How to Get a Home Loan Subsidy under The Pradhan Mantri Awas Yojana

How to Get a Home Loan Subsidy under The Pradhan Mantri Awas Yojana

28 Aug 2019

The Pradhan Mantri Awas Yojana (PMAY) is a government initiative undertaken to make buying house affordable, especially for the economically weaker class in our country. Under the PMAY scheme, the government is offering home loan subsidy for PMAY eligible candidates. This scheme is especially beneficial for first-time homebuyers, or people belonging to the below poverty line. Primarily, there are 4 verticals in this scheme-

  • Slum Rehabilitation

  • Credit Linked Subsidy Scheme (CLSS)

  • Subsidiary for beneficiary-led individual house construction

  • Partnership for affordable housing with public and private sectors

The scheme is currently underway in two key components:

  1. Pradhan Mantri Awas Yojana- Urban (PMAY- U)

  2. Pradhan Mantri Awas Yojana – Gramin (PMAY-G)

The PMAY-U focuses on eliminating the increasing slum habitations in cities, along with dealing with the issues of space crunch due to increased migration. The PMAY-G primarily aims to provide houses for the rural people who still live in makeshifts or ‘kaccha’ house.

Individuals belonging to the following income group can avail the benefit of the PMAY subsidy-

  • Economically Weaker Section (EWS)- Individuals with an annual income under INR.3 lakhs

  • Lower Income Group (LIG)- Individuals with annual income between INR.3-6 lakhs

  • Middle Income Group-1 (MIG-1) – Individuals with an annual income between INR.6-12 lakhs

  • Middle Income Group -2 (MIG-2)- Individuals with annual income between INR. 12-18 lakhs

Apart from the above-mentioned categories, the PMAY subsidy on housing loan is also available for people belonging to scheduled castes, scheduled tribes, widows, and senior citizen.

More about PMAY CLSS

The CLSS (Credit Linked Subsidy Scheme) under the PMAY scheme allows eligible beneficiaries to avail subsidy up to 6.50% on the home loan interest rate. This further reduces the home loan EMI amount. Moreover, you can also enjoy a loan tenure up to 20 years under the PMAY-CLSS. The benefit of the PMAY-CLSS can be availed for home loan amount up to INR. 6 lakhs.

Following are the key provisions under the PMAY-CLSS:




MIG- 1& 2

House Size

30 sq m

60 sq m

160 sq.m and 200 sq.m respectively for MIG 1 and 2

Interest Subsidy




Loan Limit for Subsidy

INR. 2.2 lakhs

INR. 2.2 lakhs

INR 9 lakh and 12 lakh for MIG 1 and 2 respectively

Subsidy Tenure

Up to 20 years

Up to 20 years

Up to 20 years

How to Get a Home Loan Subsidy under the Pradhan Mantri Awas Yojana?

You can get a home loan subsidy under the PMAY scheme through the following steps-

  1. Check your income threshold: When you are thinking about applying for a PMAY subsidy on your home loan, it is important that you first check whether you fall under the income threshold specified under the scheme (EWS, MIG, or LIG). Depending on your income threshold, the carpet area for your residential property against which you would be availing the PMAY scheme will depend. To check how much benefit you can enjoy on your home loan, you can make use of an online housing loan EMI calculator.

  1. Fill the PMAY application online: You can fill the PMAY application online as well as offline. While offline application filling is a manual process, you can follow the below-mentioned steps for pmay online apply-

    • Visit the PMAY official website at

    • Click on the ‘Citizen Assessment’ tab and choose the category under which you wish to apply for the scheme

    • Submit your Aadhar Card details to link it with your application (This is mandatory)

    • You would be redirected to the application form where you would further need to submit your other personal details

    • Click on ‘Save’ to save your PMAY application for further use.

  1. Proceed with your loan application: Once the applicant has filled the PMAY application form (either offline or online), the next step is to visit the bank or NBFC (non-banking financial company) to avail the subsidy facility on the house loan. Along with the PMAY application, the borrower also needs to submit other details such as income proof, investment details, property details, co-applicants details, etc.

Things to keep in mind about PMAY CLSS

  • The PMAY CLSS subsidy is only applicable to home loans

  • The maximum limit on the loan amount to avail the benefit of this scheme is INR.6 lakhs

  • The applicant can avail a maximum subsidy of INR.2.67 lakhs

  • To avail the benefits of this scheme, the applicant must not have a ‘pucca’ house in his/her name or in the name of any family member.

  • If in the past the applicant or any of his family member has availed a similar housing scheme from the Central or State government, he/she would not be eligible for the PMAY-CLSS scheme

  • Having a female owner is important. If the applicant is male, he needs to get a female member of his family (wife, daughter, or mother) to be the co-owner of the property.

Also know about the PMAY SubsidyPMAY list  and PMAY eligibility calculator

PMAY Frequently Asked Questions

Q. Are there any processing fees for the PMAY application?

A. The online application is free. However, when you apply offline, there is a nominal charge of INR.25.

Q. Are Aadhar Card details mandatory to get a home loan subsidy under PMAY?

A. Yes. Submitting your Aadhar Card details is compulsory to avail the PMAY subsidy.

Q. Do all financial institutes provide a PMAY subsidy?

A. The PMAY subsidy can only be availed at banks and NBFCs recognized under the PMAY.

You can apply for a pmay subsidy on the Bajaj Finserv Home loan available at Finserv Markets. You can enquire all about pmay online apply and your eligibility for availing the subsidy under the scheme by contacting our representatives at Finserv Markets. The Bajaj Finserv Home loan comes with flexible repayment options up to 300 months, complimentary value-added services and even insurance options to protect your loved ones from the burden of paying your home loan EMIs. You can also avail home loan interest rates starting from 6.5%. Think no more. Download the Finserv MARKETS Loan App to avail exciting offers on home loan.

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PMAY Video

PMAY: Pradhan Mantri Awas Yojana Scheme

Your dream of owning a home need not wait!, Pradhan Mantri Awas Yojana (PMAY) along with Finserv MARKETS will make your dream come true And the best part! With PMAY scheme, you can get a significant subsidy on your Home Loan interest amount.