Credit Cards & Personal DebtUpdated July 2026Reviewed by Myat Finance TeamFree & Privacy-First

PMAY Subsidy Calculator

Key Takeaway

Under PMAY-CLSS, EWS/LIG families (income up to ₹6 lakh/year) can receive a maximum interest subsidy of ₹2.67 lakh on home loans up to ₹6 lakh, credited upfront to reduce the loan outstanding.

PMAY Subsidy Calculator

Estimate PMAY CLSS interest subsidies based on household annual income.

PMAY Eligibility Output

Eligible Category:LIG
Interest Subsidy Rate:6.5%
Subsidy Cap Loan Limit:6,00,000
Estimated Upfront Subsidy Credit:2,67,280

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The Middle-Class Welfare Check

Subsidy = Net Present Value (NPV) of interest saved at a concessional rate over 20 years

The Pradhan Mantri Awas Yojana (PMAY) Credit Linked Subsidy Scheme (CLSS) provides upfront cash subsidies to first-time homebuyers in EWS, LIG, and MIG categories. The government calculates the interest you would save over 20 years and deposits that exact amount directly into your loan account on day one, slashing your principal.

The ₹2.67 Lakh Gift: Meera's First Home

Meera's family income is ₹5 Lakhs per year (qualifying for the LIG category). She buys her first home and takes a ₹12 Lakh loan.

Under PMAY, the government subsidizes the interest on the first ₹6 Lakhs of her loan at a massive 6.5%.
The bank calculates the NPV of this subsidy over her 20-year tenure, which comes to exactly **₹2.67 Lakhs**.

A month after her loan is disbursed, the government credits ₹2.67 Lakhs directly to her home loan account.
Her outstanding principal instantly drops from ₹12 Lakhs to ₹9.33 Lakhs. Her monthly EMI drops permanently, saving her from immense financial pressure. PMAY is essentially a free down-payment grant from the government for the middle class.

Don't Leave Free Government Money on the Table

The Pradhan Mantri Awas Yojana (PMAY) is arguably the greatest housing initiative in Indian history. If you qualify, the government pays the bank a massive upfront subsidy on your home loan interest.

If you fall under the MIG-I category, you can get an interest subsidy of roughly ₹2.35 Lakhs. When this is credited to your loan upfront, it permanently destroys the interest that amount would have accrued over 20 years. This single subsidy can save you over ₹6 Lakhs in total interest outflows.

Calculate your exact eligibility and demand the subsidy before your loan is disbursed.

Frequently Asked Questions

What is the PMAY scheme?

Pradhan Mantri Awas Yojana (PMAY) is a Credit Linked Subsidy Scheme (CLSS) by the Government of India aimed at providing affordable housing by subsidizing home loan interest rates for EWS, LIG, and MIG categories.

Who is eligible for PMAY subsidy?

Eligibility depends on the household income category. Crucially, the beneficiary family must not own a pucca house anywhere in India, and it must be their first home purchase.

How is the subsidy applied?

The subsidy amount is credited upfront to the loan account of beneficiaries, which effectively reduces the outstanding principal amount and consequently lowers the EMI.

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