PMAY Scheme India 2025: Housing Subsidy Explained

Note: This content is specific to the Indian housing market.

The Pradhan Mantri Awas Yojana (PMAY) is India's flagship "Housing for All" mission. For homebuyers, the most relevant part is the Credit Linked Subsidy Scheme (CLSS).

Under this scheme, the government provides a direct cash subsidy to reduce the interest burden on your home loan.

How the Subsidy Works

The subsidy is credited upfront to your loan account, reducing your outstanding principal immediately. The amount depends on your income category:

1. EWS / LIG (Economically Weaker Section / Low Income Group)

• Annual Income: Up to ₹6 Lakhs.
• Subsidy: 6.5% interest concession.
• Max Benefit: Approx. ₹2.67 Lakhs.
• Mandatory: A woman must be a co-owner of the property.

2. MIG-I (Middle Income Group I)

• Annual Income: ₹6 Lakhs - ₹12 Lakhs.
• Subsidy: 4% interest concession.
• Max Benefit: Approx. ₹2.35 Lakhs.

3. MIG-II (Middle Income Group II)

• Annual Income: ₹12 Lakhs - ₹18 Lakhs.
• Subsidy: 3% interest concession.
• Max Benefit: Approx. ₹2.30 Lakhs.

Key Rules

• First Home: You or your immediate family must not own a pucca house anywhere in India.
• Carpet Area: There are strict limits on the size of the house (e.g., 60 sqm for LIG, 160 sqm for MIG-I) to ensure the subsidy targets affordable housing.

Conclusion

If you are buying your first home in India and fit the income brackets, PMAY can reduce your loan amount by over ₹2.5 Lakhs instantly. Ensure your lender processes the claim during the loan application.

👉 India PMAY Subsidy Calculator