PMAY Gramin Home Loan Scheme

PMAY Gramin Home Loan Scheme 2021: Pradhan Mantri Awas Yojana Gramin (PMAY-G), the facelift of Indira Awaas Yojana Gramin Awas Yojana, has now become more attractive to the beneficiaries. The Prime Minister Shri Narendra Modi on 31st December 2016 announced the new Home Loan Scheme under PMAY-G under which the Central Government will provide interest subsidy on home loans in rural areas.

Till now, there was an alternative home loan scheme under Pradhan Mantri Awas Yojana – Gramin, with a maximum loan amount of Rs. 1.20 lakh in plains and Rs. 1.3 lakh in hill states, difficult areas and IAP district in addition to financial assistance. The complete details of PMAY Gramin Home Loan Scheme announced by Narendra Modi are given below.

PMAY Rural Home Loan Scheme 2021

As per the announcement, the home loan of Rs. Interest subvention of 3% will be available on Rs 2 lakh taken in 2021 for construction or expansion of houses in rural areas. The 3% subsidy on interest on home loan under PMAY-G will reduce the effective interest rate and hence the EMI by a significant margin.

Home loans are currently available from nationalized banks, private banks and non-banking finance institutions at an average interest rate of 8.5%. After a subsidy of 3% under PMAY-G, the effective interest rate comes down to around 5.5%, resulting in lower EMIs and hence the interest burden on the borrower.

Given below is the basic calculation of subsidy/interest rates and EMI for PMAY-G home loan.

PMAY-G Home Loan EMI Calculation

home loan amount tenure in months bank interest rate subsidy EMI before subsidy in Rs. EMI after subsidy in Rs.
Rupee. 2 lakh 24 8.5% 3% 9091.13 8819.13
36 6313.51 6039.18
48 4929.66 4651.3
60 4103.31 3820.23

The calculation is done with an average interest rate of 8.5% and a maximum of Rs. based on the loan amount. 2 lakh for a tenure of 2 to 5 years. Home loan under Pradhan Mantri Awas Yojana – Gramin can be obtained from any national, cooperative rural bank, private bank or non-banking financial institution.

Get more details about PM Awas Yojana Gramin in English and Hindi on below link
in English: Pradhan Mantri Awas Yojana – Gramin
in Hindi: Pradhan Mantri Awas Yojana – Rural

Official website for PMAY Gramin Home Loan Scheme 2021 –

Central Government Schemes 2021Central Government Scheme HindiPopular Schemes in the Centre:Pradhan Mantri Jan Arogya Yojana PMAY-U Beneficiaries List Pradhan Mantri Ujjwala Yojana

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