In this article you’ll learn everything about the Pradhan Mantri Awas Yojana (PMAY) scheme details.
If you are running short of time and want to quickly get an overview of the PMAY housing subsidy scheme, then take a look at the key highlights.
Key highlights of the PMAY scheme:
| Scheme name: | Pradhan Mantri Awas Yojana. |
| Launched by: | Prime Minister of India, Shri. Narendra Damodardas Modi. |
| PMAY scheme launch date: | 25 June 2015 |
| PMAY scheme last date: | 31 December 2024 |
| Scheme status: | Active |
| Scheme mission: | To provide affordable housing built with eco-friendly construction technology to economically weaker, low-income and middle-income group families in urban and rural areas of India. |
| Governed by: | The Ministry of Housing and Urban Affairs, The Government of India. |
| Components of the PMAY scheme: | 1. Pradhan Mantri Awas Yojana Urban (PMAY-U) 2. Pradhan Mantri Awas Yojana Gramin (PMAY-G) |
| Target beneficiaries: | – An individual or families with the annual income of up to Rs. 18 lakhs, and who belongs to the Economically Weaker Section (EWS), or Low Income Groups (LIG), or Middle Income Group 1 (MIG-1) or Middle Income Group 2 (MIG-2). – An individual or families who don’t own a fixed pucca house in any parts of India and falls under any of these income groups: EWS, LIG, MIG-1 or MIG-2. – Scheduled Caste (SC), Scheduled Tribe (ST), senior citizens and people with the physical disabilities that belongs to any of these income categories, EWS, LIG, MIG-1 or MIG-2. – Women applicants, windows, transgenders, women with physical disabilities who meets the PMAY eligibility criteria. |
| Key benefits: | – Get a home loan interest subsidy of up to Rs. 2,67,280 – Get reduced home loan interest rates (3% to 6.5%) for the 20 years of housing loan tenor. – Senior citizens, differently-abled individuals, SC and ST category applicants get a special preference under this scheme. – The PMAY scheme focuses on women empowerment by giving special preference to women applicants, widows, transgenders, and women with disabilities. – Get your first pucca house built with eco-friendly construction methods, with toilet, with water and electricity connections. |
Introduction to the Pradhan Mantri Awas Yojana scheme:
Our respected Prime Minister, Shri. Narendra Damodardas Modi initiated the Pradhan Mantri Awas Yojana in June 2015. The Central Government of India manages this Credit Linked Subsidy Scheme (CLSS). The PMAY scheme’s last date is 31 December 2024.
The PM Awas Yojana scheme aims to build affordable houses using eco-friendly construction methods for the poor people of India who belongs to Economically Weaker Sections (EWS), Lower Income Groups (LIG), Middle-Income Groups (MIG-1), and (MIG-2).
Under this CLSS scheme, the eligible beneficiaries from EWS, LIG, and MIG categories can receive a Home Loan Interest Subsidy of up to Rs. 2,67,280 for their first Pucca home purchase or construction.
If you are planning to buy or construct your first Pucca home, make sure to read first time home buyers’ guide.
Also, use our PMAY Subsidy Calculator to check your Pradhan Mantri Awas Yojana eligibility and find out how much home loan interest subsidy you can get under this housing subsidy scheme.
Components of the PM Awas Yojana:
The PM Awas Yojana is divided in 2 parts based onto the beneficiaries.
- Pradhan Mantri Awas Yojana Urban (PMAY Urban)
- Pradhan Mantri Awas Yojana Gramin (PMAY Gramin)
PMAY Urban (PMAY-U) Scheme – Features and Benefits
- PMAYU scheme was started to help poor urban people in India.
- This scheme provides a subsidized interest rate from 3% to 6.5% per year on the borrowed home loan over a tenor of 20 years to all recipients.
- The PMAY interest subsidy is given to EWS, LIG, MIG-1, and MIG-2 beneficiaries based on their annual family income.
- Eco-friendly construction ways and construction materials will be used to build homes.
- Senior citizens and handicapped beneficiaries are to be given preference while allocating ground floors under the houses built by the Government.
