The Pradhan Mantri Awas Yojana (PMAY) has made it possible for India’s poor urban and rural population to fulfil their dreams of having their own homes. The scheme was launched in 2015 by PM Narendra Modi.

The PMAY housing scheme has the provision to build affordable houses using eco-friendly and sustainable construction technologies. Besides this, PMAY also offers an interest subsidy of up to 6.5% and 2.67 lakh on home loans.

Read on and know about a few vital factors about PM Awas Yojana’s home loan interest subsidy!

A quick look at PMAY home loan interest subsidy facts

1. The income category for availing of home loan interest subsidy is divided into groups. They are Economically Weaker Section (EWS), Lower Income Group (LIG), and Mid Income Group 1 and 2 (MIG 1 and MIG 2).

2. For EWS, they should have a yearly income of up to Rs.3 lakh to get a maximum home loan of up to Rs.6 lakh. They can get a 6.5% subsidy on housing loan interest rate to the tune of Rs.2.67 lakh.

3. LIG PMAY applicants with an annual income between Rs.3 lakh and Rs.6 lakh can avail 6.5% home loan interest subsidy of Rs.2.67 lakh. The loan amount is Rs.6 lakh.

4. MIG 1 applicants should have a yearly income between Rs.6 lakh to Rs.12 lakh with a home loan interest subsidy of 4% up to Rs.2.35 lakh. The maximum housing loan stands at Rs.9 lakh.

5. For MIG 2, the maximum home loan amount is Rs.12 lakh. The applicants should have a yearly earring ranging between Rs.12 lakh and Rs.18 lakh. The maximum subsidized interest amount is Rs.2.3 lakh. The subsidy on housing loan interest rate is 3%.

If you don’t have any pucca home anywhere in India, you can make the most of the PMAY home loan interest subsidy and save on repayments.

Also Read: PMAY Scheme – Does it Really Benefit The Homeless?