Pradhan Mantri Awas Yojana Home Loan Interest Rates/Subsidy 2017

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There is a very good news for the home seekers, central government has announced even more subsidy in home loan interest rates under Pradhan Mantri Awas Yojana. Prime Minister Narendra Modi announced the interest subsidy on housing loans taken under Pradhan Mantri Awas Yojana during his speech to the nation on 31st December 2016.

The amount of home loan under the scheme has been increased by double to 12 Lakh and the interest subsidy would now be up to 4%. Below is the interest subsidy comparison of earlier PMAY scheme and revised scheme.

PMAY Loan Scheme for MIG: PM Awas Yojana Loan Scheme for MIG – Interest Rates, Subsidy & EMI

PMAY Home Loans Interest Rates/Subsidy for 2017

Subsidies ExplainedEarlier Scheme (2015) – CLSS for EWS/LIGRevised Scheme (2017) – CLSS for MIG
Loan AmountUp to Rs. 6 LakhUp to Rs. 9 LakhUp to Rs. 12 Lakh
Eligibility CriteriaEWS (Annual income of Up to Rs. 3 Lakh) and LIG (Income of up to Rs. 6 Lakh per annum). Women to be the co-owner along with the beneficiary.MIG 1 – Up to Rs. 12 Lakh per annumMIG 2 – Up to Rs. 18 Lakh per annum
Subsidy Calculation for a loan tenure of up to 15 years6.5%4%3%
Subsidy AmountRs. 2.2 Lakh for a loan of 6 lakhRs. 2.35 Lakh for a loan of Rs 9 LakhRs. 2.3 Lakh for a loan of Rs. 12 Lakh
Interest Rates and Subsidy
Interest Rate10.5%8.5%
Loan AmountRs. 12 LakhRs. 9 Lakh or MoreRs. 12 Lakh or More
Amount Eligible for SubsidyRs. 6 LakhRs. 9 LakhRs. 12 Lakh
Subsidy Rate6.5%4%3%
Subsidy Amount2.2 Lakh2.35 Lakh2.3 Lakh

The increased loan amount under the PM Awas Yojana will significantly reduce the monthly installments. The central government instead of 6.5% subsidy on loans up to Rs. 6 Lakh, now providing 4% subsidy on loans up to Rs. 9 Lakh and 3% for home loans up to Rs. 12 Lakh. The loans under PMAY can be availed for a maximum tenure of 20 years (earlier 15). The government has also introduced two new middle income group categories under the scheme.

At present, the home loans are available from banks and non banking financing companies at interest rates of about 9%. After the interest subvention of 4%, the effective interest rate would fall to 5% which will result in significant reduction in EMI’s.

PMAY Home Loan Interest Rate Calculation

For example, if an individual takes loan of Rs 9 lakh for a 15 years, 4% lower interest rate would save him Rs. 2,011 in EMI every month as his EMI will come down from Rs 9,128 to Rs 7,117. Similarly, on a loan of Rs 12 lakh will save Rs 2,044 in EMI on account of the 3 per cent lower interest rate.

Online Applications for Pradhan Mantri Awas Yojana – Urban are being invited through CSC’s and official website at

The central government is also providing interest subvention of 3% on home loans taken in 2017 for new home construction or renovation under PM Awas Yojana – Gramin. Find the complete details of PMAY-G home loan scheme 2017 announced by Narendra Modi.

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329 thoughts on “Pradhan Mantri Awas Yojana Home Loan Interest Rates/Subsidy 2017”

  1. Sir mujhe 6 lakh ka loan cahiye mera ghar miti ka hai or mere papa ek farmer h or hamare family ko bahut hi paresani udani padti h hamra ghar plastic se chaw kar rahte hai plz aap se request h hamlog ko lone dene ki kirpa kare

  2. loam sirf ameero ke liye hota h ap kisi bhi private job vale se pay sleep mangte h or koi insaan15000ki job h kya vo ghar bnane ka spna ni dekh skta or private company ni deti pay sleep agr gareebo ke liye kuch krna h to sach me kro nam ke liye ni ……………aisa kro ki usse sach me loan mil skte ….bade bade logo ko loan de dete h bima proff but jo sach mr loan ke liye h usse ni dete….

  3. bhai 6 lac wala loan modi sarkar aap ko is janam me to nahi de sakti ,par ha is baat ki gurranty hai agar bjp ki sarkar us time hui to yeh loan aap o agle janam m bhi nahi millega

  4. I had drawn Pradhan Mantri awas yojana loan 9 lakh through LIC housing. My loan account number is 210400005267. But no rebate received tii date. Where should I applied / complained.


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