The common belief is that you can not take advantage of the PM Awas Yojana (PMAY) due to your own house, but it is not true. If you have a house and because of the increase in the number of family members, you can also take a loan under PM Awas Yojana for the expansion of the house, in this way you will get a subsidy in interest and you will get the benefit of 2 to 3 lakh rupees. That means you may save money through the scheme.
EWS and L.I.G. Category is covered by the Credit Linked Subsidy Scheme (CLS) for expansion of houses.That means if your annual income is less than Rs.3 lakhs, then you have EWS category and less than Rs.6 lakhs, then LIG category, both categories will be the benefit under the scheme.
If you take a loan under EWS category, you will get a loan of up to Rs 6 lakh for the increase up tp 30 meters of your house, If you take a loan under L.I.G. Category, you will get a loan up to 6 lakh for the increase up to 60 meters of your house. If you borrow more than 6 lakh, the bank will charge the normal interest rate on the loan of more than 6 lakhs.
If you expend the house by taking a loan under this scheme, you will save about Rs 2.75 lakh, according to the scheme, the total subsidy on your interest reduced by Rs 2 lakh 67 thousand from the principal amount. If you make room, kitchen or bathroom then your total expenditure will reduce that amount.
News Source: http://www.punjabkesari.in/business/news/the-benefits-of-the-pmay-will-also-be-available-at-the-old-house–620996