Pradhan Mantri Awas Yojana

With “Housing for All” by 31st March 2022, the Pradhan Mantri Awas Yojana was launched in June 2015, with an aim to provide affordable housing to the urban people of India.

Pradhan Mantri Awas Yojana or PMAY aims to build 2 crore houses for urban poor including Economically Weaker Sections and Low Income Groups in urban areas by the year 2022. This mission is backed by the central government through the financial assistance of ₹2 trillion.

The PMAY mission has four distinct components namely, In-situ Slum Redevelopment with private sector participation using land as a resource, Affordable Housing through Credit Linked Subsidy, Affordable Housing in Partnership with private and public sector and Beneficiary led house construction/enhancement. The central government will provide assistance in the range of ₹100,000 to ₹230,000 under these components.

What exactly is PMAY?

PMAY or Pradhan Mantri Home Loan Subsidy Scheme is a Credit-Linked Incentive Scheme (CLSS) through which home loans are made available at an interest rate of 6.5% onwards. This loan can be availed for 15 years and can be used for the specific purpose of housing only. This scheme is introduced by the Indian government to uplift the economic growth and for better living of the citizens. The scheme offers flexibility and can be availed by an individual whose household income is less than ₹ 3 lakh to an individual whose total household income is less than ₹ 18 lakhs. According to the income of the people, PMAY scheme has been divided into different categories which have different benefits. Prime Minister, Mr. Narendra Modi with a noble mission launched this scheme with an aim to have 2 crore housing in India by 2022. This scheme can be availed by anyone irrespective of their caste, religion, and creed.

Own Your Dream House with Pradhan Mantri Awas Yojana

Pradhan Mantri Awas Yojana Eligibility Criteria


In order to avail the government PMAY subsidy, an applicant needs to meet the eligibility criteria set by the PMAY committee. For deciding the eligibility criteria applicants have been divided into groups                                                       


Eligibility Details

The Economically Weaker Section (EWS)

Group one contains the Economically Weaker Section (EWS) of the urban population. In EWS group people who earn an annual household income less than ₹3 lakh come under this group.

To claim to be in EWS group one needs to provide relevant proof and documents to the government.

Light Income Group (LIG)                                                        


People having a household income ranging between ₹3 lakh to ₹6 lakh yearly come under this group. Again, to claim the benefits one need to provide relevant proof of their income.

Medium Income Group (MIG1)                                                 

People having an annual household income below ₹12 lakh comes under the MIG1 group.  People who come under this group can avail loans of up to ₹9 lakh for the construction of a residence under this scheme.

Medium Income Group (MIG2)                                        

People having an annual household income ranging from₹12 to ₹18 lakh fall under MIG2 of the PMAY scheme. People who come under this scheme can avail loans of up to ₹12 lakh.


Women who come under EWS/LIG categories can also avail the PMAY with special benefits.


Women who come under EWS/LIG categories can also avail the PMAY with special benefits.

The Key Features of PMAY

The key features of Pradhan Mantri Home Loan Subsidy Scheme can be summarized into the following main points:

  • Home loans to be offered at subsidized rates of 6.5% rate of interest for a tenure of up to 15 years.
  • As a special preference, the senior citizens and the differently-abled people will get houses on the ground floor.
  • Eco-friendly and sustainable technologies to be used for the construction of the houses.
  • The scheme is a three-phase project with the focus of ensuring 4041 statutory towns.

PMAY Subsidies

PMAY Scheme main goal is the upliftment and the betterment of the less privileged sections of the country and to make sure that they receive the maximum benefits. PMAY, to achieve this goal, aims to provide subsidies as below:

  • PMAY offers a Central Grant, of an average amount of ₹100,000, to each PMAY scheme subscriber.
  •    Each PMAY beneficiary will be given a Central Assistance worth ₹150,000 to enhance housing stock.
  • LIG & EWS will be offered a 50 percent subsidy through the CLSS or Credit-linked Subsidy Scheme.
  • The urban poor would be given ₹150,000 for new house and renovation purposes.

Recent Changes Made in The PMAY Scheme

GST on Affordable Homes has been Cut Down to 8%

An individual who is buying a home for the first time under this scheme now have to pay an 8% as the GST charge, provided the buyer opt for a home loan through the Credit-Linked Subsidy Scheme (CLSS) under the PMAY.

The Pradhan Mantri Awas Yojana has provided homes to a large number of people in India. Those people who just dreamed of having their own home, now have their own home with the help of PMAY scheme. To make things better for the imminent homebuyers who are willing to avail benefits under this scheme, the government has sliced the GST from 12% to 8%.

In order to avail a home loan through CLSS, there are some fixed criteria- The applicant yearly household income should not be more than ₹ 18 lakhs and the maximum carpet area eligible to avail this subsidy is 150sqm. Borrowers who are not able to meet this criterion has to pay 12% as GST charge.

How to Avail Benefits Under the Pradhan Mantri Awas Yojana?

The process of applying for this scheme has been kept very simple so that it easily available to those who it intends to benefit. The application process is a very simple process.

Step 1: Apply for a home loan from any Bank or NBFC whoever you find best for your requirement and providing a subsidy.

Step 2: Visit the official website of PMAY and download the subsidy scheme application form.

Step 3: Take a printout of this form and fill up the required details with accurate information.

Step 4: Submit the filled form along with the required documents to an office accepting these in the nearby locations.

Step 5: If you are found to be eligible your application will be forwarded to CNA.

Step 6: If your application gets approved, CNA will send the subsidy amount to the particular lender who has lent you the money.  

Step 7: This subsidy amount will be credited to your home loan account, hence decreasing the total principal amount of your loan.

Application priority is given if the applicant is a woman and sole breadwinner of the family. Along with this senior citizen or differently-abled priority is offered by the government. Development Authorities, Housing Boards and Urban Local Bodies are the agencies in India that support this scheme. PMAY project is also called as the “Housing for All” project.

The successful beneficiaries of this program will directly get their money into their bank accounts through The Direct Benefit Transfer (DBT) program in the form of installments, thus eliminating the need of going to banks and offices for updates and to receive money. You can simply visit the website to check the details of Phase 1 of this program to check in which phase your city is covered.

Who is Eligible for subsidy under PMAY?

The applicant family should get central assistance under the scheme “Housing for all by 2022”.

  • The family net income should be less than ₹1,800,000 per annum. This includes the combined income of husband and wife.
  • The house should be their 1st house.
  • The house should be a new construction
  • Applicants those who have a household income in the range of ₹600,000 to ₹1,200,000 are eligible to get a subsidy of 4% and those who have a household income in the range of ₹600,000 to ₹1,800,000 are eligible to get a subsidy of 3%.

All about Pradhan Mantri Awas Yojana – A Home Loan Subsidy Scheme from GoI

Transgender and widows individuals from the lower salary gatherings society and urban poor, and the Scheduled Castes and Scheduled Tribes might be allowed inclination when they attempt to avail this subsidy plan. Aside from this, it is likewise obligatory that while enrolling for the subsidy, the recipients should essentially say their mom or spouse’s name. As indicated by news reports, these points of interest were uncovered by a Housing and Urban Poverty Alleviation Ministry official before the dispatch of the plan. The plan is one-of-its-kind in India as far as the insurance and advantages that it stretches out to for the neglected part of our society.

(Updated 20-05-2019)