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How to Get a Home Loan under Pradhan Mantri Awas Yojana

How to Get a Home Loan under Pradhan Mantri Awas Yojana


With rapid urbanization and skyrocketing property prices, ‘affordable housing’ slowly faded away like a distant dream for most homebuyers in India. That was until the Government of India introduced the Pradhan Mantri Awas Yojana (PMAY) scheme in 2015, which came as a ray of hope for homebuyers, thanks to a slew of subsidies on home loan interest rates.

Mantri Awas Yojana

If you’re a first-time homebuyer looking to tap into the PMAY home loan benefits, here’s how you can do it.

Know your eligibility

Here are the detailed eligibility criteria to know whether you can reap PMAY’s benefits.

  • Neither you nor any of your family members must have a pucca house to their name.
  • You shouldn’t be registered under any other housing scheme
  • Your income should fall under any one of the four income categories:
    • EWS (Economically weaker section): Total household income should be below Rs. 3 Lakhs
    • LIG (Lower-income group): Total household income should be between Rs. 3 lakhs and Rs. 6 lakhs
    • MIG 1 (Middle-income group 1): Total household income should be between Rs. 6 lakhs and Rs. 12 lakhs
    • MIG 2 (Middle-income group 2): Total household income should be between Rs. 12 lakhs and Rs. 18 lakhs

Apart from the PMAY eligibility, you’ll also need to fulfill the home loan eligibility criteria set by your desired lender.

Register for the Pradhan Mantri Awas Yojana (PMAY) scheme

After you have checked your eligibility, you can begin your PMAY application process. Here’s a step-by-step guide in filling the PMAY online form:

Step 1 – Log in to the official PMAY website: https://pmaymis.gov.in/

Step 2 – Click on the ‘Citizen Assessment’ drop-down menu and select the category you belong to.

Step 3 – Enter your Aadhaar number and click on ‘Submit.’

Step 4 – The website will verify your Aadhaar credentials through an OTP sent to your registered mobile number. Upon successful verification, you will be directed to the application form, where you will have to provide details such as your name, address, income, religion, caste, contact number, and the likes. Additionally, you will also have to submit the required documents.

Step 5 – After entering all the details and uploading all the documents, type in the Captcha and click ‘Submit.’

How to avail of the PMAY subsidy while applying for a loan

After your PMAY application is approved, you can visit a lender to apply for a loan. The lender will take care of the subsidy on your behalf. All you have to do is file a declaration that you meet the eligibility criteria. Once your loan application is approved, the lender will make the subsidy claim and complete all requisite formalities. After the nodal agency – National Housing Bank – approves the claim, the subsidy will be directly credited to your account.

While looking for a lender, it’s advisable to map out your repayment schedule in advance using a home loan EMI calculator. So, you can plan your EMIs better.

To sum up

With its subsidized home loan rates and tax benefits, PMAY takes a massive chunk of the financial burden off the shoulders of first-time homebuyers. So, if you’re looking for housing finance under PMAY, following the steps mentioned above would get you a lot closer to your dream home.

Beatrice Nelson

Explorer. Extreme communicator. Problem solver. Alcohol buff. Beer geek. Twitter nerd. Bacon lover. Food fan. Wannabe tv fanatic. Managed a small team deploying velcro in Bethesda, MD. Spent a weekend working with hobos in the financial sector. What gets me going now is merchandising plush toys in Ocean City, NJ. Garnered an industry award while merchandising dandruff for the government. At the moment I'm short selling Slinkies in New York, NY. Spent 2001-2006 researching terrorism in Salisbury, MD.

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