Pradhan Mantri Awas Yojana Guidelines for income Rs. 3 – 6 Lakhs

Updated on December 18, 20186 mins read

Updated: January 2018 Avail interest subsidy up to 2.67 Lakhs under PMAY – CLSS for EWS and LIG income group. In June 2015, Prime Minister Narendra Modi announced that India needs at least 2 crore houses in the range of 5-15 Lakhs. This project was started under the name Pradhan Mantri Awas Yojana(Urban). The Ministry of Urban Housing and Urban Poverty Alleviation has been designated to over look this ambitious project. The project is to be implemented in through four different verticals:

  1. In – Situ rehabilitation of existing slum dwellers
  2. Credit linked subsidy scheme 
  3. Affordable housing in partnership
  4. Subsidiary for beneficiary led individual house construction/enhancement

The Pradhan Mantri Awas Yojana official website has all the details on the on the initiative. You will also find updates, amendments and new announcements related to the schemes on this website. Out of the four verticals, Credit linked Subsidy scheme that offers discount on interest rate for home loans. The scheme is divided in to two categories:

  1. Credit linked subsidy scheme for EWS/LIG
  2. Credit linked subsidy scheme for MIG

If your income is between Rs.6- 12 Lakhs and Rs.12-18 Lakhs a year, you should read  our detailed post on the Pradhan Mantri Awas Yojana Credit Linked Subsidy Scheme (MIG I & MIG II) In this article, let’s take a look at the Credit Linked Subsidy Scheme for EWS/LIG. This is popularly known as Pradhan Mantri Awas Yojana for Economically weaker section and Pradhan Mantri Awas Yojana for Low income group. Here are the features of the scheme at a glance:

 EWS LIG
Annual household income Rs.3 Lakhs Rs. 3-6 Lakhs
Maximum loan value for subsidy Rs. 6 Lakhs Rs.6 Lakhs
Processing feesNo processing fees for up to 6 Lakhs loanNo processing fees for up to 6 Lakhs loan
Maximum loan tenure 20 years 20 Years
Subsidy on interest 6.5% 6.5%
Maximum interest subsidy 2.67 Lakhs 2.67 Lakhs
Maximum carpet area eligible30  Sq Mtr (~323 Sq Ft)60 Sq Mtrs (~646 Sq Ft)
Where can property be locatedAny area deemed as town under census 2011Any area designated as town under census 2011
Scheme open for applications tillNo last date as of nowNo last date as of now

Pradhan Mantri Awas Yojana eligibility for EWS/LIG groups There are two important factors that make you eligible:

  1. You should not own a pucca house anywhere
  2. combined income of your family unit should be less than Rs.6 Lakhs a year

Other than that, here are some important points to note:

  • The house you buy/build using a loan with subsidy, should be in the name of female head of the family
    • She can jointly own the house with the male head of the family
    • Male head of the family can own the house if there is no female head
  • The Government has directed banks to give preference to:
    • Women borrowers
    • Widows
    • People belonging to SC/ST/OBC
    • Minority groups
    • Disabled people
    • Transgenders

How to apply for Pradhan Mantri Awas Yojana EWS/LIG When you want to take a loan and avail the benefit of this scheme, the first step is to find a bank that has signed an MOU with the two nodal institutions – NHB or HUDCO Then you need to apply for loan as usual, giving details of your income, property etc. Additionally, you would need to give a letter declaring that you do not own a pucca house anywhere. Pradhan Mantri Awas Yojana application form and procedure  You can apply for interest rate subsidy in two ways:

  1. Pradhan Mantri Awas Yojana online form – direct application for subsidy
  2. Apply through bank or housing finance company

Pradhan Mantri Awas yojana Application form online  You can apply for subsidy online free of cost through http://pmaymis.gov.in. You can also apply online with the help of officials at the Common Service Centre (CSC). They would charge you a nominal fee of Rs.25 for this service. You can locate the nearest CSC on this link Here are the steps to apply for Pradhan Mantri Scheme online Step 1 Start by selecting ‘benefit under other 3 components’ apply for loan under Pradhan Mantri Awas Yojana, PMAY   Step 2 Enter adhar details correctly apply for loan under Pradhan Mantri Awas Yojana, PMAY Step 3  Enter all other details correctly apply for loan under Pradhan Mantri Awas Yojana, PMAY Step 4 Save your application. Your application process is now complete. You can track the status of the application on the same website. Once your application is processed, you can submit a print out to the local Municipality or Nagar Palika office. Pradhan Mantri Awas Yojana Application through bank Applying for the subsidy through bank is a simple procedure too. You can apply for loan and the benefit at the same time. If you are eligible for the scheme you can select a bank from this list of banks that have signed MOU for offering this scheme. Inform the bank that you wish to avail benefit under the scheme and follow up regularly. The whole procedure may take 2-3 months. apply for loan under Pradhan Mantri Awas Yojana, PMAY Home Loan Application and Documents Under Pradhan Mantri Awas Yojana Since the procedure to apply is the same, the documentation is also the same as a regular home loan application, with the exception of a declaration letter.

