What Is the Pradhan Mantri Awas Yojana Scheme (PMAY) and How Can I Apply?

What Is the Pradhan Mantri Awas Yojana Scheme (PMAY) and How Can I Apply?

Details About Pradhan Mantri Awas Yojana

  • The Honorable. Prime Minister Sri Narendra Modi introduced the  Pradhan Mantri Awas Yojana Scheme (PMAY) on June 25, 2015. Between 2015 and 2022, it plans to build roughly 2 crore homes throughout the nation.
  •  It aims to support a respectable and sanitary lifestyle for the country’s underprivileged population.
  • By 2022, “Housing for All”(HFA) was to be a reality. 
  • Credit Linked Subsidy Scheme (CLSS), a program designed to give interest subsidies on loans taken out for the purchase, building, expansion, or improvement of a home, was introduced as part of this aim. 

What is a Credit Linked Subsidy Scheme (CLSS)?

  • The PMAY Program offers the Credit Linked Subsidy Scheme (CLSS), which enables members of the Economically Weaker Section (EWS), Low Income Group (LIG), and Medium Income Group (MIG) to get EMIs for house loans reduced thanks to an interest subsidy.
  • The beneficiary will receive an upfront credit for the interest subsidy on the principal amount, which would lower the effective home loan and EMI.
  • The Credit Linked Subsidy Scheme (CLSS) under PMAY makes the mortgage affordable by providing a subsidy on the interest component, which lowers the customer’s outflow on the mortgage. 
  • The size of the property unit being financed and the customer’s income category are the two main factors that affect the subsidy amount under the scheme.

PM Awas Yojana is Split Into Two Sections

  • Pradhan Mantri Awas Yojana Gramin (PMAY Gramin)
  • Pradhan Mantri Awas Yojana Urban (PMAY Urban)

Pradhan Mantri Awas Yojana Gramin (PMAY Gramin)

  • Housing for everyone is a goal of the Pradhan Mantri Awas Yojana Gramin (PMAY Gramin), which was started in 2012.
  • A 25-square-meter pucca house with other essential amenities is what this PMAY program for rural housing construction in India strives to provide.
  • Some State Governments may even offer the applicants financial assistance to purchase land for beneficiaries who are landless under the PMAY Gramin plan.
  • The Indira Awas Yojana, which was introduced in January 1996, has been updated as part of the current program.
  • The minimum size of the homes that must be constructed under the PMAY-G scheme has currently been increased from 20 sq. mt. to 25 sq. mt.

PMAYG Subsidy Scheme

  • Beneficiaries of the program are eligible to borrow up to Rs. 70,000 from financial institutions.
  • Interest is subsidized by 3%.
  • The subsidy’s maximum principle amount is Rs. 2 lakh.
  • The most that can be subsidized for the monthly installment is Rs.38,359

Pradhan Mantri Awas Yojana Urban (PMAY Urban)

  • The PMAY Urban program was established to aid India’s urban poor.
  • The PMAY program offers all beneficiaries a housing loan with an annual interest rate subsidy ranging from 3 to 6.5 percent over a 20-year term.
  • EWS, LIG, MIG-1, and MIG-2 participants receive the PMAY interest subsidy according to their annual household income.
  • Homes will be constructed using environmentally friendly building techniques and materials.
  • When assigning ground floors under the houses erected by the government, senior residents and individuals with disabilities must be given preference.
  • The program is accessible to 4041 towns, with Class-I 500 cities receiving precedence.

The system is designed to Run in Three Stages:

  • Phase 1:  From April 2015 to March 2017, the government planned to cover 100 cities in various states and UTs as part of Phase 1.
  • Phase 2: From April 2017 to March 2019, the government aimed to cover 200 additional cities in various states and UTs around the nation under Phase 2.
  • Phase 3: By the end of March 2022, the government hopes to have completed Phase 3 and covered all the cities that were unaffected by Phases 1 and 2.

Pradhan Mantri Awas Yojana Eligibility

  • You may apply for PMAY if your yearly household income is between Rs. 3 lakh and Rs. 18 lakh.
  • For the PMAY, female Indian citizens may apply. No other conditions and demographics will be taken into consideration until and until an applicant is a woman.
  • Only new homes will be available for the applicant to purchase under this program.
  • People who already own a home are not eligible to enroll in the PMAY program.
  • The applicant must not own a pucca home in any region of India, nor may any member of their family.
  • An applicant will not be permitted to use the PMAY incentives on a residence that is already built.
  • People belonging to Scheduled Castes or Tribes (SC or ST) are also eligible.
  • If an applicant is handicapped or a senior citizen, then special priority will be given to them at the ground floor allocation in the houses being built by the Government.
  • The four categories defined under this schema are

                                           Economically Weaker Sections(EWS)

                                           Lower Income Group (LIG)

                                           Middle Income Group (MIG) – I

                                           Middle Income Group (MIG) – II

PMAY(2022) Schema Details







PMAY Criteria(Annual Household income)

Up to 3 Lakh

3 to 6 Lakh

6 to 12 lakh

12 to 18 Lakh

Interest Subsidy (per year)





Maximum Home Loan Amount (RS)

6 Lakh

6 Lakh

9 Lakh

12 Lakh

Maximum Interest Subsidy Amount

2.67 Lakh

2.67 Lakh

2.35 Lakh

2.30 Lakh

PMAY Carpet Area (Max)

30 Sq. M.<