One of the most important factors that rules the mind of a prospective home buyer is the cost of the house. It is in view of this that the Government has introduced the Pradhan Mantri Awas Yojana (PMAY) for a home buyer who opts for a home loan while buying his/her first pucca house. Through this scheme, home loan borrowers can avail subsidy on the interest part of the EMI, thus reducing the financial burden during EMI repayment. Here are some guidelines to avail the scheme.

Ensure that your builder is RERA registered

The Real Estate Regulatory Authority Act (RERA) is a Government Act which seeks to protect the interests of home buyers. It is mandatory for all commercial and residential real estate projects to register with RERA.

Do ensure that your lending bank is linked with PMAY

There are many home loan providers who are linked with PMAY. Make sure to confirm this important aspect with the lending bank that you wish to go with for a home loan.

Know your eligibility from your income point of view

From an overall sense, a borrower can be a beneficiary of PMAY only if his family income does not exceed the limit of Rs. 18,00,000.

Only first time home buyers are eligible for PMAY

The beneficiary family (comprising husband, wife and unmarried children) should not own a ‘pucca’ house and it should not have availed central assistance under any housing scheme from the Government of India. Beneficiary family members have to provide their Aadhaar numbers while applying for the loan.

How to calculate the PMAY Subsidy

You can calculate the PMAY Subsidy applicable to you by using the Pradhan Mantri Awas Yojana website, here and by furnishing the following details;

  • Total loan amount
  • Rate of interest
  • Total loan period (in months)


After submitting the details click on the ‘calculate’ option to know the Subsidy  amount.

PMAY curtails the interest rate component of EMI outgoings for its beneficiaries who wish to opt or who have already opted for a home loan. Real Estate property has a history of value appreciation and the scheme comes as a major respite for home buyers wishing to capitalize on the best opportunity to own a home.

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Disclaimer: This Article is for information purpose only. The views expressed in this Article do not necessarily constitute the views of Kotak Mahindra Bank Ltd. (“Bank”) or its employees. Bank make no warranty of any kind with respect to the completeness or accuracy of the material and articles contained in this Newsletter. The information contained in this Article is sourced from empaneled external experts for the benefit of the customers and it does not constitute legal advice from Kotak. Kotak, its directors, employees and the contributors shall not be responsible or liable for any damage or loss resulting from or arising due to reliance on or use of any information contained herein.