It's a little tricky, please approach the bank in which you have an account. I'll just give you an outline.
The Pradhan Manti Awas Yojan, PMAY-HFA scheme, is a housing for all by 2022 scheme.
If the entire households, income is less 3.01-6 L/annum, then you fall into the Low Income Group. Here it is mandatory for the house owner to be a female, first-time applicant and have no permanent house(pucca property).
In your case, the maximum subsidy is 2.67 L, interest rate 6.5% and a loan duration of 20 years on a loan amout of 6L.
The interest subsidy is credited upfront to the borrowers.
For you to get the maximum subsidy, you will have to take a loan of 6 L (provided that you satisfy all the eligibility criteria under the LIG-PMAY scheme).
A. Rs6L- Loan amount, duration 20 years, Interest rate:9%, the EMI is around 5398. In 20 years Rs12.95L is what would be the total paid of which the interest comes to 6.95L
Now if we apply the scheme interest difference 9% vs 6.5, the interest subsidy comes to 2.67L. This is deducted from the loan amount.
B.Once PMAY-HFA is awarded to you,
Your loan amount becomes Rs 3.33 Lakhs (6-2.67) on which you would be paying a 9% interest (because the subsidy has already been paid to you). So here, the EMI comes to 2996/month for 20 years. Now you are paying Rs 7,19,040 in total of which the interest component becomes 3,86,040
So, with the scheme, you have a lesser interest burden and a lesser EMI. Please verify your eligibility and understand the scheme better from an authorised bank for the PMAY.