Pradhan Mantri Awas Yojana is an initiative by the government of India that lays down subsidies on interest rates for first time home buyers. PMAY is beneficial to middle and low income individuals, and makes the dream of buying the first home a financial success. The aim of Pradhan Mantri Awas Yojana is to make housing available to all through projects built in select cities and rural areas.

You are eligible for home loan EMI subsidy from this scheme if you are among the following:

Economically Weaker Section (EWS)

These are individuals who earn an annual income less than Rs. 3 Lac. A person applying under the EWS category will have to show relevant proof to be applicable. This section aims to give a hand up to the economically weak sections of the country.

Light Income Group (LIG)

 Those under the light income group are typically with an average housing income ranging between 3 Lac and 6 Lac annually. To be eligible for application under the LIG group one must provide relevant proof.

Medium Income Group (MIG - 1)

The household income of a middle income group is not more than Rs. 12 Lac annually. This group is eligible for subsidies under PMAY scheme. The scheme is for individuals of middle income groups who wish to buy their first home.

Medium Income Group (MIG - 2)

People earning from Rs. 12 Lac to Rs. 18 Lac annually fall under the MIG - 2 category. To be eligible for application under the MIG - 2 group one must provide relevant proof of the same.

Minority groups & People belonging to SC/ST/OBC

People hailing from SC/ST/OBC caste will be applicable for PMAY scheme on presentation of the relevant caste and income certificates. PMAY is a scheme that intends to bring comfortable and modern homes closer to the people of India. With the Pradhan Mantri Awas Yojana your dream of owning a first home is not as difficult as it was before. For more information you can request for a callback online and get in touch with our representative.

Few more conditions for eligibility

  • Beneficiary max age 70 years
  • The beneficiary family should not own a pucca house in his/her or in the name of any member of his/her family in any part of India.
  • In case of married couple, either of the spouse or both together in joint ownership will be eligible for a single subsidy.
  • The beneficiary family should not have availed of central assistance under any housing scheme from Government of India or any benefit under any scheme in PMAY.The beneficiary family will comprise husband, wife and unmarried children. (An adult earning member irrespective of marital status can be treated as a separate household in MIG category)
  • The interest subsidy will be available for a maximum loan tenure of 20 yrs or the loan tenure whichever is lower. 


CLSS Scheme Type Eligibility Household Income ( Rs.) Carpet Area-Max (sqm) Interest Subsidy (%) Subsidy calculated on a max loan of Loan Purpose Validity of scheme Max Subsidy (Rs.) Woman Ownership
EWS and LIG Upto Rs. 6,00,000 60 sqm 6.50 % Rs. 6,00,000 Purchase/Self Construction/Extension 31/03/2022 2.67 Lacs Yes *
MIG 1 ** Rs. 6,00,001 to Rs. 12,00,000 160 sqm 4.00 % Rs. 9,00,000 Purchase/Self Construction 31/03/2019 2.35 Lacs Not Mandatory
MIG 2 ** Rs. 12,00,001 to Rs. 18,00,000 200 sqm 3.00 % Rs. 12,00,000 Purchase/Self Construction 31/03/2019 2.30 Lacs Not Mandatory


* woman ownership is not mandatory for construction / extension

*As per amendment dated 15.03.2018, an adult earning member (irrespective of martial status) can be treated as a separate household. Provided also that in case of a married couple, either of spouses or both together in joint ownership will be eligible for a single house, subject to income eligibility of the household under the scheme.

**for MIG - 1 & 2 loan should be approved on/or after 1-1-2017

PMAY is a scheme that lets you buy property with easier to obtain home loans and finance schemes. Now is the exact time to invest in a home with the help of Pradhan Mantri Awas Yojana. For more information you can request for a callback online and get in touch with our representative. 

Disclaimer: Terms & Conditions Apply.
Credit at sole discretion of Kotak Mahindra Bank Ltd and subject to guidelines issued by RBI from time to time. Bank may engage the services of marketing agents for the purpose of sourcing loan assets.

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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.