Get the Tata Capital App to apply for Loans & manage your account. Download Now

Blogs

SUPPORT

Menu  
 
Apply Now
Apply Now

Tata Capital > Blog > Loan for Home > All you Need to Know About Pradhan Mantri Awas Yojana for Existing Home Loan

Loan for Home

All you Need to Know About Pradhan Mantri Awas Yojana for Existing Home Loan

All you Need to Know About Pradhan Mantri Awas Yojana for Existing Home Loan

For many in India, owning a home is an unachievable dream. To make this dream a reality, the Government of India has introduced an initiative called the Pradhan Mantri Awas Yojana (PMAY).

What Is the PMAY Scheme?

The PMAY Scheme aims to provide affordable housing to the economically weaker sections of society. You can become a homeowner on easy terms and benefits under the PMAY scheme. One of the major verticals of this programme – the Credit-Linked Subsidy Scheme, offers a Pradhan Mantri Awas Yojana subsidy on home loan interest rates. This home loan subsidy benefits the urban poor in availing of housing finance at cheaper ROIs. The PMAY subsidy amount depends on the applicant’s income and category. 

The beneficiaries of PMAY-U include.

  • Economically Weaker Sections (EWS)
  • Lower Income Groups (LIG)
  • Middle Income Groups (MIG)

Eligibility Criteria for PMAY Home Loan Subsidy

PMAY eligibility criteria are based mainly on household income and first-home ownership status. 

These are as follows:

  • Applicants must not own a pucca house anywhere in India to qualify for PMAY home loan subsidy eligibility.
  • The household must not have received benefits from any prior central or state housing scheme.

PMAY eligibility criteria follow income categories:

  • EWS: Annual household income up to ₹3 lakh
  • LIG: Annual household income between ₹3–6 lakh
  • MIG: As defined under the CLSS norms on the portal
  • The home loan and property must fall within the approved limits under the PMAY qualification rules.
  • Only first-time beneficiaries can avail subsidy under the CLSS component.

Here is a detailed outline of PMAY eligibility

BeneficiaryAnnual household incomeMaximum loan allowed for availing subsidyInterest rate  Subsidy
 EWSUp to Rs.3 lakhsRs.6 lakhs6.5% p.a.
LIGRs.3 to 6 lakhsRs.6 lakhs6.5% p.a.
MIG-1Rs.6 to 12 lakhsRs.9 lakhs4% p.a.
MIG-2Rs. 12 to 18 lakhsRs.12 lakhs3% p.a.

Also, read – Difference between PMAY Gramin and PMAY Urban

Benefits of the Pradhan Mantri Awas Yojana Subsidy

The PMAY scheme offers several advantages that make homeownership more affordable for first-time buyers. Understanding key PMAY subsidy benefits helps borrowers make informed decisions and maximise PMAY home loan benefits under the CLSS programme:

  • Lower EMI Burden: The interest subsidy reduces monthly EMIs, making home loans more affordable.
  • Reduced Total Interest: Borrowers pay significantly less interest over the loan tenure.
  • Support for First-Time Buyers: Designed to help families purchase their first pucca house in India.
  • Higher Support for EWS/LIG: Meaningful housing subsidy scheme benefits for lower-income households.
  • Flexible Use Cases: Can be used for home purchase, construction, extension, or improvement.
  • Reliable, Government-Backed System: Subsidy is processed through authorised lending institutions for transparency.

Also, read – How to Fill PM Awas Yojana Form Online – PMAY

Who Can Avail PMAY?

  • A beneficiary family should comprise of husband, wife, and unmarried sons or daughters.
  • The beneficiary must be a first-time homebuyer.
  • The beneficiary should not own any pucca house in their name or the name of any family member.
  • The beneficiary or their family should not have availed central assistance under the PMAY scheme or any other Government housing scheme.
  • Married couples can apply for subsidy under individual or joint ownership of the property; both options will receive just one subsidy.

You can also apply for the Pradhan Mantri Awas Yojana online. The PMAY online apply process is quite simple. Log onto the official scheme website and click on the ‘Citizen Assessment’ button to be redirected to an online application form. Input your Aadhaar card number in the form and click submit. Remember, before you fill out the application; make sure to check your eligibility and name in the beneficiary section of the PMAY list. 

Also, read – Why Should You Keep Women as a Co-owner to Avail PMAY Benefits?

Can Existing Home Loan Borrowers Avail PMAY Benefits?

