Here’s How You Can Get Your Dream House Under the Pradhan Mantri Awas Yojana (PMAY)

Gone are the times when a house was the most significant investment in one’s life. We have entered an era where the government is proactively pursuing the interests of Indian citizens. Various schemes and facilities run by the central and state governments are benefiting millions of Indians. The Pradhan Mantri Awas Yojana (PMAY) is one such scheme that has garnered the support of the masses. It is changing lives and making life easier by ensuring shelters for every Indian citizen who cannot build a house in their sole capacity.

What is Pradhan Mantri Awas Yojana?

The Pradhan Mantri Awas Yojana (PMAY) is Government of India scheme that makes housing more affordable for the urban poor. The scheme came into effect from 1 June 2015 and recently, the deadline for availing a home loan under the PMAY-CLSS (Credit Linked Subsidy Scheme) has been extended till 31 March 2021 for borrowers in MIG-I and MIG-II categories, and till 31 March 2022 for borrowers in the EWS and LIG categories. The PMAY-CLSS scheme allows the borrower to get a subsidy from the government, which reduces the effective home loan EMI amount. It deserves worth mentioning that borrowers in LIG and MIG categories are only eligible to get subsidy under CLSS, while EWS beneficiaries receive complete assistance from the Government of India. If you are an eligible borrower, you can avail the loan and subsidy for the purchase, construction, improvement, or extension of a house. Check PNB Housing’s free home loan EMI calculator to calculate the net cost of a home loan under the PMAY scheme.

Who is Eligible to Avail a Loan Under the PMAY-CLSS Scheme?

The benefits of lower effective home loan EMIs under the Pradhan Mantri Awas Yojana scheme can be availed by the following four categories of Indian citizens:

  1. Middle Income Group I (MIG I) – These are the borrowers whose annual income is between INR 6 lakh and 12 lakh.
  2. Middle Income Group II (MIG II) – These borrowers have an annual income in the range of INR 12 lakh and Rs.18 lakh.
  3. Lower Income Group (LIG) – These beneficiaries have a net annual income between INR 3 lakh and 6 lakh.
  4. Economically Weaker Section (EWS) – Anyone whose annual income is below INR 3 lakh falls under this category.

If you belong to any of the four categories of people mentioned above, you can get a subsidy on your home loan and pay lower effective EMIs under the PMAY-CLSS subsidy scheme.

Things to Remember Before Availing a Home Loan Under the PMAY-CLSS Scheme

Before availing the benefits of lower effective home loan EMIs under the PMAY-CLSS scheme, you need to keep the following things in mind:

  • The benefit of the interest subsidy is for a tenure of 20 years
  • PMAY-CLSS only apply to first-time homebuyers
  • The applicant can be anyone from your family, like yourself, your spouse, and unmarried son or daughter
  • For the LIG and EWS category of investors, women ownership is mandatory.


While the Pradhan Mantri Awas Yojana (PMAY)-CLSS gives you an interest subsidy, it is ultimately the lender whose terms and conditions determine the satisfaction level. A reputed lender, such as PNB Housing, offers you significant benefits and guides you with the application procedure for receiving the subsidy benefits.