- The scheme is applicable in 4041 towns, with priority being given to Class-I 500 cities.
- This Credit Linked Subsidy Scheme (CLSS) will be implemented in 4041 towns in 3-phases starting from April 2015.
- Applicants will get a home loan interest subsidy of up to Rs.2,67,000.
PMAYU Home Loan Interest Subsidy Offer Details
| Particulars | EWS | LIG | MIG-1 | MIG-2 |
| Annual Household income | Up to 3 lakh | 3 to 6 lakh | 6 to 12 lakh | 12 to 18 lakh |
| Interest rate Subsidy (per year) | 6.50% | 6.50% | 4.00% | 3.00% |
| Eligible Housing Loan Amount to Qualify for PMAY Subsidy (Rs.) | 6 lakh | 6 lakh | 9 lakh | 12 lakh |
| Maximum Home Loan Tenor (in years) | 20 | 20 | 20 | 20 |
| Maximum Eligible House Carpet Area to Qualify for PMAY Subsidy | 30 Sq. M. | 60 Sq. M. | 160 Sq. M. | 200 Sq. M. |
| PMAY Home Loan Interest Subsidy Amount (Rs.) | 2.67 lakh | 2.67 lakh | 2.35 lakh | 2.30 lakh |
Who can apply to Pradhan Mantri Awas Yojana Urban?
- People belonging to the urban poor society of India and slum-dwellers are also included under PMAY Urban scheme, provided they meet certain PMAY eligibility criteria.
- The family of the beneficiary will comprise a husband, wife, unmarried daughters, and unmarried sons.
- The family must not have a pucca home either in the name of the family or any of the family members residing in any part of India.
- People falling under any of the below-mentioned beneficiary categories can apply to PMAY Urban scheme.
| Sr. No. | Beneficiary Income Category | Annual Family Income (Rs.) |
| 1 | Economically Weaker Section (EWS) | Up to 3 lakhs |
| 2 | Lower Income Group (LIG) | 3 to 6 lakhs |
| 3 | Medium Income Group (MIG-1) | 6 to 12 lakhs |
| 4 | Medium Income Group (MIG-2) | 12 to 18 lakhs |
Pradhan Mantri Awas Yojana eligibility criteria
- Only Indian citizens can apply for the PM Awas Yojana scheme.
- Your annual family income should be under Rs.18 lakh.
- Only people falling under the EWS, LIG, and MIG income groups can apply.
- A woman must be the primary applicant or co-applicant in the PM Awas Yojana scheme.
- The applicant will be eligible to buy only a new house under this scheme.
- People already having a home are not eligible to apply for PM Awas Yojana.
- The applicant or any of his/her family members must not have any pucca home in any part of India.
- People belonging to Scheduled Castes or Tribes (SC or ST) are also eligible.
- Under the PM Awas Yojana scheme, applicants who are handicapped or senior citizens will get special priority.
- Your pucca house carpet area should be under 200 sq. meters.
Check your PM Awas Yojana eligibility using the PMAY Subsidy Calculator and know how much home loan interest subsidy you’ll receive.
What are the documents needed to apply PMAYU scheme?
You will need to furnish the following documents to apply for PMAYU. Different documents are required for a salaried person and for a self-employed applicant.