According to the official PMAY-Urban guidelines, PMAY for existing home loan borrowers is not permitted. To receive the subsidy, the loan must be sanctioned as part of the PMAY scheme itself, and the applicant must meet all eligibility norms such as not owning a pucca house anywhere in India and not having received housing assistance earlier.

Therefore, PMAY subsidy for old loans or previously sanctioned home loans is not allowed. Only new loans that fulfil all CLSS income, property, and timeline conditions qualify under existing home loan PMAY rules.

Components of PMAY: Urban and Gramin Schemes

The Pradhan Mantri Awas Yojana operates through two major components – the PMAY Urban vs Gramin, each designed to meet different housing challenges. PMAY-U (Urban) focuses on providing affordable housing in cities through four key verticals: in-situ slum redevelopment, the credit-linked subsidy scheme (CLSS), affordable housing in partnership, and beneficiary-led construction. It targets low-income and middle-income families living in urban areas who need formal, secure housing.

On the other hand, PMAY-G (Gramin) is aimed at rural households living in kutcha or semi-pucca homes. It provides financial assistance to build safe, durable houses equipped with basic amenities such as sanitation, electricity, and clean water.

In essence, the PMAY-U and PMAY-G difference lies in their target beneficiaries, funding norms, and the type of housing support provided.

Also, read – Why Should You Keep Women as a Co-owner to Avail PMAY Benefits?

Interest Subsidy Scheme (ISS) and How It Lowers Your Home Loan Cost

Under PMAY-U 2.0’s Interest Subsidy Scheme (ISS) vertical, eligible beneficiaries can get an interest subsidy on home loans sanctioned and disbursed from 1 September 2024 onwards. This CLSS interest benefit leads to lower EMIs and a reduced overall repayment burden.

As part of the ISS home loan subsidy, eligible EWS, LIG, and MIG applicants receive varying levels of subsidy depending on income category and loan amount. The subsidy amount is adjusted against the principal loan amount, which reduces your effective EMI. 

Overall, this reduces home loan interest under PMAY, making homeownership more affordable by lowering monthly EMIs and reducing total interest outgo for eligible borrowers.

Documents Required for PMAY Application

To complete your PMAY application, you’ll need the following PMAY documents list as part of the eligibility and verification process:

  • Identity Proof (KYC): Aadhaar (mandatory), along with PAN card, voter ID, passport, or driving licence.
  • Address Proof: Aadhaar, utility bills, passport, or registered rent/ownership documents.
  • Income Proof:
    • Salaried: Salary slips, Form 16, recent bank statements.
    • Self-employed: ITRs, business registration, and bank statements.
  • Property Documents: Sale agreement, title deed/allotment letter, approved building plan, and builder receipts (if applicable).
  • Non-Ownership Declaration: Self-declaration confirming no pucca house owned by the applicant or family.
  • Bank Account Details: For subsidy credit and verification.
  • Category Certificates (if applicable): SC/ST/OBC/minority or disability certificates.

Also, read – How Much Time Does It Take to Get PMAY Subsidy?

How to Apply for the PMAY Scheme Online in 2025

If you are wondering how to apply PMAY scheme online, below is a guide:

  1. Visit the official PMAY-U portal (https://pmay-urban.gov.in/) and click on “Apply for PMAY-U 2.0.” This will take you to the designated application portal for the PMAY online application process. 
  2. Approach an authorised lender or state-level nodal agency eligible under CLSS. PMAY benefits under PMAY-U are processed through such approved institutions.
  3. Provide required documentation (identity, income proof, property documents, declaration of no prior pucca house, etc.) as per PMAY registration 2025 rules. 
  4. If you are eligible, subsidy under CLSS is applied by the lending institution, reducing interest burden automatically. 

Also, read – All you Need to Know About Pradhan Mantri Awas Yojana for Existing Home Loan

Track Your PMAY Application Status

Once your application is submitted, you can easily track progress through the official PMAY-Urban portal. To check PMAY status online, visit the PMAY-U website and use your Assessment ID, Aadhaar number, or application details to initiate a PMAY subsidy status check. The portal displays whether your application is approved, pending verification, or under process with the lending institution. 

Regularly monitoring your PMAY application status helps you stay updated on approvals, document requirements, or subsidy disbursal timelines. 

Also, read – How To Get Assessment ID For PMAY Now?

