Pradhan Mantri Awas Yojana: Know its Meaning, Eligibility, and Benefits


According to official records, 35 lakh houses under the Pradhan Mantri Awas Yojana Urban scheme have been handed over to beneficiaries as of June 2020. Additionally, 65 lakh affordable houses were still under construction as part of this credit-linked subsidy scheme (CLSS).

  • The government plans to construct and hand over approximately 1.12 crore houses in the urban areas of India by 2022.
  • In comparison, around 1.12 crore houses have been built under the PMAY Gramin scheme.

The Pradhan Mantri Awas Yojana is a credit-linked ‘housing for all’ scheme, which allows Indians from economically challenged backgrounds to obtain homeownership affordably. The Gramin segment under this scheme is designed to assist individuals belonging to the Economically Weaker Section (EWS) or to the Lower Income Group (LIG). PMAY-Urban, on the other hand, enables the Middle Income Groups (MIG-I and MIG-II) to own houses at affordable rates.

Eligibility Criteria for PMAY

Before proceeding to learn more about PM Awas Yojana and following with the application process, one must consider whether he/she is eligible to receive the scheme’s benefits.

1. Family income requirements

Only families with limited income potential are eligible for benefits under the Pradhan Mantri Awas Yojana. Specifically, below are mentioned the household income ranges for the different sections under this CLSS –

  • EWS – Annual income of up to Rs.3 lakh.
  • LIG – Annual household earnings ranging between Rs.3 lakh and Rs.6 lakh.
  • MIG I – Yearly income ranging between Rs.6 lakh and Rs.12 lakh.
  • MIG II – Annual income of the household must range between Rs.12 lakh and Rs.18 lakh.

If one’s family income exceeds Rs.18 lakh per annum, he/she is not eligible to claim the benefits of PMAY.

2. Other eligibility requirements

Among the things you need to know about PMAY, other requirements besides family income are equally essential to meet.

  • A beneficiary or his/her family member should not own a pucca house in any part of India while applying for benefits under the Pradhan Mantri Awas Yojana.
  • The applicant’s family should not have previously availed PMAY-CLSS benefits from any of the primary lending institutions in India.
  • The family in question should not have availed assistance from other housing schemes.
  • For under-construction properties, the work should be completed within 36 months after the disbursal of the first installment of the loan under PMAY.
  • LIG and EWS applicants must also ensure that the sanctioned house is owned/co-owned by a female member of the family. However, if there are no female family members, a male member can own such property solely.

If you are a first-time homebuyer eligible for PMAY, you can expect the following benefits.

Advantages of Pradhan Mantri Awas Yojana

Here are some of the advantages of opting for a PMAY subsidy for first-time homeowners –

1. Substantial subsidy for eligible applicants

The subsidy that individuals can acquire on their home loans depends largely on the economic division they qualify for.

EWS/LIG members can avail of rates subsidized by 6.5% for loan tenures ranging up to 20 years. For MIG-I applicants, this subsidy rate is 4% on a maximum loan principal of Rs.9 lakh. Lastly, MIG II category members can opt for 3% subsidies on loans of up to Rs.12 lakh.

2. Development of affordable housing in rural regions

Apart from delivering affordable residential projects in urban centers across India, Pradhan Mantri Awas Yojana also ensures ample housing opportunities for homeless individuals across rural regions.

3. Female ownership is mandatory under PMAY

One of the clauses to claim PMAY benefits is to ensure that a woman’s family member is either the owner or co-owner of the property in question. It thus empowers women too alongside providing affordable housing.

4. Special allotments for elderly and specially-abled applicants

Elderly applicants of the scheme and those with physical disabilities will receive preference during ground floor housing allotment, thus expanding the scope of PMAY benefits.

  • Under the PMAY-U scheme, the Indian government is looking to invest Rs.70,000 crore into the development of affordable housing projects in 2021.
  • As of 2020, 3.3 lakh families have already benefited from this scheme.

The points listed above reveal some of the key benefits of the Pradhan Mantri Awas Yojana. Still, to claim such benefits, one must comprehend the PMAY registration process as well.

The simplest way to do so is to visit the official PMAY portal online and proceed with step-wise instructions. One must remember to apply for PMAY benefits before acquiring a housing loan, as it would lead to subsidized interest rates on the loan amount. This is a part of decoding the home loan process in India.

Prospective home buyers should look for a reputed housing finance company that provides pre-approved offers as well to ensure simplified and fast loan approvals. These offers are available on home loans, loan against property, among several other financial products. You can check your pre-approved offer by submitting minimum contact details.

The Pradhan Mantri Awas Yojana is thus a convenient option to acquire housing credit at subsidized rates. Once applied, also make sure to know how to check your name in the beneficiary list for seamless access to CLSS benefits.