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PMAY Extension : All You Need to Know

In the light of COVID-19, a home has yet again proved to be one of the most important necessities for individuals and the importance of having your own home cannot be neglected. Also, it has come out as one of the best asset classes for investing your money with the very high volatility seen in equity, mutual funds and commodities. 

With a mission of “Housing for All” the Modi Government has extended its PMAY scheme till March 31, 2021 to provide further relief to the first time homebuyers. 

This is a welcome move by the government that creates 2020 the perfect time to purchase your own home as the Home Loan EMI rates are at all-time low already and PMAY scheme provides further relief in the amount of monthly EMI. 


What is PMAY? 

To help the people of the country turn their dream of buying a home into a reality, Prime Minister Narendra Modi launched Pradhan Mantri Awas Yojana (PMAY) in June 2015 with an aim to provide affordable housing to all. Under this scheme, if you’re a first-time homebuyer, you can avail government subsidy on your EMI payments.


Credit Linked Subsidy Scheme (CLSS)

PMAY is a Credit Linked Subsidy Scheme (CLSS) and the subsidy scheme is applicable for: 

  • Lower Income Group/Economically Weaker Section (LIG/EWS) with annual income up to Rs. 6 Lacs.
  • Middle Income Group (MIG – I & II) with an annual income up to Rs. 18 Lacs. 


Annual Income

Income Group

Eligible for PMAY

PMAY Subsidy (Rs.)

Up to Rs. 6 Lacs




Rs. 6 Lacs to 12 Lacs




Rs. 12 Lacs to 18 Lacs




Above Rs. 18 Lacs



Not Eligible


How Does PMAY Scheme Work?

Let’s assume you’re buying your first home priced at Rs. 40 Lacs in Thanisandra Road, North Bangalore and your annual income is Rs. 10 Lacs. Based on the income group, you’ll be eligible for a subsidy of Rs. 2,35,068 which will be distributed towards the tenure of your home loan. 

Let’s say you take a home loan for 30 Lacs for a tenure of 15 years (180 months) at Interest Rate of 7.35% (the current starting rate of interest from SBI). Your monthly EMI without PMAY would be Rs. 27,555. However, PMAY benefit will reduce your EMI burden by Rs. 1,306/ month and your effective EMI would be Rs. 26,249. PMAY does create a huge impact when you’re making your monthly EMI payments. 



The scheme is primarily aimed at providing housing for all. The eligibility criteria for availing PMAY is:

  • The beneficiary family should not own a pukka house in his/her or in the name of any member of his/her family in any part of India.
  • In case of a married couple, either of the spouse or both together in joint ownership will be eligible for a single subsidy.

But, as per the guidelines, “An adult earning member (irrespective of marital status) can be treated as a separate household, provided that he/she does not own a Pukka (an all-weather dwelling unit) house in his / her name in any part of India.”

So, even if children (married or unmarried) are staying with their parents in a house owned by the parents (or on rent, in the same or another city), they can opt for PMAY provided they are earning and don’t own any other home.


Cases Where PMAY is Not Applicable

PMAY benefits can’t be exercised in the following situations: 

  • If your annual family income is more than Rs. 18 Lacs. Here the family includes individual, their spouse and children; parents’ income is not added.
  • If you already own a Pukka House in your name or your spouse’s name. Here, land is not included, so if you’re owning land, you can still apply for PMAY for your house.
  • The beneficiary family should not have availed of central assistance under any housing scheme from the Government of India or any benefit under any scheme in PMAY.


How to Avail PMAY Scheme 

Availing PMAY is a fairly easy process for home buyers. You just need to go to the official website of PMAY and download a subsidy form, fill the application form and attach the same along with bank loan application, and you're done!

If you are eligible for the scheme, you must avail its benefits as it will reduce your burden of EMI a little.

You may also take the assistance of your home loan provider in filling up and sending the application for availing this subsidy from the government.

How Can We Help?

Aspire Proptech is committed to providing comfortable living spaces to home buyers where we keep the needs of the homebuyer first and provide homes that match your requirements. We believe in empowering homebuyers with much-needed knowledge to make their home-buying a hassle-free process. 

If you’re looking to buy your first home and want to avail PMAY subsidy benefits or would like to discuss anything about the home-buying process right from finding the right home, legal checks and approvals, agreements and documentation, to moving in, our customer-friendly teams are always there for you.


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In case of any queries related to real estate, feel free to ask our team of experts!

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