How to Calculate Your Subsidy Amount Under PMAY Scheme

The Pradhan Mantri Awas Yojana was launched in June 2015 with the aim of providing ‘’Affordable Housing for All’’ by the year 2022. Under this scheme, eligible households get subsidies on the interest component of their home loans which helps to bring down the overall loan amount that they have to pay back to the bank or Non-Banking Financial Company (NBFC).

With BankBazaar you can check the latest home loan interest rate for all the banks and NBFCs in India. The lower interest rate helps to reduce the Equated Monthly Instalment (EMI) that they have to pay which gives them more money in hand for other expenses and savings. The Credit-Linked Subsidy Scheme provides these subsidies through funding from the government as well as through private-public partnerships. 

Subsidy Calculation 

How much subsidy you are eligible for will depend on the income category that you come under. There are basically four different income categories with different interest subsidies which are as given below: 

• EWS: For households that have an annual income of up to Rs.3 lakh 
• LIG: For households that have an annual income ranging from Rs.3 lakh to Rs.6 lakh 
• MIG I: For households that have an annual income between Rs.6 lakh to Rs.12 lakh 
• MIG II: For households that have an annual income that ranges from Rs.12 lakh to Rs.18 lakh 
• The interest subsidies for the above categories are as given below: 
• EWS and LIG: The interest subsidy for this category is 6.5%. This is limited to a maximum loan amount of up to Rs.6 lakh. 
• MIG I: The interest subsidy is 4% for a loan amount of up to Rs.9 lakh. 
• MIG II: The interest subsidy is 3% for a loan amount of up to Rs.12 lakh. 

Online PMAY Subsidy Calculator 

Are you eager to know how much subsidy you will be eligible for under PMAY? There’s a very simple way to do it. All you have to do is visit the official PMAY (U) website where you will find the online subsidy calculator at https://pmayuclap.gov.in/content/html/subsidy-calc.html. 

Once you are on that page, all you have to do is use the online sliders to input the following data: 

• Your annual family income 
• The loan amount that you require 
• Your loan tenure (the maximum repayment tenure is 20 years for all categories) 
• The carpet area of the residential unit 
• Your subsidy category 
• Whether this is your first pucca house 

The subsidy amount will be instantly generated on the page. 

About the Interest Subsidy 

The interest subsidy amount is the Net Present Value (NPV) and not the differential of the interest amount. You will have to pay interest on the remaining amount after deduction of the interest subsidy amount from the total loan amount. The interest on the remaining amount is calculated based on the existing rate offered by the lender. 

Payment of PMAY Interest Subsidy 

The interest subsidy will be credited to your loan account upfront by the government after the documents are sent by the lender and the required verification is completed by the authorities. 

The PMAY scheme makes it possible for you to own your dream home while also saving money and tax.