How the PMAY Subsidy Works
The Pradhan Mantri Awas Yojana (PMAY) Credit Linked Subsidy Scheme (CLSS) is designed to make housing affordable. It does not hand you cash. Instead, the government calculates the NPV (Net Present Value) of the interest subsidy and credits it directly to your loan account upfront.
- Direct Principal Reduction: If you take a loan of ₹15 Lakhs and get a subsidy of ₹2.67 Lakhs, the bank immediately reduces your principal. Your new EMI is calculated only on the remaining ₹12.33 Lakhs, drastically reducing your monthly burden.
- First Home Rule: To be eligible, you or your immediate family (husband, wife, unmarried children) must not own a pucca house anywhere in India.
- Women Ownership: For the EWS and LIG categories, it is mandatory that the property is co-owned by a female member of the family.