PMAY 1.0 and PMAY 2.0 – Differences you need to know!
kabeer murugkar • March 11, 2025
HomeFirst & PMAY
HomeFirst was one of the strongest promoters of Pradhan Mantri Awas Yojana (PMAY 1.0) when it was first launched. We were the early adopters, and we could channel real effort and dedication towards PMAY and the ‘Housing for All’ mission. More than 38,500 customers across 9 states got the benefits of PMAY of Rs. 966.4 Cr through us which helped them to make their EMIs more affordable & to repay their loans faster. With immense pride and commitment to the nation’s housing progress, we claim expertise in providing this transformative scheme. With PMAY 2.0, we aim to go above and beyond!
PMAY 1.0 vs PMAY 2.0 – Understanding the changes
Objective & Scope
PMAY 1.0 (Launched in 2015): Focused on providing affordable housing for urban and rural populations, targeting Economically Weaker Sections (EWS), Low-Income Groups (LIG), and Middle-Income Groups (MIG) with the goal of ‘Housing for All’ by 2022.
PMAY 2.0: A continuation of the ‘Housing for All’ initiative with key updates to eligibility criteria, subsidy structures and loan parameters ensuring that the scheme adapts to the evolving needs of homebuyers.
Key Differences
| Parameters | PMAY 1.0 | PMAY 2.0 |
| Scheme for loan based subsidy through Financial Institutions | Credit Linked Subsidy Scheme (CLSS) | Interest Subsidy Scheme (ISS) |
| Subsidy Amount | Rs. 2.30 Lakh to Rs. 2.67 Lakh (based on income groups) | Rs. 1.80 Lakh (for all income groups) |
| How you will get your subsidy | One-time subsidy | In 5 yearly tranches, Rs. 36000 per year (subject to your outstanding amount remains above 50% of the loan disbursed) |
| Max Loan Amount Eligible for Subsidy | 6 Lakh to 18 Lakh (based on income groups) | 25 Lakh (for all income groups) |
| Max Property Cost | NA | 35 Lakh (for all income groups) |
| Max Property Area | 60 sqm to 110 sqm (based on income groups | 120 sqm (for all income groups) |
| Annual Income Categories | EWS (Economically Weaker Section): Less than ₹3 lakh
LIG (Low-Income Group): ₹3 lakh to ₹6 lakh MIG-1 (Middle-Income Group 1): ₹6 lakh to ₹9 lakh MIG-2 (Middle-Income Group 2): ₹9 lakh to ₹12 lakh |
EWS (Economically Weaker Section): Less than ₹3 lakh
LIG (Low-Income Group): ₹3 lakh to ₹6 lakh MIG-(Middle-Income Group): ₹6 lakh to ₹9 lakh |
| How will your subsidy affect the home loan | Reduction in EMI | Reduction in EMI OR Tenure as per your choice |
| How will early closure affect your subsidy | No Impact | If the loan is closed in the first 5 years, you cannot get the remaining subsidy. Further, the already provided subsidy will be recovered. |
| Property Eligibility | As per the agreed town list and conditions laid down in the program | ISS subsidy can be availed on one property only once for properties in the published town list |
Additionally, here are a few parameters to keep in mind
- Your home loan should be sanctioned and disbursed after 1st Sept 2024.
- You should be the first home buyer in your family. (family includes husband, wife and their unmarried children)
- A woman family member has to be the complete or partial owner of the property as well as a co-borrower in the loan.
- Your family and the property you are purchasing should not have availed any housing subsidy in the past
- Here’s a simple document checklist that you have to follow for PMAY 2.0
- PAN
- Aadhar (has to be linked to your bank account and mobile for OTP-based verification)
- Any form of Income proof/ITR if available or Income Certificate
PMAY 2.0 isn’t just an extension of PMAY 1.0; it’s a step forward in creating housing that is affordable and inclusive. Homebuyers can now access more benefits tailored to their specific needs.
Why HomeFirst is your best choice for PMAY 2.0
With our successful track record in implementing PMAY 1.0 and assisting over 38,500 customers with subsidies, HomeFirst is well-equipped to help you maximize the benefits of PMAY 2.0 through our streamlined digital processes, ensuring smooth access to subsidies and facilitating easier homeownership.
So if you are someone looking to make the most of PMAY 2.0, HomeFirst is here to help!
