Envisioned by our Hon. Prime Minister Shri Narendra Modi in the Joint Session of Parliament on 9th June 2014, the Pradhan Mantri Awas Yojana (PMAY) is a mission with an aim of providing ‘Housing for All (HFA)’ to be achieved by 2022, by when India would be completing 75 years of independence.
Own a home and save up to Rs. 2.67 Lakhs
Envisioned by Hon. Prime Minister Shri Narendra Modi, PMAY is designed specifically to help citizens from the Economically Weaker Sections (EWS) and Low Income Groups (LIG) realize their dream of owning a home. These sections can now seek housing loans from banks, housing finance companies and similar institutions to purchase new homes and also avail a subsidy of up to Rs. 2.67 lakhs on their first home.
- This mission seeks to address the housing requirements of our urban poor, including slum dwellers, through the following program verticals.
- The scheme is available only for loan amounts of up to Rs. 18 lakhs and would have a subsidized interest rate of 6.5% for 15 years or for the tenure of loan, whichever is lower.
- The Net Present Value (NPV) of the interest subsidy will be calculated at a discount rate of 9%.
- Any additional loans beyond Rs. 6 lakhs will be at a non-subsidized rate. Interest subsidy will be credited upfront to the loan account of beneficiaries through lending institutions, resulting in a reduced effective housing loan and equated monthly installments (EMI).