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How to Calculate Your Savings While Buying a House Under the Pradhan Mantri Awas Yojana

Who does not want to live in their own home? It is the dream of so many people in India to buy or build a house. They save money every month for years, but the rising cost of property jeopardizes their plans. 

The availability of the home loan is also not viable for them. It is because of it being a long-term obligation and a payment of bigger home loan interest charges. 

It is where the Indian Government has initiated an affordable housing solution for the urban and poor population. It is called the Pradhan Mantri Awas Yojana (PMAY). 

The objective of the PM Awas Yojana is to build houses using eco-friendly and sustainable technologies. The PMAY also plans to do that for all by 2022. 

The Pradhan Mantri Awas Yojana also has a credit linked subsidy scheme (CLSS) where it offers an interest subsidy on home loans up to 6.5% to Rs.2.67 lakh. 

Depending upon your PMAY eligibility, you can make the most of it and save on the interest portion of housing finance. Read on!

Who can avail of the benefits of the PMAY scheme?

  1. Economically Weaker Section (EWS) taking home an annual income of up to Rs.3 lakh. 
  2. Low Income Group (LIG) with a yearly income of up to Rs.6 lakh. 
  3. Middle Income Groups 1 and 2 (MIG 1 and 2) with a yearly income between Rs.6 lakh and Rs.12 lakh and Rs.12 lakh and Rs.18 lakh, respectively. 

As per your income group, the Pradhan Mantri Awas Yojana eligibility for home loan subsidy will differ. 

What PMAY benefits you can enjoy on home loan interest subsidies?

  • If you belong to the EWS income category, you can enjoy a 6.5% home loan interest rate subsidy. The eligible home loan amount for claiming such a deduction is up to Rs.6 lakh over a 20 years tenor. The maximum carpet area should be 30 sq mt to enjoy a maximum subsidized interest amount of up to Rs.2.67 lakh. 
  • Applicants belonging to LIG group can avail of a 6.5% subsidy on home loan interest rate on a maximum loan amount of up to Rs.6 lakh. The rest of the conditions remain the same, like EWS except carpet area increasing to 60 sq mt. 
  • For MIG 1 applicants, they can claim a 4% subsidy on home loan interest rate with a maximum subsidized amount of up to Rs.2.35 lakh. The maximum housing loan amount to avail of such benefits is up to Rs.9 lakh over 20 years. The maximum carpet area of your home needs to be 160 sq mt.
  • For MIG 2 PMAY home loan applicants, they are eligible to claim a 3% subsidy on the home loan interest rate. The maximum eligible subsidized amount is Rs.2.3 lakh over a tenor of 20 years. The maximum home loan amount to claim is Rs.12 lakh. The maximum carpet area of your home should also be 200 sq mt to claim such benefits. 

Who is eligible to apply for the PM Awas Yojana?

  • The beneficiary family should not have any pucca home anywhere in the country. A beneficiary family comprises a husband, wife, unmarried sons and daughters. 
  • The applicant must not have availed the housing scheme benefits of any earlier plans operated by the Central and State Governments.

You can apply for the Pradhan Mantri Awas Yojana as per your income groups. Once done, you can check your name in the PMAY list

You can do that on the official website of PMAY after following a few steps. 

With PMAY in action, you can dream of moving into your first ever home and still save home loan interest subsidies.   






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