  1. Proof of identity – PAN card, Aadhar card, voter id card, Driver’s licence, MNERGA number etc
  2. Proof of address – Voter id, electricity bill, telephone bill, driver’s licence etc
  3. Proof of category – SC/ST/OBC/Minority certificate
  4. Proof of nationality – Passport, Aadhar Card, birth certificate
  5. Proof of income – Form 16, Income Tax returns and bank statements, if any. In case you don’t have any of these, you would need to provide a self declaration of income.

Pradhan Mantri Awas Yojana Subsidy Calculation You can get a up to Rs. 2.67 Lakhs as subsidy under the scheme. This is calculated using a method called Net Present Value. An official Pradhan Mantri Awas Yojana subsidy calculator is available on the websites on Pradhan Mantri Awas Yojana and National Housing board. You could enter your loan amount to know how much subsidy you are eligible for. The maximum loan amount you can enter is Rs.6 Lakhs. How much loan can I take  You can build a house of any size and take a loan of any value. But when you apply for subsidy, the benefit will only be on the first Rs.6 Lakhs. Can I switch over home loan from another bank Switch over and balance transfers are not eligible for subsidy benefit under the scheme. You will also not be able to switch your loan from one bank to another after you take the subsidy benefit. However, switching your loan from one bank to another could save you lot of money too. You can learn more about switching over home loan here.  How is interest subsidy paid under Pradhan Mantri Awas Yojana The subsidy will be directly credited into your loan account. Here is how it works: apply for loan under Pradhan Mantri Awas Yojana, PMAY How much will I save on subsidy from Pradhan Mantri Awas Yojana If you take a loan without the benefit of the scheme you pay a substantial amount as interest

ParticularsAmount
Loan value Rs.20 Lakhs
Interest rate 8.40%
Tenure 20 years
Equated monthly
installments (EMI)
Rs.17,230.09
Total interest paid
over 20 years
Rs.21.35 Lakhs

If you do take the benefit of the scheme, Rs.2.67 Lakhs will be credited into your loan account at the start. This brings down the EMI immediately

ParticularsAmount
Loan value Rs.20 Lakhs
Loan value after subsidy Rs. 17.33 Lakhs
Interest rate 8.6540%
Tenure 20 years
Equated monthly installments (EMI) Rs 14,929.87
Total interest paid over 20 years Rs.18.50 Lakhs

Over 20 years, you would save nearly Rs.3 Lakhs.

Building a home is a large expense. You should use every possible option to save your heard earned money. Credit Linked Subsidy Scheme is one such option that you must utilise.

All the procedures have been kept fairly simple. Detailed information on the scheme, calculators, online application forms are provided for easy access to the scheme. For any assistance, including filling up the form you can visit the nearest Common Service Center.

Here are some final points to keep in mind when you apply for Pradhan Mantri Awas Yojana EWS/LIG

  • Aadhar number is mandatory to apply for subsidy
  • You can use the loan amount to buy/build a new home or repurchase an existing house
  • You can use the loan amount to extend your house with toilets, kitchen etc
  • The house must be brick and mortar, i.e ‘pucca’ and must meet all safety and hygiene standards set by authorities.

SwitchMe is an end-to-end service that helps you with everything related to your Home Loans – identifying the right lenders to figuring out the best tenure, interest rates to even balance transfers. Signup for all your PMAY related queries. One of our customer Mr. Sumit Satpathy says “SwitchMe makes the entire process very simple and follow up diligently to make sure the customer does not loose even a day”.


