Pradhan Mantri Awas Yojana (PMAY) is the government’s flagship affordable housing scheme that provides interest subsidy on home loans for economically weaker sections and lower-income groups. The Credit Linked Subsidy Scheme (CLSS) component can save beneficiaries ₹2.3-2.67 lakh on their home loan interest, making homeownership accessible for millions of Indians.
PMAY Eligibility Criteria
Economically Weaker Section (EWS): annual household income up to ₹3 lakh, subsidy of 6.5% on loan up to ₹6 lakh for 20 years. Lower Income Group (LIG): income ₹3-6 lakh, subsidy of 6.5% on loan up to ₹6 lakh. Middle Income Group I (MIG-I): income ₹6-12 lakh, subsidy of 4% on loan up to ₹9 lakh. Middle Income Group II (MIG-II): income ₹12-18 lakh, subsidy of 3% on loan up to ₹12 lakh. Neither the beneficiary nor any family member should own a pucca house anywhere in India. The property must be a first-time purchase.
Subsidy Amount Calculation
For EWS/LIG: 6.5% subsidy on ₹6 lakh for 20 years = net present value subsidy of ₹2.67 lakh credited upfront to the loan account. For MIG-I: 4% on ₹9 lakh for 20 years = ₹2.35 lakh. For MIG-II: 3% on ₹12 lakh for 20 years = ₹2.30 lakh. The subsidy is calculated at NPV and credited directly to your loan account, reducing the outstanding principal. You can take a larger loan than the subsidy-eligible amount — the subsidy applies only up to the specified limits.
How to Apply for PMAY
Through your home loan bank: most scheduled banks and housing finance companies are PMAY lending institutions. Inform them at the time of loan application. Through the PMAY portal (pmaymis.gov.in) with Aadhaar for direct application. Through Common Service Centers (CSC) for those needing assistance. The bank validates eligibility, disburses the loan, and claims subsidy from the Central Nodal Agency (NHB/HUDCO). The subsidy is credited to your loan account within 3-6 months of disbursement.
Property Requirements
EWS: carpet area up to 30 sq meters. LIG: carpet area up to 60 sq meters. MIG-I: carpet area up to 160 sq meters. MIG-II: carpet area up to 200 sq meters. The property must be in an urban area covered under PMAY-Urban. For rural areas, PMAY-Gramin has separate provisions. Construction or purchase of a new house qualifies; enhancement or renovation of existing houses may qualify under specific components.
Is PMAY still available in 2026?
PMAY-Urban was originally targeted for completion by 2022 but has been extended. The government has launched PMAY-Urban 2.0 with revised guidelines and continued subsidy provisions. Check the official PMAY portal for current status, updated eligibility criteria, and application deadlines. The scheme’s continuation depends on government policy and budget allocations.