Understand the Concept of Pradhan Mantri Awas Yojana


To make ‘housing for all’ a reality by 2020, the National Democratic Alliance (NDA) announced a scheme called Pradhan Mantri Awas Yojana (PMAY) on June 01, 2015. The aim of this scheme is to provide affordable housing solutions for the urban poor people. The programme was initiated for the urban poor people but in 2018, the government also decided to include mid-income groups. The Prime Minister of India, Narendra Modi has also increased the quantum of a loan eligible for interest in urban areas to Rs 12 lakh.


What is Pradhan Mantri Awas Yojana (PMAY)?

Pradhan Mantri Awas Yojana (Urban) was launched on 25th June 2015 providing ‘pucca’ houses to all eligible beneficiaries by 2022. This is a credit-linked subsidy scheme (CLSS) which aims to construct more than 2 crore houses for economically weaker sections (annual income not exceeding Rs 3 lakh), lower-income group (annual income not exceeding Rs 6 lakh) or middle-income group (annual income not exceeding Rs 18 lakh). This scheme has three sections, Pradhan Mantri Awas Yojana (Urban) (PMAY-U) and Pradhan Mantri Awas Yojana (Gramin) and  Pradhan Mantri Awas Yojana- Rare (PMAY-G and PMAY-R), respectively. 

PMAY-U is categorised under three categories namely: EWS (Economically Weaker Sections)/LIG (Low Income Group), CLSS (MIG-I) and CLSS (MIG-II). Thereby, PMAY 2020 is also in demand. 


Salient features of PMAY


  • Up to 6.5 percent interest subsidy is provided to all the beneficiaries taking the loan for a tenure of up to 20 years 
  • However, the interest rate subsidy for all the income slabs is different:-
    • Up to 6 lakh per annum – Credit-linked subsidy of 6.5 per cent will be available for loan amounts up to Rs 6 lakh
    • Up to 12 lakh per annum – If an individual is earning up to Rs 12 lakh per annum he/she will get 4 percent interest subsidy on a loan amount of Rs 9 lakh
    • Up to 18 lakh per annum – If an individual has an income up to Rs 18 lakh annually then he/she will get a 3 percent subsidy on a loan amount of Rs 12 lakh
    • If you go beyond the limit for the loan amount then the loan amount will not be at a subsidised rate. 
  • Construction of houses will be done using sustainable and eco-friendly products and technologies.
  • Senior citizen people and differently-abled people will get a preference for having a house on the ground floor. 


Key beneficiaries under PMAY

  1. Scheduled Castes and Scheduled Tribes
  2. People belonging to the economically weaker section, low-income group and middle-income group
  3. Provisions are also made for widows, transgender, differently-abled individual and senior citizens. 

How to apply for PMAY Scheme

To avail the PMAY Scheme and enjoy subsidies on their home loans under the scheme follow the given steps:-


  • Step 1: Visit the PMAY website 
  • Step 2: Now go to the ‘Citizen Assessment’ tab 
  • Step 3: Click Apply Online
  • Step 4: Now enter your Aadhaar number 
  • Step 5: When Aadhaar is submitted successfully, you will be taken to the application form page 
  • Step 6: In the application form fill all the details, personal, income, bank details and other information asked 
  • Step 7: Now, click on ‘Save’ and you will get a Unique Application Number 
  • Step 8: The next step is where the applicant download the application form 
  • Step 9: Once the form is downloaded, an individual should deposit the application form to the nearest Common Service Centres (CSC) or a bank which offers PMAY scheme. At the CSC submit the application form with all the other necessary documents required. 


People can also avail the scheme offline, all they need to do is approach a financial institution who offers PMAY Scheme. The financial institution will provide the application form and you have to fill the form and submit all the documents. 


List of necessary documents required:-


Salaried Identity proof, address proof, income proof and property documents
Self-employed Address proof for business- trade license certificate, Shops and Establishment Certificate, sales tax, PAN Card or VAT registration certificate, SEBI Registration Certificate, Memorandum of Association, Partnership Deed etc.

Income proof- ITR for the preceding two years, Profit & Loss and Balance Sheet