Pradhan Mantri Awas Yojana 2020 - A complete guide
Pradhan Mantri Awas Yojana

Pradhan Mantri Awas Yojana 2020 – A complete guide

Are you planning to build your first house? This is now possible under the government initiative of Pradhan Mantri Awas Yojana. Without wasting time let’s go through the details.

What is Pradhan Mantri Awas Yojana?

The Indian government has started a subsidized home loan scheme “Pradhan Mantri Awas Yojana” which is an initiative under “Affordable Housing for all by 2022” in the country. You also get a credit-linked subsidy on the loan.

You can buy a new home or a flat, construct a house or you can enhance your home by adding toilet, kitchen or adding another room. In 2019, more than 15 Lakhs house has been constructed and more than 1 crore loans have been sectioned under this scheme.

Just like any other government scheme the structure of this Yojana is also not simple. Let’s understand this scheme from every aspect.

Read: How to Apply for Bank Loan under Mudra Yojana

Objectives of Pradhan Mantri Awas Yojana

Pradhan Mantri Awas Yojana

Who is eligible for Pradhan Manti Awas Yojana?

There are few criteria which one should met to be eligible for a concessional home loan under PMAY.

  1. A first time home buyer. The beneficiary should not own a pucca house either in his/her own name or in the name of any of his/her family members in any part of India. Family members include husband, wife and unmarried children.
  2. Pradhan Mantri Awas Yojana is for lower-income groups (LIG) and Economic Weaker Sections (EWS) people. To be eligible for PMAY Income,
    • In case of EWS, your income should not exceed Rs.3 lakhs per annum
    • In case of LIG, your income should not exceed Rs.6 lakhs per annum.
  3. The carpet area of houses being constructed under Pradhan Mantri Awas Yojana should be up to 30 square meters of EWS and 60 square meters LIG category.

You will get all the details of PMAY eligibility criteria in the table below.

GroupsAnnual IncomeMaximum loan amount for subsidyInterest rate for subsidyMaximum Subsidy AmountAllowed Area
Economically Weaker   Section (EWS)Upto Rs. 3 LakhsUpto Rs. 6 Lakhs6.50%Rs. 2.60 Lakhs30 sq. mt. (322.917 sq. ft.)
Low Income Group (LIG)Rs. 3-6 LakhsUpto Rs. 6 Lakhs6.50%Rs. 2.60 Lakhs60 sq. mt. (645.834 sq. ft.)
Middle Income   Group-1 (MIG 1)Rs. 6-12 LakhsUpto Rs. 9 Lakhs4%Rs. 2.35 Lakhs160 sq. mt. (1722 sq. ft.)
Middle Income   Group-2 (MIG 2)Rs. 12-18 LakhsUpto Rs. 12 Lakhs3%Rs. 2.30 Lakhs200 sq. mt. (2152.78 sq. ft.)

Read: All about Benami Property / Transactions

Credit Linked Subsidy or Rebates on Home Loan Interest (UPDATED)

You can avail benefit of rebate (subsidy) on home loan interest, under the following criteria.

  1. Loan Amount up to 6 lakhs: If the Home Loan amount is up to Rs.6 lakhs then interest on home loan will be charged at a concessional rate of 6.5 percent per annum. Here the rate of interest is fixed at 6.5 percent per annum.
  2. Loan Amount up to 9 lakhs: If home loan amount is up to Rs.9 lakhs then the beneficiary will get home loan interest subvention of 4 percent per annum. This means if the prevailing interest rate is 9% then the home loan will be provided at 5% interest rate.
  3. Loan Amount up to 12 lakhs: Similarly, if the home loan amount is up to Rs.12 lakhs then the beneficiary will get home loan interest subvention of 4 percent per annum. This means if the prevailing interest rate is 9% then the home loan will be provided at 6% interest rate.
  4. Rural Areas: Government has also sanctioned interest subvention of 3 percent for the neo middle and middle class in rural areas for loans of up to Rs.2 lakh taken in 2017, for new housing or extension of housing in rural areas.

A few more important conditions to consider

  1. The tenure of the home loan shall be maximum of 15 years and no default is to be made from the beneficiary side to avail the subsidy benefit.
  2. In case the home loan amount exceeds R.12 lakhs then the reduced interest rate shall be applicable only up to Rs.12 lakhs and on remaining loan amount prevailing interest rate shall be applied. For example, If a home loan of Rs.15 lakhs is taken at 9% interest rate for tenure of 15 years then the interest subsidy of 3% would be applied on Rs.12 lakhs and on remaining Rs.3 lakhs interest rate of 9% is applicable. The subsidy would be credited upfront to the beneficiary loan account resulting in reduced EMI.

Subsidy Amount Calculation under Pradhan Mantri Awas Yojana

Pradhan Mantri Awas Yojana Calculator

How to Apply for Pradhan Mantri Awas Yojana?

Step 1: Log on to the Pradhan Mantri Awas Yojana official website at  https://pmaymis.gov.in/

Pradhan Mantri Awas Yojana


Step 2: Under the citizen assessment drop-down, select the benefits under three components as shown below

Pradhan Mantri Awas Yojana

Step 3: Now enter your Aadhaar details and or virtual ID, tick the checkbox and click on check.

Pradhan Mantri Awas Yojana

Step 4: After filling in the Aadhar details, you will be redirected to the application form stage where you will have to fill in the details accurately.