| For Salaried Applicants | |
| Identity Proof – Any one of these | PAN Card |
| Aadhar Card | |
| Voter ID Card | |
| Photo Credit Card | |
| Government Issued Identity Card | |
| Driving License | |
| Address Proof – Any one of the following documents | Passport |
| Aadhaar Card | |
| Voter ID Card | |
| Latest Utility Bills | |
| Rent Agreement on Stamp Paper | |
| Last 3 Months’ Credit Card Statements | |
| Bank Statement | |
| Life Insurance Policy | |
| Copy of Sale Deed of the Property | |
| Property or Municipal Tax Receipt | |
| Post Office Bank Account Statement | |
| Pension or Family Pension Orders (PPOs) | |
| Proof of Income – All of these listed documents | Last 2 Months Salary Slips |
| Bank Account Statement of the Last 6 Months | |
| Latest Income Tax Report (ITR) or Form 16 | |
| Property Documents – All of the documents listed | Copy of an Agreement to Sell |
| Copy of Receipt of Payments that has been made to the Real-Estate Developer | |
| Buyer Agreement/Allotment Letter Copy | |
| Copy of Complete Chain Documents of the Property | |
| Other Documents | Ongoing Loan Documents with 6 Months’ Bank Repayment Statement |
| For Self-Employed Applicants | |
| Identity Proof – Any one of these | PAN Card |
| Aadhar Card | |
| Voter ID Card | |
| Photo Credit Card | |
| Government Issued Identity Card | |
| Driving License | |
| Address Proof – Any one of the following documents | Passport |
| Aadhar Card | |
| Voter ID Card | |
| Latest Utility Bills | |
| Rent Agreement on Stamp Paper | |
| Last 3 Months’ Credit Card Statements | |
| Bank Statement showing the Address | |
| Life Insurance Policy Document | |
| Copy of Sale Deed of the Property | |
| Property or Municipal Tax Receipt | |
| Post Office Bank Account Statement | |
| Pension or Family Pension Orders (PPOs) | |
| Proof of address for Business Entities – Any one of the following documents | Establishment and shops certificate |
| Trade license certificate | |
| SSI registration certificate | |
| PAN Card/VAT registration certificate/ Sales tax | |
| Memorandum of association for companies/Partnership deeds for firms | |
| Factory registration certificate/Export-import code certificate | |
| Registration certificate issued by SEBI | |
| ROC-issued registration number | |
| Proof of Income – All of these listed documents | ITRs of the Last 2 Years |
| Profit and Loss account and Balance Sheet with all Annexure duly certified by a Qualified CA and Audited if applicable | |
| Current Account Statement for the Last 6 Months | |
| Property Documents – All of the documents listed | Copy of an Agreement to Sell |
| Payments Receipts Copies made to the Property Developer | |
| Buyer Agreement/Allotment Letter Copy | |
| Copy of Complete Chain Documents of the Property | |
| Other Documents | Ongoing Loan-related Documents with Re-payment Bank Statements of the Last 6 Months |
| Shareholding Pattern Latest List duly certified by a Recognized CA/CS | |
| For Private Limited Companies – MOA | |
| For Partnership Firms – Partnership Deeds | |
How to apply for Pradhan Mantri Awas Yojana scheme?
Follow the below steps:
- Visit the official website of the Pradhan Mantri Awas Yojana – http://pmaymis.gov.in
- Once on the website, look for the Menu section and search for the ‘Citizen Assessment’.
- You will now need to enter your 12-digit Aadhaar Card number Example – 41XX 49XX 07XX.
- After you have entered your Aadhaar details, the portal will then redirect to the application page.
- On the application page, you will need to enter details such as personal information, income, existing residential address, and your bank account information.
- Choose the ‘I AM AWARE OF’ option at the end of the page and then hit the ‘Save’ button.
- After you click on the ‘Save’ option, a system-generated application number will be showcased that you will be able to save for references in the future.
- You can now download and take a printout of the duly filled application form.
- You will now need to submit the form at a CSC (Common Service Centre) office, along with the banks/ NBFCs/ other financial institutions with needed documents.
How to edit the PMAY application form after submission?
Follow the below steps in case you have made any mistakes while submission.
- Go to the official website of the PMAY – http://pmaymis.gov.in
- Feed your Application Reference Number (ARN) that was provided to you at the time of submitting the original form.
- Enter your 12-digit Aadhaar number.
- Click on the option that says ‘Edit’.
- You can now edit your information in the application form and re-submit it.
How can you get Pradhan Mantri Awas Yojana home loan interest subsidy?
Here is how the PMAY home loan interest subsidy is credited directly to your loan account
- You need to apply for a home loan from any of the listed institutions asking for a subsidy.
- The lending provider will now review your loan application, and if you are found to be eligible, your application will now be sent to the Central Nodal Agency (CNA).
- Post verification, if your application gets approved and there are no discrepancies, whatsoever, the CNA will credit the subsidy amount to your lending institutes loan account.
