category:Home Loan

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