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Understanding the Nuances of the PMAY Scheme


Despite making great economic progress, India still continues to lag behind when it comes to matters pertaining to housing. There still continue to a large number households which do not have either a roof on their heads or a pucca house. This is because the cost of building or purchasing piece of property is a costly proposition, so much so that there are many for whom having a house is like a dream even after generations.

In order to alleviate the concerns of such families, the Government of India came out with a scheme that is known as the Pradhan Mantri Awas Yojana or the PMAY in short in 2015. It is a credit-linked scheme wherein the interest of the home loan is available at a much subsidized rate. The aim of this scheme is to provide affordable housing to everyone in the country by the year 2022, both in urban and rural areas.

Avail the home loan subsidy under Pradhan Mantri Awas Yojana in 2019 to get benefited. Some of the prominent characteristics of this scheme are as follows -


In order to be eligible for this scheme four groups have been divided based on the annual household income. These are -

- EWS - those whose annual salary is up to Rs. 3 lakhs per annum

- LIG - those whose annual salary is between Rs. 3 lakhs and Rs. 6 lakhs per annum

- MIG I - those whose annual salary is between Rs. 6 lakhs and Rs. 12 lakhs per annum

- MIG II - those whose annual salary is between Rs. 12 lakhs an Rs. 18 lakhs per annum

If your salary falls in any of these categories, you can apply for PMAY subject to meeting the following criteria -

- You cannot have any other house in your name

- In the MIG category, any individual who earns an income is considered as a separate family even if she/he is unmarried

- You need to submit the required self-attested documents confirming your annual salary

- The house being opted for needs to be registered in the name of a female member of the family

Subsidy Amounts

Mentioned below are the applicable subsidy rates on the interest rates of the home loans depending on the income group you belong to -

- EWS - 6.50% per annum

- LIG - 6.50% per annum

- MIG I - 4% per annum

- MIG II - 3% per annum

To apply for this scheme, you need to visit the website, and follow the instructions which have been stated therein.

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