PMAY Home Loan: How It can Help You Buy a Home

Many people in this country live in rented spaces. Some have to share their accommodation with several other family members. The main reason is that a large section of the Indian population is unable to afford their own home.

To address this problem, the Government of India has started a new home financing scheme. The Pradhan Mantri Awas Yojana (PMAY) offers home loans at subsidised rates. This enables people from all walks of life to have their own homes.

What is the PMAY Home Loan?

Let us look at the various features of the PMAY:

        Subsidised Home Loan Interest Rate: The PMAY aims to give subsidised home loan interest rates to consumers. The government has appointed two nodal agencies, HUDCO and NHB, to coordinate this scheme. These agencies, in turn, have tied up with various banks and non-banking financial companies (NBFCs. The financial organisations disburse the home loans directly to applicants at the subsidised interest rates.
        Affordable Housing Solutions: You can get a housing loan at lower rates through the PMAY. Hence, the financial burden of borrowers decreases. It has become possible for more people to own homes by subscribing to this scheme.

Details of the PMAY Scheme

The following table outlines some key income and loan details of this scheme:

Maximum loan amount

Maximum subsidised interest rate
Maximum loan tenor
Maximum subsidised interest amount

Middle income group (Maximum salary: Rs.18 lakhs per year)
Rs.12 lakhs
20 years
Rs.2.3 lakhs
Lower income group (Maximum salary: Rs.6 lakhs per year)
Rs.6 lakhs
20 years
Rs.2.6 lakhs
Weak economic section (Maximum salary: Rs.3 lakhs per year)
Rs.6 lakhs
20 years
Rs.2.6 lakhs

You will first need to calculate your annual salary to determine if you are entitled to a PMAY home loan. Then, you can apply to the category you fall under. This way, you will also get the subsidy you are eligible for.

How to Apply for a PMAY Home Loan?

As mentioned above, this scheme is available via several banks and NBFCs. To avail the benefits of the PMAY, all you have to do is:

        Identify various lenders associated with this scheme. 
        Select a lender and visit their official website.
        Fill in the housing loan application form.
        Submit required documents along with a letter stating your desire to avail this scheme. 
        Submit the form and wait for an approval.

Important Guidelines for Applying to the PMAY

While the PMAY is a very useful financial scheme, here are a few vital points that you must keep in mind:

        You cannot apply for a home loan under the PMAY if you already have a pucca house in your name.
        You cannot apply for a home loan under the PMAY more than once. This includes your immediate family members. In other words, one family is eligible for just one subsidy under this scheme. 
        If your income is more than Rs.18 lakhs per year, you are not eligible for the subsidised interest rates of this scheme.

Remember these guidelines when applying for a PMAY home loan. If your application is correct, your loan will be processed and disbursed at a faster pace.

Summing Up

PMAY housing loans are helpful for people belonging to lower and middle income groups. It is crucial to choose a good lender who will help you get the home loan best suited to your needs. With this scheme, your dream of moving into your own home can now become a reality.


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