Buying a Home just got easier with PM Awas Yojana

Buying a Home with Awas Yojana

The Pradhan Mantri Awas Yojana (PMAY) aims at making affordable housing available to all by 2022. The Government of India aims to achieve this by both building affordable housing and by providing an interest subsidy on Home Loans to low income groups, economically weaker sections, and middle income groups. Not only can use this scheme to develop and add to your existing home if you belong to the LIG or EWS, but you can also purchase your home under PMAY scheme. Here is all you need to know about the same.

How Much Subsidy can I avail?:

If you belong to the Economically Weaker Section, you can avail a maximum subsidy of Rs.2.67 lakh and if your household income falls under the Middle Income Group 1, you can avail a maximum interest subsidy of Rs.2.35 lakh. The maximum interest subsidy for those belonging to the Middle Income Group 2 is Rs.2.30 lakh.

What to keep in mind while availing PMAY:

Loan Amount:   

While the loan offered by lenders is not limited, each category has a maximum limit of interest subsidy. This means any amount above the maximum amount will be subjected to the current Housing Loan interest rates in the market.

Interest Subsidy:

The maximum household income of those belonging to the EWS and LIG is Rs.6 lakh and the maximum interest subsidy for these groups is 6.50%. MIG consists of those households whose maximum income ranges between Rs.6 lakh–Rs.12 lakh and the maximum subsidy for this group is 4%. The income range for the MIG 2 is from Rs.12 lakh–Rs.18 lakh and the maximum interest subsidy is 3%.


Your Home Loan tenor can range from 1 year–30 years. However, the loan tenor needs to be completed before the age of 60 or your retirement age. If you are self-employed, the loan tenor can stretch up to 70 years of age.

Repayment Options:

You can choose to repay your Home Loan through post-dated cheques or Electronic Clearing Service.


You can choose to apply for PMAY singly or with a co-applicant. Female ownership is mandatory for EWS and LIG. MIG 1 and MIG 2 desire female ownership, but it is not mandatory.


You can avail tax deductions on payments made towards repaying your Home Loan. In this regard, Rs.1.5 lakh is the maximum limit for tax deductions made towards your principal and Rs.2 lakh is the maximum limit on tax deductions made towards the interest amount of your Home Loan.

Who can Apply for PMAY:

  • To begin, check to see which of the groups you qualify for under the Pradhan Mantri Awas Yojana eligibility norms.
  • You can apply for the PM Awas Yojana, if you are making your first home purchase and neither you nor any of your family members own a home in the country. It is also essential that you haven’t availed state government or central government assistance for housing previously.
  • MIG groups cannot avail this Credit-Linked subsidy scheme for renovation or extensions of existing homes
  • Special preference is given to women, scheduled castes, transgender and scheduled tribes.

Now that you know how to make your home purchase easy and your loan borrowing experience inexpensive, look at where you can avail this scheme without having to compromise on benefits. Bajaj Finserv, for example, offers you Home Loans under the PMAY scheme for affordable housing at subsidised Home Loan interest rates. Additionally, you can benefit from customised insurance schemes, a property dossier, a 3-EMI holiday and the Flexi Hybrid loan that gives you principal holiday up to 4 years. So, take an affordable Home Loan with added benefits to make the most of your home purchase.


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