PMAY Calculator (Pradhan Mantri Awas Yojana) — Free (2026)

Understanding Pradhan Mantri Awas Yojana (PMAY)

Pradhan Mantri Awas Yojana is a flagship government scheme launched in 2015 to provide affordable housing to every Indian household. Under PMAY, eligible buyers receive a substantial interest subsidy on home loans, effectively reducing both their EMI and total interest burden.

Our PMAY Calculator helps you determine your eligibility, calculate the exact interest subsidy you'll receive, understand the reduced EMI, and plan your home purchase accordingly.

PMAY Categories and Eligibility

PMAY is divided into four income-based categories:

1. EWS (Economically Weaker Section)

• Annual Income: Up to ₹3 lakh
• Interest Subsidy: 6.5% on home loans up to ₹6 lakh
• Maximum Loan Amount: ₹6 lakh
• Carpet Area Limit: 30 sq.m (maximum)
• Property Value Limit: Up to ₹5 lakh
• Mandatory Condition: Property must be in the name of a woman or jointly with a man

2. LIG (Low Income Group)

• Annual Income: ₹3 lakh to ₹6 lakh
• Interest Subsidy: 6.5% on home loans up to ₹6 lakh
• Maximum Loan Amount: ₹6 lakh
• Carpet Area Limit: 60 sq.m (maximum)
• Property Value Limit: Up to ₹9 lakh
• Mandatory Condition: Property must be in the name of a woman or jointly with a man

3. MIG-I (Middle Income Group - Category I)

• Annual Income: ₹6 lakh to ₹12 lakh
• Interest Subsidy: 4% on home loans up to ₹9 lakh
• Maximum Loan Amount: ₹9 lakh
• Carpet Area Limit: 160 sq.m (maximum)
• Property Value Limit: Up to ₹27 lakh
• Woman Ownership: No mandatory requirement

4. MIG-II (Middle Income Group - Category II)

• Annual Income: ₹12 lakh to ₹18 lakh
• Interest Subsidy: 3% on home loans up to ₹12 lakh
• Maximum Loan Amount: ₹12 lakh
• Carpet Area Limit: 200 sq.m (maximum)
• Property Value Limit: Up to ₹40 lakh
• Woman Ownership: No mandatory requirement

How PMAY Interest Subsidy Works

The interest subsidy is calculated on the loan amount at the tenure and rate of interest you have selected, subject to the maximum loan amount for your category.

Formula: Subsidy Amount = (Subsidy Rate × Maximum Loan for Category × Tenure in Years) / 100

Key Points:

• Subsidy is credited as a principal reduction: The subsidy amount is credited to your loan account as a one-time reduction in principal, effectively lowering your EMI.
• Applied at the beginning: The subsidy calculation is done at the time of loan disbursement and is typically credited as a principal prepayment.
• Only on first purchase: PMAY subsidy is available only for first-time homebuyers.
• Not hereditary: The subsidy is for the individual beneficiary, not the property.

Example Calculation

Scenario: A person earning ₹8 lakh per annum (MIG-I category)

• Loan Amount Required: ₹9 lakh (within ₹9L limit for MIG-I)
• Rate of Interest: 8% per annum
• Loan Tenure: 20 years

Without PMAY:

• EMI = ₹8,164
• Total Interest Paid = ₹95,94,286

With PMAY (4% subsidy):

• Subsidy Calculation: (4 × 9,00,000 × 20) / 100 = ₹7,20,000
• Effective Loan Amount: ₹9,00,000 - ₹7,20,000 = ₹1,80,000
• New EMI = ₹1,633
• Total Interest Paid = ₹11,88,857
• Total Savings = ₹84,05,429 (80% reduction in interest!)

PMAY Property Eligibility

To qualify for PMAY subsidy, the property must meet certain criteria:

Property Type:

• Residential property (house or apartment)
• Cannot be a commercial space or mixed-use property
• First-ever property purchase

Location:

• Must be in a notified city
• Typically in urban or semi-urban areas
• Cannot be in a rural area or high-value city

Area Specifications:

• EWS: Max carpet area of 30 sq.m
• LIG: Max carpet area of 60 sq.m
• MIG-I: Max carpet area of 160 sq.m
• MIG-II: Max carpet area of 200 sq.m

(Carpet area = usable floor space excluding walls, balconies, and common areas)

Documents Required for PMAY

To avail the PMAY subsidy, you typically need:

