Pradhan Mantri Awas Yojna

Affordable home is everyone’s dream. Most importantly, it is a basic necessity for a human being just like food and medical care. Therefore, it becomes a responsibility of the administrative bodies to help those for whom housing finance is not an easily accessible facility. Pradhan Mantri Awas Yojna is one such step of the current government in which it has set a target for itself to construct 20 million urban houses by the end of the financial year 2021-22.

Also popular as ‘Housing for all 2022 scheme’ this scheme is working in two groups

PMAY-U – Pradhan Mantri Awas Yojna – Urban for housing development in urban areas.

PMAY-R – Pradhan Mantri Awaz Yojna – Rural, for housing development in rural areas.

The objectives of the scheme

  • The main objective is to provide affordable houses to people both in urban and rural areas.
  • To provide a sense of security to the women as the houses under this scheme are supposed to be in the name of the woman of the household. She can be either the applicant’s mother or wife.
  • As the home loan is not affordable for all income groups, this scheme is like a major support to all those people.
  • It is an unbiased scheme with no specification of a particular caste, religion or ethnicity to avail its benefits. You are only required to be the citizen of India.
  • The focus is primarily on the ignored sections such as low-income groups, transgender, widow, and scheduled caste and scheduled tribes.

The main beneficiaries of this scheme

  • Women
  • Scheduled Caste
  • Scheduled tribe
  • Medium income group 1
  • Medium income group 2
  • Economically weaker section
  • Low-income groups

The best thing about this scheme

This scheme has combined many other schemes of the current ruling government and therefore, can provide a full-fledged house to the public. Schemes such as;

  • Clean India Mission- Through this scheme, it is made sure that every house constructed under this scheme has a toilet.
  • Saubhagya Yojna- This scheme ensures every house has the electricity connection.
  • Ujjwala Yojna- It is ensured that every house constructed under this scheme has LPG gas connection.
  • Eco-friendly houses- The houses that will be constructed under this scheme make use of sustainable resources.
  • Preferences- Special preference to differently-abled and old age people.

How a common man is benefitted

Through this scheme, the government provides a subsidy on the rate of interest of up to 6.5% through credit linked saving scheme for the period of up to 20 years.

The entire detail about the benefit is provided below in a crisped form.

Particular MIG I MIG II
Annual Income(of the entire household) 6 to 12 lakh 12 to 18 lakh
Subsidy on interest 4% 3%
Loan Tenure 20 years 20 years
Minimum carpet area(square feet) 90 110
Discount rate for NPV 9% 9%

MIG stands for Medium Income Group

Eligibility for Pradhan Mantri Awas Yojna

  • As mentioned above, any household with an annual income between 6 to 18 lakh can apply for this benefit.
  • The Applicant must be a citizen of India.
  • The applicant or his/her family member must not own any dwelling.

Things to keep in mind

  • PMAY is only for the construction or buying of the new house only and not for the resale property.
  • The house should be in the name of the woman of the household.
  • If both the spouses are earning still they cannot apply separately for this scheme.
  • Only one member from a household can avail this benefit.
  • Always choose the listed lending agency for the home loan to avail the benefit of this scheme.

The procedure of Pradhan Mantri Awas Yojna

  1. Visit the official website of PMAY
  2. Next, go to the ‘Citizen Assessment’ section from the menu option.
  3. Enter your Adhaar number which will redirect you to the application page.
  4. Fill the form by putting your personal details such as name, address, date of birth and bank details.
  5. After the completion of the form filling, click on ‘I am aware of’.
  6. Then click on the ‘Save’ button.
  7. Once you click on ‘Save’, your application number will be generated.
  8. Save that number for future reference.
  9. At last, print the application so generated.
  10. Submit the same to your nearest CSC office centers and the bank/NBFC of your choice along with other documents.


How to get the interest rate subsidy under PMAY scheme

  1. First of all, submit your application to the listed lending agency
  2. Then the bank or NBFC will check your eligibility.
  3. If the lending agency founds you eligible for the subsidy, it will send it to the Central Nodal Agency.
  4. Next, the CNA will do the due verification of the documents.
  5. If everything goes well the Central Nodal Agency provides its approval for the subsidy.
  6. Then it credits the subsidy amount into the loan account of the applicant.
  7. After that, the applicant only has to pay the EMI for the outstanding amount.

What to expect from BankHelpline?

BankHelpline has partnered with all the top-class lending institutions along with those listed in Pradhan Mantri Awas Yojna. Compare on our website to choose the best available option.

If you still have any query related to this scheme feel free to contact.


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