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How to Avail Housing Loan subsidy on PMAY

The introduction of Pradhan Mantri Awas Yojana (PMAY), catering to the housing needs of the mid-income to economically weaker segments is an integral aspect under the ‘Housing for All by 2022’ mission. The mission is to provide central assistance to implementing agencies through States and UTs for providing houses to all eligible families/beneficiaries by 2022. This route map has been set to facilitate the betterment of the people, thus resulting in the upliftment of the economic growth of the country.


The scheme categorises the applicants into three core groups i.e. Middle Income Group (MIG), Lower Income Group (LIG) and Economically Weaker Sections (EWS). Each group is divided as per the annual income per annum for the household. The MIGs have a cap of Rs 6 to 18 lakh, the LIGs have a cap of Rs 3 to 6 lakh whereas the EWS have an annual income cap of Rs 3 lakh.



The Pradhan Mantri Awas Yojana (PMAY) mission has four distinct verticals and will be implemented through them, thus giving viable options to beneficiaries, Urban Local Bodies (ULBs) and State Governments. These four verticals are as below:


  1. "In situ" Slum Redevelopment
  2. Affordable Housing through Credit Linked Subsidy
  3. Affordable Housing in Partnership
  4. Subsidy for beneficiary-led individual house construction


The key features of Pradhan Mantri Awas Yojana (PMAY) can be summarised into the following points:


  • Under the ‘Housing for All’ scheme, home loans are offered at a subsidised, 6.5% rate of interest for a tenure of up to 15 years.
  • Additionally, a special preference thought is also given for the senior citizens and the differently-abled people with houses on the ground or lower floors.
  • Eco-friendly and sustainable technologies to be used for the construction of the houses.
  • The scheme is a three-phased project with the focus of ensuring 4041 statutory towns.
  • The scheme can be availed by first-time home buyers who have not used any other assistance under housing schemes and have applied for a housing loan after January 1, 2017.


 The process of applying for the Pradhan Mantri Awas Yojana is:

  • Step 1: Apply for home loan from any Bank or NBFC whoever you find best for your requirement and providing subsidy.
  • Step 2: Visit the official website of PMAYand download the subsidy scheme application form.
  • Step 3: Take a printout of this form and fill up the required details with accurate information.
  • Step 4: Submit the filled form along with the required documents to an office accepting these in the nearby locations.
  • Step 5: If you are found to be eligible your application will be forwarded to Central Nodal Agencies (CNA).
  • Step 6: If your application gets approved, CNA will send the subsidy amount to the particular lender who have lent you the money.  
  • Step 7: This subsidy amount will be credited to your home loan account, thus decreasing the total principal amount of your loan.


Endeavouring to make housing available for all at an affordable price, the Pradhan Mantri Awas Yojana will augment the prosperity of the Nation’s citizens who have not been able to afford a home of their own till now.

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