1. Income Proof: Last 3 months' salary slips, ITR (for self-employed), or bank statements
2. Identity Proof: Aadhar, Passport, Driving License, or Voter ID
3. Address Proof: Same as above
4. Property Documents: Sale deed, layout plan, building approval
5. Loan Sanction Letter: From your bank or lender
6. Bank Account: IFSC code and account details
7. Property Valuation Certificate: For some categories

Key Advantages of PMAY

• Massive Interest Savings: Up to 80% reduction in total interest for EWS/LIG categories
• Lower EMI: Reduced monthly burden due to subsidized principal
• Women-Centric: EWS/LIG categories incentivize female property ownership
• Simple Documentation: Transparent and straightforward process
• Government Backed: No hidden conditions or rejections

Formula

Property Valuation Formula

Basic property valuation formula:

Property Value = Built-up Area × Price per Sq.ft + Land Value

Where:

• Built-up Area = Total constructed area in sq.ft
• Price per Sq.ft = Market rate for the location
• Land Value = Value of underlying land

Capital Gains Calculation

For property held more than 2 years (Long-term):

Capital Gains = Sale Price - Cost of Acquisition - Improvement Costs - Transaction Costs

Stamp Duty and Registration

Standard charges for property purchase:

Total Additional Cost = Stamp Duty (5%) + Registration (1%) + Brokerage (1%) + Legal (0.5%)
Total Purchase Cost = Property Price + Additional Charges

Comparison & Examples

PMAY Loan Amount & Terms

Property Type	Min Loan	Max Loan	Max Tenure	Subsidy
1st Time	₹50,000	₹45 Lakhs	20 years	6.5%
Self-Construction	₹50,000	₹45 Lakhs	20 years	6.5%
Home Improvement	₹50,000	₹20 Lakhs	10 years	3%

PMAY Eligibility by Income

Category	Annual Income	Loan Amount	Subsidy Rate
EWS	Up to ₹3 Lakhs	Up to ₹45 Lakhs	6.5%
LIG	₹3-6 Lakhs	Up to ₹45 Lakhs	6.5%
MIG I	₹6-12 Lakhs	Up to ₹45 Lakhs	6.5%
MIG II	₹12-18 Lakhs	Up to ₹45 Lakhs	6.5%

Frequently Asked Questions

Can a non-first-time homebuyer apply for PMAY?

No, PMAY subsidy is exclusively for first-time homebuyers. If you already own a property, you are not eligible for the scheme, regardless of your income level.

What is the difference between PMAY and other home loan schemes?

PMAY specifically provides an interest subsidy (reducing your principal), while other schemes like LTV-based concessions or cashback offers work differently. PMAY is the most beneficial for low and middle-income groups.

Can I apply for PMAY if my property is in a joint name with my spouse?

Yes, joint ownership is allowed and even encouraged for EWS/LIG categories. However, for EWS/LIG, the property must be in the name of a woman (either sole owner or co-owner with her spouse).

What if my actual loan amount is less than the maximum allowed?

The subsidy is calculated on the actual loan amount you take, not the maximum allowed. So if you borrow ₹4 lakh instead of ₹6 lakh, the subsidy will be correspondingly lower.

Is PMAY applicable to NRI or overseas citizens?

PMAY is not available to NRIs or overseas citizens. The scheme is limited to Indian residents and first-time homebuyers residing in India.

Can I transfer the PMAY subsidy benefit if I sell the property later?

No, the PMAY subsidy is a one-time benefit tied to the property. If you sell the property, you cannot transfer the benefit to another property. However, you can get PMAY subsidy again if you buy a second property as your primary residence (subject to eligibility changes).

What happens if my income exceeds the category limit after applying?

If your income increases after you've applied but before the loan is sanctioned, you may be eligible for a higher category. However, once the loan is disbursed and subsidy is credited, your category cannot be changed retroactively.

Are there any tax benefits in addition to PMAY subsidy?

Yes, you still get Section 24 interest deduction (up to ₹2 lakh annually) and Section 80C principal repayment deduction (up to ₹1.5 lakh annually). PMAY subsidy is in addition to these tax benefits.

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Disclaimer

This calculator is provided for informational purposes only. It is not financial, investment, tax, or professional advice. Results are estimates based on the assumptions and inputs you provide. Always consult with a qualified financial advisor or tax professional before making any financial decisions. Past performance is not a guarantee of future results.

Sources & References

The figures, formulas, and guidance behind this PMAY Calculator India | Pradhan Mantri Awas Yojana draw on authoritative primary sources. For verification and further reading:

• Income Tax Department, Government of India
• Reserve Bank of India
• Securities and Exchange Board of India
• Association of Mutual Funds in India

Frequently Asked Questions