Now Buy A Home Easily With Pradhan Mantri Awas Yojana



The Pradhan Mantri Awas Yojana (PMAY) is a flagship government housing scheme introduced in 2015 by the Prime Minister of India. This Pradhan Mantri Yojana aims to provide affordable housing solutions to those who do not own a permanent house.

India is home to the largest homeless and slum-dwelling population in the world. Together, these two groups constitute nearly 8 Crore people, which is more than the total population of several countries. 1 out of every 5 slum-dwellers in the world is from India.

Tackling homelessness requires grassroots level government involvement and funding, both of which are being provided by the Pradhan Mantri Awas Yojana.

PMAY- Housing For All In The Making

Despite the massive demand and requirement of real estate in India, it remains one of the most unaffordable commodities for a sizable chunk of the population. The PMAY was launched to address this issue and provide affordable housing solutions for everyone.

A total of 2 Crore houses are to be constructed under the PMAY scheme by FY22. The government has allocated Rs. 2 Lakh Crore for this project. There are four groups that fulfill the PMAY eligibility and can avail the benefits of this scheme- EWS, LIG, MIG I and MIG II. The income caps for these groups are fixed at Rs. 3 Lakh, Rs. 6 Lakh, Rs. 12 Lakh and Rs. 18 Lakh respectively.

Key Features of PMAY

  • It is a Credit-Linked Subsidy Scheme (CLSS) which means that when you avail a housing loan in India under this scheme, the interest repayment will be subsidized by the government. The maximum subsidy one can avail under this scheme is Rs. 2.67 Lakh.
  • Individuals can avail home loan interest rates below 7% under this scheme. It is one of the primary ways of getting better home loan interest rates. For example, Bajaj Finserv offers home loans at an interest rate of 6.93% under the PMAY scheme along with multiple additional borrower-friendly features such as property dossier services, no-charge part prepayment or foreclosure, etc.
  • The maximum tenor one can opt for is 15 years.
  • Applicants in the EWS and LIG groups can obtain a Pradhan Mantri Awas Yojana loan of up to Rs. 6 Lakh.
  • The property should be within 30 sq.mt for the EWS category and 60 sq.mt for LIG category. They are also eligible for a 6.5% subsidy on interest repayment.
  • For the MIG I group, the corresponding loan amount is Rs. 9 Lakh and the subsidy is 4%.
  • MIG II group can avail a home loan as high as Rs. 12 Lakh and avail 3% subsidy on interest repayment.
  • This scheme is linked with other government programmes like Swacch Bharat, Ayushman Bharat, and Nirmal Bharat Abhiyaan.
  • Only sustainable and eco-friendly technology is used in the construction of houses under this scheme.
  • The entire project will be spread out in 3 phases over 7 years and cover 4041 statutory towns and cities.
  • Elderly and disabled people are given preference for the allotment of ground floors.
  • In-situ redevelopment of slum areas will be undertaken in partnership with the private sector.
  • The application process is entirely online. You have to log in to the official website of PMAY and provide necessary details to avail the benefits of this scheme.
The PMAY is a landmark project which can potentially eradicate the problem of homelessness from India. Affordable housing is all set to be a new reality thanks to this scheme.

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