Pradhan Mantri Awas Yojana

Step 5: After filling the information, tick on the checkbox, then enter the Captcha code and click on ‘Save’.

Pradhan Mantri Awas Yojana

The application is now complete and you can take the print out now.

Once you are allotted a house under PMAY you can choose to avail subsidized home loan through any Scheduled Commercial Banks (like SBI, BOB, PNB, ICICI Bank, etc.), Regional Rural Banks (RRBs), Housing Finance Companies, Urban Cooperative Banks, and State Cooperative Banks.

How did you like the guide, tell me in the comments.

41 thoughts on “Pradhan Mantri Awas Yojana 2020 – A complete guide”

  1. Sir ,
    Humne dealer ke thru pradhan mantri awas yojna ka 2bhk flat 7.5 ka kya aap bata sakte hai ki kitne ka loan paas ho sakt hai

  2. I,am maintaining a house loan at corporation bank.
    Is there any scope to convert my loan to PMAYJ ?

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  4. I am a private tutor ,but have an IT of 200000/annum for last three years .our family in come is 30000pm. I have a joint savings account with my son at SBI rahara station rd branch kol118. I have parchesed a plot of 1.5 Katha bastu land at Hooghly BANDEL gram panchyet area but zilla porisadh approved. I presided in rent at sodepur area .I take an education loan from SBI amount of 204000approx on December 2015 and repay Rs4700pm by ecs from January 2016. My son is a reg diploma pharmacist in wb.and continuing B pharm final year . As we have no personal home we want to construct a house in my plot at BANDEL by taking home loan jointly with my son for 20 years. Can get home loan ? Plz help.

  5. Dear Sir,
    I have already home loan on flat in 2016, that loan can be converted in PMAY subsidy or I can apply for new home loan that will be come in PMAVY subsidy.

  6. Dear sir ,
    Please tell me how to get this benefit I am working pvt ltd my annual income is 1800000 I want buy home urban area

  7. Sangeeta Kishore Khambekar

    Namaste.
    Please kindly let me know how to get this benefit as I am staying on rent. Thankyou.

  8. Rajendra Kumar Padhy

    Dear Sir,
    I have made a house in semi urban area on 2015 by help of UBI housing loan. I am working in a one of Private Educational Institution and came under EWS. My annual income is presently Rs.1,92,000/- only. And I have been faced too much financial problem to pay the EMI to bank. My family members are four me my wife and two children below 18 years. So, Can I get any benefit from PMAY deemed by the PM Shri Narendra Modi Sir.

  9. I taken a home loan of Rs.12 lakhs on 31.01.2017 from canara bank for 20 years.
    My yearly income is Rs.2,75,000 net.
    but still bank not providing me 4% rebate on my loan.

    please give the suggestion how can I take the benefits from bank.

    Thanks
    Chandan Kumar

  10. My permanent residential address is in rural area but I am residing at Municipal area on rent basis since last 5 yrs. for duty purpose. I would like to avail the benefits of CLSS under PMAY(Urban) as I am eligible as per eligibility criteria fixed by the Govt.. So, I may kindly be clarified the following points:
    1) Can I purchase a Flat or House in any area (Urban or Rural) area? If yes, will I have to produced any residential certificate?
    2) Can I purchase resale Flat or House in this scheme?
    3) Can I get interest subsidy on loan amount upto Rs. 12 lack?

    An reply in the matter is solicited.
    With regards,
    K.K. Das
    Howrah(WB)

  11. P Sateesh babu

    Sir i would like to buy a new home i want to a loan of 500000 how to apply is it applicable for constucted homes..

  12. Pls tell me if the scheme is applicable, if I have taken loan of 10 lakhs from PNB Housing. Finance in December 2016. I was unaware of the scheme. Kindly revert.

  13. Pragati P Gavade

    Sir, muze (Rural Areas: Government has also sanctioned interest subvention of 3 percent for the neo middle and middle class in rural areas for loans of up to Rs.2 lakh taken in 2017, for new housing or extension of housing in rural areas.) ye rule ke against loan lena hai. muze ye loan mil sakta hai kya ? me konsi bank se ye loan le sakti hai. & konsi document ki jarurat hai.

  14. KALPANA DADASO MORE

    Sir maine jan 2016 me Rs. 11,22,000 .ye Amount ka loan leke home liya hai .kya mujhe Ye YOJNA ka benefit miega kya ?

  15. Sir,
    I have taken loan of Rs.10 Lacs and applied for subsidy. My loan payment disbursement is made on 05.01.2017.

    Please clarify how can i get the benefit of new annowancement i.e. the calculation of interest subsidy of 4% would be applied on Rs.10 lakhs

  16. Subsidiary declares but Bank say we have not get any official notice ,so please confirm the effective date….

  17. kapil kumar gupta

    sir mera loan 28/12/2016 me sanctioned hua or 02/01/2017 me disburse
    kya mujhe 3% rebate milegi

  18. kapil kumar gupta

    sir, my home loan sanctioned on dt. 28/12/2016, but loan disburse on dt. 02/01/2017
    kya mujhe 3% rebate ka benefit miega

  19. Hanumant D shinde

    Sir,
    I have taken loan of Rs.12 Lacs and applied for subsidy. My loan payment disbursement is made on 04.01.2017.

    Please clarify how can i get the benefit of new annowancement i.e. the calculation of interest subsidy of 3% would be applied on Rs.12 lakhs.

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