Suma Ganesh

Suma Ganesh

Suma is an MBA in Finance and Marketing from ICFAI, Bangalore. She worked as an investment advisor to retail and high networth clients for nearly 7 years at Allegro Capital Advisors Pvt Ltd. This gave her a first hand understanding of the needs of an individual customer. With this edge, she moved on to Adi FinShiksha Pvt Ltd, where she trained financial advisors to manage their clients' investments and financial needs. With deep understanding of customers and their advisors, Suma then moved on to writing content in the space of personal finance. she is currently working as part of the content creation team at SwitchME, addressing the needs of home buyers and home loan borrowers.
29 COMMENTS

Have a question? Post it here and we will get back to you within 1 working day.

  1. SAJAN RAM
    Sep 24 2018 at 10:30 pm
    Reply

    Sir
    i take home loan from DHFL the loan will disburse as per construction stages now 40% loan disbursed by DHFL now 267380 subsidy credit in DHFL by NHB but DHFL credit only 50000 in my loan account now i want to know that what is the process to credit CLSS amount if we pay only Pre EMI

    • Suma Ganesh
      Suma Ganesh
      Sep 28 2018 at 1:44 pm

      Hi Sajan,
      Thank you for writing in to us.
      DHFL has to pass on the subsidy to you all at once.
      This is so, even if the loan is disbursed in tranches as per construction.
      You can not transfer the loan to any other bank once you get the subsidy.

  2. Tillesh K
    Sep 24 2018 at 12:55 pm
    Reply

    Dear , I am planing to construct a home 1000 sq ft,in my own place 10 Cents,we are looking 20 lakh for loan and banks are ready to give .Shall i linked PMAY Subsidy scheme with my 20L loan.Also i am working in UAE.PLS SUGGEST

    • Suma Ganesh
      Suma Ganesh
      Sep 28 2018 at 1:46 pm

      Hi Tillesh,

      Thank you for writing in to us.
      Please see the requirements mentioned above. If your household and property fits into the above criteria, you should definitely apply for benefit under PMAY.

  3. Kashiram Kori
    Sep 20 2018 at 12:05 pm
    Reply

    After receipt of subsidy under PMAY, in how much time I can close the loan ?

    • Suma Ganesh
      Suma Ganesh
      Oct 03 2018 at 2:26 pm

      Hi Kashiram,
      Yes, you can close the home loan after receipt of PMAY subsidy.

  4. Vikash Sinha
    Sep 19 2018 at 10:37 pm
    Reply

    Credit linked subsidy would be available for housing loans availed for new construction and addition of rooms, kitchen, toilet etc. to existing dwellings as incremental housing. The carpet area of houses being constructed under this component of the mission should be upto 30 square metres and 60 square metres for EWS and LIG, respectively in order to avail of this credit linked subsidy. The beneficiary, at his/her discretion, can build a house of larger area but interest subvention would be limited to first Rs. 6 lakh only

    Got this information from official site .

    Can you please explain this : The beneficiary, at his/her discretion, can build a house of larger area but interest subvention would be limited to first Rs. 6 lakh only

    • Suma Ganesh
      Suma Ganesh
      Oct 03 2018 at 2:27 pm

      Hi Vikash,
      Thank you for writing in to us.
      Yes, that is correct

  5. Vikash Sinha
    Sep 19 2018 at 5:53 pm
    Reply

    my ctc is 6 Lakh whereas including my shift and night allowance it comes upto 6.5 Lakh(4 thousand per month ) also for Income tax 6.5 is considered as this is what I am earning .

    Which category I will fall under ?

  6. mahendra singh
    May 23 2018 at 3:08 am
    Reply

    dear Sir
    can we pay all amount before 20 years, if yes we will get the subsidy

    • Suma Ganesh
      Suma Ganesh
      May 23 2018 at 10:46 am

      Hi Mahendra,
      Thank you for writing in to us.
      Yes, you can pay all the amount and close the loan.

  7. RAJENDRASINH
    Apr 19 2018 at 5:56 pm
    Reply

    WHICH CITY SUBSIDY CONSIDER IN GUJARAT STATE CITY AND VILLAGE NAME I NEED

    • Suma Ganesh
      Suma Ganesh
      May 10 2018 at 9:52 am

      Hi Rajendra,
      Could you please elaborate your question?
      You could also sign up with us to receive a call back

    • Suma Ganesh
      Suma Ganesh
      May 11 2018 at 12:27 pm

      Hi Rajendra,

      In Gujarat, 198 towns have been identified for CLSS scheme.
      You will find the entire list if you click on the specific state.
      Please follow the link : https://www.hudco.org/TownList.aspx

  8. P Joshi
    Apr 09 2018 at 5:55 pm
    Reply

    I had bought a flat in 2008 & sold in 2010 with joint name with my father. Now if i apply for Pradhan Mantri Awas Yojana with me & my wife name for a new flat can i get benefit of this scheme.

