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Almost everyone has an aspiration of having a dream home. There are several offerings which are making the home aspirants dip their feet into buying their dream home. But with the increasing real estate prices, it has become quite difficult to achieve that aspiration. Thanks to financial institutions and banks providing home loans at a competitive interest rate, it has become easy for the millennial. Banks today ensure to fulfil your dream with tailor-made home loans comprising of attractive interest rates and a plethora of features.

'Pradhan Mantri Awas Yojana ' (PMAY) is an initiative by Government of India in which affordable housing will be provided to the urban poor. The Government of India’s initiative, Pradhan Mantri Awas Yojana (PMAY) gives Indian citizens an interest subsidy to the qualifying families under the mission ‘Housing for All by 2022’.

The introduction of Pradhan Mantri Awas Yojana (PMAY), fulfills the housing needs of the mid-income and economically weaker segments. For those who already own a home or if their family member does, they are not eligible to opt for the PMAY initiative. This route map has been set to facilitate betterment of the people, thus resulting in the economic growth of the country.

The key features of Pradhan Mantri Awas Yojana (PMAY) are:

  • Government will provide an interest subsidy of up to 6.5% on housing loans availed by the beneficiaries for a period of 20 years under this scheme from the start of a loan
  • During the allocation of houses under the scheme of PMAY, the preference in allocating the ground floors will be given to the senior citizens and to the differently-abled.
  • All the houses built under PMAY scheme will have eco-friendly technology


Scheme Type




Eligibility Family Income (Rs.)

EWS – Rs. 0 to Rs. 3, 00,000
LIG – Rs. 3,00,001 to Rs. 6,00,000

Rs. 6,00,001 to

Rs.12,00,001 to

Carpet Area-Max (sq. m.)

30 sqm** / 60 sqm**



Interest Subsidy (%)




Max Subsidy (Rs.)

2.67 Lakh

2.35 Lakh

2.30 Lakh

Validity of scheme

31 March 2022

31 March 2019

31 March 2019

Woman Ownership


Non Mandatory

Non Mandatory

*The House constructed/acquired should be in the name of female head of the household or in the joint names of male head of the household and his wife. Only in cases, where there is no adult female member in the family, the house can be in the name of male member of the household. However this stipulation is applicable only for new purchases and not for new construction (on an existing piece of land) or for enhancement/repairs of an existing house.
**This Norm is currently relaxed.

With the introduction of PMAY, the home buying process has become much more affordable. If you are eager to begin your new journey as a home-owner, apply for PMAY and enjoy the subsidy.

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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.