PMAY Scheme Updates and Government Initiatives

The government has introduced several important changes under the updated Pradhan Mantri Awas Yojana, offering fresh momentum to affordable housing. As part of the PMAY latest updates, the scheme has moved into a new phase with expanded support for urban and rural households.

Under PMAY government initiatives, the Urban component (PMAY-U 2.0) now includes revised subsidy guidelines, a stronger focus on beneficiary-led construction, and new provisions for Affordable Rental Housing Complexes (ARHC) to support migrant workers and low-income renters.

These new PMAY scheme changes also aim to fast-track approvals, improve transparency, and encourage states to accelerate construction progress. With several refinements planned for the coming year, the PMAY 2025 updates reflect the Government’s goal of widening access to safe, affordable housing across India.

If you’re wondering about applying for a home loan under this scheme, head to Tata Capital. You can also visit our website, to know more about Pradhan Mantri Awas Yojana for existing home loans.So, what are you waiting for? Check your Pradhan Mantri Awas Yojana eligibility and apply for a housing loan with Tata Capital’s home loan app today!

Get Home Loan Online

Say Hello to Your New Home with Our Easy Home Loans!

Apply now
Popular Searches
PMAY Calculator Home Loan for Government Employee Home Loan for Self Employed Home Loan for Women Home Loan Balance Transfer with Top Up Area Calculator Stamp Duty Calculator Home Loan Top Up Approved Housing Projects in India 12 Lakh Home Loan 15 Lakh Home Loan 25 Lakh Home Loan 30 Lakh Home Loan 35 Lakh Home Loan 40 Lakh Home Loan 45 Lakh Home Loan 60 Lakh Home Loan 65 Lakh Home Loan 70 Lakh Home Loan 75 Lakh Home Loan 80 Lakh Home Loan 85 Lakh Home Loan 90 Lakh Home Loan 1.5 Crore Home Loan 2 Crore Home Loan 2.5 Crore Home Loan 3 Crore Home Loan 4 Crore Home Loan
More About Loans
home loan Home Extension Loan Affordable Housing Loan Pradhan Mantri Awas Yojana Home Construction Loan Home Loan Balance Transfer Documents Required for Home Loan Home Loan Interest Rates Home Loan EMI Calculator Home Loan Eligibility 10 Lakh Home Loan 50 Lakh Home Loan 30 Lakh Home Loan 40 Lakh Home Loan

FAQs

What documents are needed to apply for PMAY subsidy?

 

For the PMAY scheme, applicants need Aadhaar Card, identity and address proof, income proof, recent bank statements, property documents, and a declaration confirming they don’t own a pucca house. Lenders may also request category certificates if applicable.

How to apply online for the PMAY scheme?

 

Visit the official PMAY-Urban portal and apply through the designated application link or via an authorised bank/HFI. Submit Aadhaar details, fill in personal and income information, upload required documents, and complete verification for a home loan subsidy 2025 through your lender.

What is the benefit of keeping women as co-owner under PMAY?

 

Listing a woman as co-owner offers added eligibility benefits and ensures preference under PMAY. Many states also provide lower stamp duty for women co-owners, reducing total home-purchase cost.

How to track PMAY application status?

 

You can track your PMAY application status through the official PMAY-Urban portal using your application or assessment ID. If you applied through a lender, the bank can also provide real-time subsidy status updates.

Is PMAY scheme valid for rural areas?

 

Yes. The PM housing scheme has two components—PMAY-Urban (PMAY-U) for cities and PMAY-Gramin (PMAY-G) for rural areas. PMAY-G supports construction of pucca homes for eligible rural households.

Disclaimer

Most Viewed Blogs

Trending Blogs

Calculator

Personal Loan EMI Calculator

Personal Loan EMI Calculator
Home Loan EMI Calculator

Home Loan EMI Calculator
Business Loan EMI Calculator

Business Loan EMI Calculator
Used Car Loan EMI Calculator

Used Car Loan EMI Calculator
Two Wheeler Loan EMI Calculator

Two Wheeler Loan EMI Calculator
Loan Against Securities Calculator

Loan Against Securities Calculator
Loan Against Property Calculator

Loan Against Property Calculator
More Tools
Our Subsidiaries
Our Private Equity Funds

Useful Links and Resources

Policies, Codes & Other Documents

Tata Capital Solutions & Services

Uh oh, something went wrong

Please try again later.

Most Important Terms & Conditions - Home Loans

Download in your preferred language

Download