Pradhan Mantri Awas Yojana, PMAY, is a housing scheme initiated by the Government of India in the year 2015.
The aim of the scheme is to promote easy and affordable housing by completing the construction of 2 crore houses by March 31, 2022.
PMAY scheme is specifically targeted towards the lower to lower-middle income groups, and is expected to reduce the cost of owning a home in rural and urban India. The mission of the scheme can be explained with the help of its four different components –
Redevelopment and rehabilitation of slums with the help of private-sector developers
A partnership of private and public sector for making housing more affordable
Credit-linked subsidy for the lower-income groups
Subsidies for construction of beneficiary-led housing
Under PMAY, there are four different categories of beneficiaries –
Economically Weaker Section (EWS)
Low-Income Groups (LIGs)
Middle Income Groups I (MIGs I)
Middle Income Groups II (MIGs II)
Each family applying for the scheme will be categorized into one of these four beneficiary sections depending on their annual household income. The assistance they get will also be determined according to their categorization. Take a look at the table below for a better understanding of the eligibility criteria.
| Details |
EWS |
LIG |
MIG I |
MIG II |
| Total household income |
Up to Rs 3 Lakhs |
Rs 3 -6 Lakhs |
Rs 6 -12 Lakhs |
Rs 12 -18 Lakhs |
| Max loan tenure |
20 years |
20 years |
20 years |
20 years |
| Max loan amount allowed for subsidy |
Rs 6 Lakhs |
Rs 6 Lakhs |
Rs 9 Lakhs |
Rs 12 Lakhs |
| Max dwelling unit carpet area |
30 sq. m. |
60 sq. m. |
160 sq. m. |
200 sq. m. |
| Discount rate for net present value (NPV) calculation of interest subsidy (%) |
9.00% |
9.00% |
9.00% |
9.00% |
| Subsidy |
6.50% |
6.50% |
4.00% |
3.00% |
| Max. interest subsidy amount |
Rs 2,67,280 |
Rs 2,67,280 |
Rs 2,35,068 |
Rs 2,30,156 |
It is important to note what constitutes as a ‘household’ under PMAY. According to the scheme, any individual, who is an adult and him/her or an immediate family member doesn’t own a pucca house is eligible to receive assistance.
How to Use PMAY Eligibility Calculator
As you can see from the table above, each category of beneficiaries has a specified percentage of subsidy and a maximum amount to which the subsidy will be allowed. To further explain the calculation, here is an example.
If a family belongs to MIG-II category, which means their total household income falls between INR 12-18 lakhs, they would be eligible for a 3% subsidy rate. So, if they purchase a house of INR 75 lakhs, and INR 20 lakhs is paid upfront in down payment, they would have to pay approximately the remaining 50 lakhs through a home loan.
However, via PMAY, they would have to pay regular interest rates for only 38 lakhs, and the remaining 12 lakhs will be paid back at a subsidized rate. Out of the 12 lakhs, the family would also get a deduction of INR 2.3 lakhs on subsidy and would need to pay EMI only on 9.7 lakhs.
Disclaimer: The information available on this site has been gathered from publicly available sources and is accurate to the best of our knowledge. However, please be aware that the rates and other offers may vary based on your profile and may be subject to change without notice. Therefore, we advise you to verify the information before applying for any loan through this website. Magicbricks accepts no liability for any loss arising from the use of the information on this website. Refer T&C for the detail.
(T&C link: https://property.magicbricks.com/terms/terms.html)
**This service is available in select cities only.
*These calculators are only for illustrative purposes. These figures may or may not be applicable to your particular situation. Magicbricks will not be responsible for any loss or liability arising from the use of these calculators.