PMAY – Interest Rates and Charges

The Pradhan Mantri Awas Yojana (PMAY) scheme helps you avail of a home loan for purchase, self-construction, or improvement of your house at a subsidised interest rate. If you’re a first-time homebuyer, you can apply for a PMAY Home Loan with Poonawalla Housing Finance and reduce your home-ownership cost by up to ₹ 2.67 lakh.

Under the PMAY, a Credit Linked Subsidy Scheme (CLSS) is provided to eligible customers. Under this scheme, an interest subsidy of up to 6.5% is offered to eligible home loan customers.

The beneficiaries of the PMAY scheme as divided into four categories as per their annual household income.

1. Economically Weaker Sections (EWS) – Annual household income of up to ₹ 3 lakh
2. Low Income Group (LIG) – Annual house income between ₹ 3 to 6 lakh
3. Mid-Income Group I (MIG I) – Annual household income between ₹ 6 to 12 lakh
4. Mid-Income Group II (MIG II) – Annual household income between ₹ 12 to 18 lakh

The interest rate subsidy under PMAY is different for every category, and hence, the home loan interest rate is also different. Below is the table depicting the PMAY interest rate subsidy applicable for various types of beneficiaries:

Beneficiary	Interest Subsidy	Eligible loan amount	Maximum Subsidy
EWS	6.5%	Up to ₹6 lakh	₹2.67 lakh
LIG	6.5%	Up to ₹6 lakh	₹2.67 lakh
MIG I	4%	Up to ₹9 lakh	₹2.35 lakh
MIG II	3%	Up to ₹12 lakhh	₹2.30 lakh

PMAY Home Loan Interest Rates & Charges

Interest Rate
Our home loan interest rates are competitive and affordable, starting from 9.5% per annum. If you’re a first-time homebuyer, you can avail of an interest subsidy of up to 6.5% on our home loans under the PMAY scheme, and this can help you reduce your home loan EMIs significantly.

Processing Fees
We levy a nominal processing fee to manage loan processing, verification, and other administrative services. A minimum processing fee of 1% to 2% of your loan amount, plus GST, is applicable non the sanctioned home loan amount.

Foreclosure Charges
You can pre-close your home loan account with zero foreclosure charges. No foreclosure charges are applicable for Floating Rate Home Loans. For Fixed Rate Home Loans, foreclosure charges as per the loan agreement may apply.

Other Fees and Charges

Valuation charges for BT / Home Equity/ Refinance cases are applicable as per actuals
Loan cancellation or rebooking charges - ₹ 5,000
Cheque bounce charges - ₹ 600 per instance
Penalty for delay in payment – 2.5% of the loan amount per month
Payment instruction swap charge - ₹ 500 per swap

Frequently Asked Questions (FAQs)

1. What is the starting rate of interest for home loans?

With Poonawalla Housing Finance, you can avail of home loans at interest rates starting from 9.5% per annum. If you’re eligible, you can avail of an interest subsidy of up to 6.5% on our home loans under the PMAY scheme.

2. How can I get the lowest home loan interest rate?

You can apply for home loans with Poonawalla Housing Finance to get a competitive home loan interest rate. Moreover, if you have a solid financial profile and a good credit score (750 or higher), you can avail of lower interest rates on our home loan schemes.

3. Can I foreclose my home loan account?

Yes. If you have adequate funds, you can choose to foreclose your home loan account before the end of its tenure. However, before foreclosing your loan account, you must do a cost-benefit analysis to know whether it would be profitable for you or not. Use our online foreclosure calculator when planning such payments.

4. How to calculate my PMAY interest subsidy?

Calculating your PMAY interest subsidy is simple, and you can use our online subsidy PMAY calculator for the same. All you need to do is enter your annual household income, home loan amount, tenure, and carpet area of your house, and your PMAY interest subsidy will be displayed in front of you.