A Broad Outline of the Pradhan Mantri Awas Yojana Program

Pradhan Mantri Awas Yojana Program


The PM Awas Yojana is a central government initiative to provide affordable housing to every citizen by offering interest subsidy on home loans. Read on to learn everything about the housing scheme.

In a bid to help people with financial constraints turn their dream of homeownership into a reality, the central government rolled out an affordable housing scheme in June 2015 known as the PM Awas Yojana (PMAY). The initiative is aimed at providing cost-effective housing, complete with standard amenities for a comfortable living via the Credit-Linked Subsidy Scheme (CLSS). PMAY was originally meant for the lower rungs of society but now covers the middle class as well. Here’s a broad outline of everything about the PMAY subsidy scheme.

Scheme Details & Benefits:

The beneficiaries under the PMAY program are divided into four categories based on the annual income of the household.

  • Economically Weaker Section (EWS) and Lower Income Group (LIG): These categories constitute those with a yearly income not exceeding Rs.3 lakh and Rs.6 lakh respectively. The interest subsidy is applicable to loans for the purchase/construction of a home with a maximum carpet area of 30 Sq. Metres for EWS and 60 Sq. Metres for LIG.
  • Middle Income Groups (MIG-1&2): With a yearly income cap of Rs.6 to 18 lakh, these two segments will be provided with a loan subsidy to acquire or self-construct a home on a carpet area of 120 square meters and 150 square meters respectively. Individuals falling in the MIG -1 slab are eligible for a housing loan of up to Rs.9 lakh at a 4% interest subsidy while those in the MIG-2 segment will get a 3% subsidy on a maximum loan of Rs.12 lakh.
  • Under the PMAY scheme, preference is given to females, ST/ SC/ OBCs, widows, transgender, senior members, and differently able individuals.
  • All eligible beneficiaries are entitled to a maximum loan period of 20 years.

Eligibility Criteria:

In order to access benefits under the PM Awas Yojana, first-time homeowners need to meet certain eligibility conditions. These include the following:

  • It should be the first pucca house of the applicant. Also, no member of the immediate family should own a house in his/her name anywhere across the country. The family unit comprises a husband + wife, along with their unmarried children.
  • Married couples have the option for single or joint ownership but are entitled to a single subsidy.
  • The beneficiary family should not have taken financial assistance form the government of India under any housing-related programs.

Essential Documents: 

To benefit from the Pradhan Mantri Awas Yojana (PMAY) subsidy and complete all the basic formalities, beneficiaries need to submit the following documents to verify their eligibility criterion.

  • Copy of Aadhaar as identity proof
  • Address proof
  • Self -affidavit income certificate
  • Income Proof
  • Caste certificate/Proof of category (SC/ST/OBC/Minority)
  • Property documents
  • Statement of bank accounts for the last six months
  • Latest IT return

Steps to Avail PMAY Subsidy:

The process of applying for the PMAY scheme is straightforward, involving a few simple steps.

  • Check your eligibility status
  • Visit the nearest participating bank or Non-Banking Financial Company (NBFC).
  • Select a lender.
  • Download the subsidy scheme application form from the official website of PMAY.
  • Furnish all the essential details accurately and submit them for verification.
  • On approval, the housing loan amount will get automatically disbursed to your bank account.
  • The lender will subsequently contact the nodal agencies to claim interest subsidy on your behalf from the government.
  • Once the lender receives the subsidy, it will be credited into your home loan account, and your Equated Monthly Instalments (EMIs) will drop from thereon.

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