    • Suma Ganesh
      Suma Ganesh
      May 23 2018 at 11:28 am

      Hi
      Thank you for writing in to us.
      If you have declared the sale in your income tax returns and your bank has details of the transaction, technically they may be able to trace it.
      However, there is a chance there is no investigation in this regard. So, yes, you can avail a loan under PMAY.
      However,The PMAY subsidy is a sincere effort to help citizens build their first homes. It would be best if they most deserving get the benefit of it.

  9. Ajay Dubey
    Feb 22 2018 at 12:10 am
    Reply

    Hello i have a plot size 750 sq ft . I am salried employee. my mothly income 37000. I didnt have name of female in plot registry. I am eligible for sub sidy

    • Suma Ganesh
      Suma Ganesh
      May 23 2018 at 1:37 pm

      Hi Ajay,
      Thank you for writing in to us.
      At your income, you can get subsidy if you construct a house of the house with carpet area 60 Sq Mtrs (~646 Sq Ft)
      This does not refer to the plot size, but the carpet area of the house constructed

  10. MANJEET KUMAR
    Feb 20 2018 at 9:36 pm
    Reply

    R/sr
    I have 5 lakh annual income I am govt employee. Do not have pucca house. In my family mother. Wife. Two daughters 7 and 5 years. I have applied for loan in sbi. I have plot of 220sq mtr. How much area can I cover for building house under LIG .kindly clear that how much maximum area is required to construct house under LIG

    • Suma Ganesh
      Suma Ganesh
      May 23 2018 at 1:51 pm

      Hi Manjeet,
      Thank you for writing in to us
      At your income you can build a house with carpet area 60 Sq Mtrs (~646 Sq Ft).
      Please look at the other requirements carefully before you plan the construction and loan.

  11. Lalaji prasad
    Nov 21 2017 at 8:05 pm
    Reply

    Hi i’m a middle class guy with joint family. We are 2 brothers. We have a 2 asbestos rooms in 70 square feet, and we want to enhance with pucca house.
    We both are private employees.
    We earn rupees 25000/- per month.
    Do we get eligibility to lpanaunder under PMAY?

    • Suma Ganesh
      Suma Ganesh
      Nov 28 2017 at 10:00 am

      Hi Lalji,
      Looking at your income and area of property you can apply for PMAY subsidy.
      However, please read more to understand the other conditions like who is eligible, ownership of property etc.

  12. S dwivedi
    Nov 17 2017 at 10:12 am
    Reply

    have applied for a bank loan under PMAY- CLSS. My eligibility is in LIG as my income is under 6 lac per annum. My flat carpet area is 783 square feet which is over the limit of 645 square ft in LIG. I meet all the other eligibility criteria of LIG under PMAY (including income eligibility).
    Property is in the name of my mother. My family includes myself, wife, daughter aged 5 yrs old and My mother.

    Will I be able to get the benefit in PMAY under CLSS.

    • Suma Ganesh
      Suma Ganesh
      Nov 28 2017 at 10:02 am

      Hi S Dwivedi,
      Thank you for writing in to us.
      You must meet all conditions to avail subsidy under PMAY

  13. Vijay agarwal
    Nov 03 2017 at 5:20 pm
    Reply

    Dear sir…we are four married brothers and living together in mother’s house.in 2015 i took bank loan with my younger brother from icici bank for mother’house to build one story on this house.main applicant is me and co applicant my brother and house property belong to my mother.now i took again bank loan for awasiya flat from icici bank in may2017 and this is our first property belong to me and my wife.could we take this subsidy or not….? My income less than 4 lakhs annual and my wife is main head of this property

    • Suma Ganesh
      Suma Ganesh
      Nov 09 2017 at 1:47 pm

      Hi Vijay,
      Yes you can avail the subsidy.
      Please apply at your bank.

  14. Prakash
    Oct 17 2017 at 2:31 pm
    Reply

    Can i repay the loan i have got the subsidy 3 months back

    • Suma Ganesh
      Suma Ganesh
      Oct 25 2017 at 11:28 am

      Hi Prakash,
      Yes, you can repay the loan.However, before you do, please visit your bank for further information.