February 25, 2024


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Determine Yourself If You Are Eligible for a Home Loan Subsidy Under PM Awas Yojana


The government initiative launched under the hood of Pradhan Mantri Awas Yojana targets to aid all Indians living in temporary houses. The aid primarily comes as subsidies in housing loan interests; the subsidy rate depends upon the income of the applicant. Under the Pradhan Mantri Yojana, the central and state government bear the costs of subsidy at a ratio of 60:40.

PMAY has effectively led to the completion of construction of 15% of the 54.95 Lakh houses approved in the last 3 years. Consequently, numerous NBFCs and financial institutions have come up with home loan schemes which come under the purview of this initiative.


The scheme has been broken down into 4 slabs according to family income of the applicants and other requirements. With numerous key benefits of the Pradhan Mantri Awas Yojana dedicated to these specific slabs, it is vital to understand the PMAY eligibility criteria. Important to note, no applicant under PMAY should own a brick and mortar house, irrespective of their income. Additionally, no family member should own a house either. Further, the loan tenures can go up to 20 years which enables customers comfortable EMI options.

Underneath, all the groups and categories of PMAY eligibility are discussed in details –

Economically Weaker Section (EWS)

Launching the housing for all schemes, this is the group of applicants who require the bulk of subsidies to help them make their own house. The following form the essential core of loans under the initiative.

  • Annual family income should not exceed Rs. 3 Lakh.
  • The carpet area of the proposed house must be within 30 square metres.
  • Loan amount eligible can go up to Rs. 6 Lakh.
  • 6.5% subsidy is offered on the interest rate.

Low Income Group (LIG)

The second category under this scheme, this group has PMAY eligibility criteria which are quite close to the previous one.

  • An annual family income ranging between Rs. 3 Lakh and Rs. 6 Lakh.
  • Overall carpet of this house cannot go beyond 60 square metres.
  • Like the above group, the loan amount can go up to Rs. 6 Lakh.
  • Rate of subsidy offered on loans under this group is also 6.5%.

Middle Income Group category I (MIG I)

Of two categories defining the Middle Income Group, this entails the less economically fluent one. Its distinct eligibility criteria are underneath.

  • Annual family income between Rs. 6 Lakh and Rs. 12 Lakh.
  • Total carpet area up to 160 square metres.
  • Under the middle group of income, the home loan amount can go much higher than the previous groups up to Rs. 9 Lakh.
  • The subsidy is offered at a rate of 4 %.

Middle Income Group category II (MIG II)

The final group under Pradhan Mantri Awas Yojana loan, these have eligibility criteria similar to MIG I. Its distinct features are underneath.

  • Annual family income between Rs. 12 Lakh and Rs. `8 Lakh.
  • Total carpet area can go up to 200 square meters.
  • Loan amount can reach up to Rs. 12 Lakh.
  • Rate of subsidy on offer is 3%.

While the government of India has initiated subsidies on home loan interest rate, NBFCs and financial institutions have not only introduced numerous schemes but also ensured they are easy to apply and avail.

Also Read: Guide to Track Pradhan Mantri Awas Yojana Status

With speedy home loan options and their easy approval by financial institutions, the Pradhan Mantri Yojana eases your way to becoming a homeowner even further. The beneficiaries and their thorough understanding is a crucial factor deciding the final expenses on a loan rate. Resultantly, desiring individuals should go through the details expressly before choosing their financing option.