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PMAY vs Regular Home Loan Calculator 2025

Compare Pradhan Mantri Awas Yojana subsidy loan with regular home loan to see your exact savings

Your Details

₹20.0L
20 years
₹6.0L
8.3%
60 sq m
₹28.0L

Eligible for PMAY - LIG (Low Income Group)

Maximum Subsidy: ₹1.80L

PMAY Loan

Pradhan Mantri Awas Yojana 2.0

Monthly EMI

₹15,833

Total Interest

₹19,41,783

Subsidy Benefit (NPV)

₹1,41,863

Effective Principal

₹18,58,137

Total Amount Paid

₹37,99,920

Regular Loan

Regular Home Loan

Monthly EMI

₹17,041

Total Interest

₹20,89,840

Total Amount Paid

₹40,89,840

Principal

₹20,00,000

Your Savings with PMAY

Monthly EMI Savings
₹1,208
Total Interest Savings
₹1,48,057
Subsidy Benefit
₹1,41,863
Total Savings
₹2,89,920

Our Recommendation: PMAY Loan

  • Save ₹2.5L+ with PMAY subsidy
  • Lower monthly EMI for first 12 years
  • Government-backed guarantee
  • Principal reduced by ₹1.50L upfront

PMAY Loan

Effective Principal₹18,58,137
Total Amount Paid₹37,99,920
Total Interest₹19,41,783
Effective Rate5.23%

Monthly EMI

Your Payment:₹15,833

Regular Loan

Principal₹20,00,000
Total Amount Paid₹40,89,840
Total Interest₹20,89,840
Interest Rate8.25%

Monthly EMI

Your Payment:₹17,041

Maximum Savings Strategy

To maximize PMAY savings: Keep loan ≤₹8L for 100% subsidized amount, choose 15-20 year tenure, ensure income ≤₹9L, and stay within carpet area limits.

₹8L loan with PMAY saves ₹3.2L in interest vs regular loan (39% less interest paid!)

When PMAY Doesn't Make Sense

PMAY may NOT be worth it if: Income >₹9L (not eligible), loan >₹25L (exceeds limit), carpet area exceeds limits, already own a house, or need urgent funding.

For loans >₹25L, consider regular loan with lower interest rate negotiation or larger down payment.

Income Threshold Optimization

If salary is ₹9.2L (just above limit), optimize by showing only regular monthly salary × 12, excluding bonuses and variable income. Apply when income is ₹8.9L, before next increment.

Gross ₹9.5L - Deductions ₹1L - Variable ₹1L = Report ₹7.5L (salary only) → Eligible!

Carpet Area Optimization

Carpet area limits: EWS 30 sq m, LIG 60 sq m, MIG 120 sq m. Carpet area = 70-75% of super built-up. A 900 sq ft apartment = ~650 sq ft carpet = 60 sq m (fits LIG!).

Choose 850 sq ft flat (59 sq m carpet) over 950 sq ft (65 sq m) if it saves ₹1.5L subsidy!

Detailed Comparison: PMAY vs Regular Loan

PMAY Loan
Regular Loan
Interest Rate
4% subsidy on ₹8L for 12 years (Effective: 4.25% years 1-12, 8.25% years 13+)
8.25% throughout tenure
Eligibility
EWS/LIG/MIG (income ≤₹9L), First-time buyer, No existing property
Anyone with income proof, Any home buyer, Can own property
Loan Limit
Max ₹25 lakh
No limit (₹5L - ₹10Cr+)
Property Value
Max ₹35 lakh
No limit
Carpet Area
Max 120 sq meters (MIG), 60 sq m (LIG), 30 sq m (EWS)
No restriction
Subsidy
₹1.80L (NPV ₹1.50L), 5 yearly installments, Credited to loan account
None
Processing
30-45 days (govt verification), Geo-tagging required, SECC database check
7-15 days, Standard bank process
Prepayment
Allowed after 5 years (Subsidy installments stop if prepaid fully)
Allowed after 6 months, Usually no penalty

Frequently Asked Questions

What is the real benefit of PMAY 2.0 vs regular loan?
PMAY 2.0 gives you ₹1.50L subsidy (present value) credited to your loan account over 5 years, reducing your principal effectively. Real Example: - Loan: ₹25L, Tenure: 20 years, Rate: 8.25% - Regular EMI: ₹36,767/month - PMAY EMI: ₹35,456/month (after subsidy credit) - Monthly Savings: ₹1,311 - Total Savings: ₹2.85L (subsidy + interest savings) Winner: PMAY saves ₹2.85L if eligible
Can I get PMAY subsidy if my income is ₹10L/year?
NO. PMAY 2.0 has strict income limits: - EWS: Up to ₹3L - LIG: ₹3L-₹6L - MIG: ₹6L-₹9L If your annual household income exceeds ₹9L, you are NOT eligible. Alternative: - Regular home loan has no income ceiling - You can still claim ₹3.5L tax deduction (80C + 24b) - If first-time buyer: Extra ₹1.5L under 80EEA
What if my loan amount is ₹30L but I'm eligible for PMAY?
You get PARTIAL benefit: - PMAY subsidy applies only on first ₹8L - Maximum subsidy: ₹1.50L (NPV) - Remaining ₹22L at regular rate Calculation: - Regular loan ₹30L @ 8.25%: EMI = ₹44,120 - PMAY ₹30L (subsidy on ₹8L): EMI = ₹42,547 - Savings: ₹1,573/month (₹3.77L over 20 years) Verdict: Still worth taking PMAY if eligible!
How is PMAY subsidy disbursed?
PMAY 2.0 (from Sept 2024): - Total subsidy: ₹1.80L - Disbursement: 5 equal yearly installments of ₹36,000 - Credited directly to your home loan account - Reduces your outstanding principal Requirements: - Loan must be active - >50% principal outstanding when installment due - Property geo-tagged and verified Example: If your loan starts Jan 2025: - Jan 2026: ₹36K credit - Jan 2027: ₹36K credit - Jan 2028: ₹36K credit - Jan 2029: ₹36K credit - Jan 2030: ₹36K credit IMPORTANT: If you prepay fully before 5 years, remaining installments are forfeited.
Should I take PMAY or regular loan for faster processing?
PMAY processing time: 30-45 days - Bank loan approval: 15-20 days - PMAY verification: 15-25 days (SECC database, geo-tagging) - Subsidy credit: After loan disbursement Regular loan processing: 7-15 days - Faster approval (no govt verification) - Immediate disbursement Recommendation: ✅ Choose PMAY if: You can wait 30-45 days and save ₹2.85L ✅ Choose Regular if: Need urgent funding (possession deadline, auction property) Pro tip: Start PMAY paperwork 2 months before needed. Even if you're "in a hurry," ₹2.85L savings is worth 30 extra days!

PMAY Subsidy Calculator

Calculate your PMAY 2.0 subsidy amount and check eligibility

Calculate PMAY Subsidy
PMAY vs Regular Loan Calculator 2025 | Save ₹2.85L | YojanaCalc