As per the recent survey India is going through a drastic shifting change. People because of the growing opportunities are shifting from rural areas to the urban areas. A lower class man shifts to a bigger town or city to earn his livelihood, educated and professionals shift to metros for more career opportunities and so do students  for higher studies and generally end up settling outside. All these reasons have led to a phenomenal increase in the population of urban areas in last few years,so much so that the urban population is about to reach approx. population of 814 million by the end of 2050. This is the double of the present numbers. But this population growth has also increased the demand for a home to live in, with proper sanitation. Because of the lack of proper housing facilities and because of their low financial standard a large part of people are compelled to live in slums. This high demand has led to the growth of the real estate industry along with a soar in their prices. To solve this situation our honourable prime minister Mr. Narendra Modi launched one scheme ‘ Pradhan Mantri Awas Yojana’ on 25th June 2015 . The goal is to provide “Housing for all by 2022”.

While launching PMAY our Prime Minister said- “The country’s 40 per cent population lives in cities and it is the responsibility of the government to uplift their standards of living. We cannot leave them to their fate…The housing for all scheme will ensure every urban poor is enabled to own a house. AMRUT will ensure basic infrastructure and sanitation is in place in cities.”

Pradhan Mantri Awas Yojna Scheme

“Under this scheme there comes ‘credit linked subsidy scheme’ according to this every house constructed, improved, build, purchased or even expanded will be given an interest subsidy”

As indicated by the terms of the Pradhan Mantri Awas Yojana, the administration of India will build and develop around two crore houses by the year 2022. Each house under this plan will be given about INR 1 lakh which may go up to INR 2.3 lakhs. This will come as a component of a 6.5 percent loan interest rate subsidy scheme (past plans had interest rate of around 1 percent). This implies the person from low salary bunches can get benefit from this housing plan and may apply for a housing credit and get a subsidy interest rate of 6.5 percent. The maximum tenor for this housing loan is of 15 years and the aggregate advantage got by such advance sponsorship will indicate INR 1 to 2.3 lakh each. Right now home loan costs are evaluated at 10.5 percent in India. The appropriation should subsequently be a noteworthy help to many people.

House Loan


Who are Eligible for PMAY?

  • The applicant family should get central assistance under the scheme “Housing for all by 2022”.
  • The family net income should be between 6 to 18 lakhs per year. This includes the combined income of husband and wife.
  • The house should be their 1st house.
  • The house should be a new construction
  • Person having a household income of from 6 lakhs to 12 lakhs will get subsidy of 4% and a person having a household income from 6 lakhs to 18 lakhs will get a subsidy of 3%.

Let’s take an example of a person earning 7 lakhs p.a.

Example A B C
Loan amount 6 lakhs 9 lakhs 12 lakhs.
Loan amount eligible for subsidy 6 lakhs 9 lakhs 9 lakhs
Interest subsidy INR 1,56,721 INR2,35,068 INR2,35,068
Normal EMI without Subsidy INR 5,207 INR 7,810 INR 10,414
Reduced EMI  after Subsidy INR 3,847 INR 5,770 INR 8,374
Savings per year INR 17,976 INR 23,968 INR 23,968

How to avail PMAY subsidy?

  1. Apply for home loan from any Bank or NBFC whoever you find best for your requirement and providing subsidy.
  2. Meanwhile if you found to be eligible your application will be forwarded to CNA.
  3. If your application got approved, CAN will send the subsidy amount to the particular lender who have lend you the money.  
  1. This subsidy amount will be credited to your record, hence decreasing the total principal amount of your loan.
  1. For example, if your yearly pay is INR 7 lakh and the credit sum is INR 9 lakh, the subsidy you will get will be 2.35 lakh.

While the Pradhan Mantri Awas Yojana is clear about its objectives – reasonable Housing for all by 2022, it ensures that the advantages of the plan are delighted in by ladies (availed by women), financially weaker section and the Scheduled Castes and Scheduled Tribes. Similarly 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 these seniors and disabled will be able to gain special preferences. They might likewise have the capacity to pick a ground-floor house if require be. 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, for example, transgender and widows.

Owning a house is everyone’s dream and if you are one of them and planning to purchase or construct your dream house. Avail Pradhan Mantri Awas YoJana and turn your dream into reality.