- The subsidy amount will now be disbursed into your bank account by the lending partner. This way, your total loan amount will get reduced.
- You can now start paying the home loan EMIs against the remaining loan figure.
Pradhan Mantri Gramin Awas Yojana (PMAY Gramin)
The PM Awas Yojana Gramin (PMAYG) was launched to provide housing for all by the year 2022. It is a rural housing development scheme of PMAY that aims to offer a 25 square meter pucca house with other basic amenities in a rural area of India.
Under this scheme, some State Governments can even provide the applicants with financial aid to buy land for landless beneficiaries.
The scheme is a revamped version of the Indira Awas Yojana that was launched in January 1996.
PM Awas Yojana Gramin scheme – Features and Benefits
- An applicant can avail of a home loan of up to Rs.70,000 from banks and other shortlisted financial institutions.
- The interest subsidy of PMAYG is 3%
- The highest principal subsidy amount is Rs.2 lakh for the subsidy.
- For the EMI payable, the maximum subsidy amount availed is Rs.38,359
- The cost incurred for each house is to be shared in the ratio of 60:40 between Central and State Governments in plain areas – Beneficiaries will get up to Rs.1.20 lakh assistance for each house.
- In Himalayan states, UT (Union Territory) of J&K and Northeastern states, the ratio is 90:10 with the financial assistance of up to Rs.1.30 lakh for each house.
- The Center will provide 100% financing for UTs, including Ladakh.
- The assistance of up to Rs.12,000 is provided for the construction of toilets under Swacch Bharat Mission – Gramin (SBM-G) in association with MGNREGS and other schemes.
- The payments are disbursed through an online banking facility i.e. electronically into the bank account/post office accounts linked to Aadhaar.
PM Gramin Awas Yojana (PMAYG) eligibility criteria
- Homeless families – People who don’t have pucca home for their family.
- Families having temporary homes with 0 or 1 or 2 rooms but with Kutcha (temporary) walls and roof.
- Households with an illiterate adult above the age of 25 years.
- Families without a male adult member aged 16 and 59 years.
- Families not having any adult person between the age bracket of 16-59 years.
- Families with differently-abled members.
- A family without any lands or pucca house and earning income from casual labour.
- SC, ST, minorities and other society of India.
List of documents for Pradhan Mantri Gramin Awas Yojana application
- Aadhaar Card
- Consent number for the Aadhaar number to be used on one’s behalf
- An MGNREGA-registered applicant with the job card number
- Swachh Bharat Mission beneficiary member
- Valid bank account details
How to apply for the PMAYG scheme?
- Visit the official website of PMAYG – PMAY Gramin
- Provide details as asked under the personal information section.
- Upload the consent form needed to use the Aadhaar number.
- Find the name of the beneficiary, PMAY ID and priority by clicking on the search button.
- Click on the ‘select to register’ button.
- The details of the beneficiaries will now be displayed post generation.
- The remaining details of the beneficiary, such as the Aadhaar number, relation, ownership type can now be duly filled.
- To use the Aadhaar number on the beneficiary’s behalf, the consent form will now need to be uploaded.
- Add the account details of the beneficiary in the next section, like name and bank account details.
- If you want to avail of a home loan, then select ‘Yes’ and feed the loan figure.
- You will now need to provide the MGNREGA job card number in the next section and your (beneficiary’s) Swachh Bharat Mission number.
- The concerned office will fill the next sections hereon.
From where you can avail of the home loan under the PMAY scheme?
Affordable housing scheme is being supported by financial agencies of different statures in India.
If you are looking to borrow a home loan to fulfil your dream of building or buying your first pucca home, then you have many options to do that.
You can apply for a home loan under the PMAY scheme from Housing Finance Companies, Public Sector Banks, Private Sector Banks, and Regional Rural Banks.
You are now aware of the Pradhan Mantri Awas Yojana Urban (PMAY Urban) and Pradhan Mantri Awas Yojana Gramin (PMAY Rural) schemes and their multiple aspects.
Check your PMAY eligibility using our online PMAY Subsidy Calculator and know how much home loan interest subsidy you can avail of under this scheme.
