All About The Pradhan Mantri Awas Yojana

The Pradhan Mantri Awas Yojana scheme (PMAY scheme) – Everything you need to know

Our respected Prime Minister, Shri. Narendra Damodardas Modi initiated the Pradhan Mantri Awas Yojana (PMAY) in June 2015. This Credit Linked Subsidy Scheme (CLSS) is managed by the Central Government of India.

The Pradhan Mantri Awas Yojana scheme aims to build affordable houses in selective cities by using eco-friendly construction methods to benefit the citizens of India. This initiative aims to provide affordable housing to India’s poor people by December 2024.  

Under the PMAY scheme, beneficiaries can avail of a Home Loan Interest Subsidy for their first Pucca home purchase or construction.

People from Economically Weaker Sections (EWS), Lower Income Groups (LIG), Middle-Income Groups (MIG-1), and (MIG-2) will be able to avail of this PMAY interest subsidy.

PMAY news update: Our honorable finance minister of India, Nirmala Sitharaman, announced Rs. 80,671 crore in funds allocation for the PM Awas Yojana scheme during her Interim Budget 2024 speech.

PM Awas Yojana is divided into 2 parts

1. Pradhan Mantri Awas Yojana Urban (PMAY Urban)
2. Pradhan Mantri Awas Yojana Gramin (PMAY Gramin)

Let’s explore more about these schemes…

Pradhan Mantri Awas Yojana Urban (PMAY Urban) – Features and Benefits

1. PMAYU scheme was started to help poor urban people in India.
2. 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.
3. The PMAY interest subsidy is given to EWS, LIG, MIG-1, and MIG-2 beneficiaries based on their annual family income.
4. Eco-friendly construction ways and construction materials will be used to build homes.
5. Senior citizens and handicapped beneficiaries are to be given preference while allocating ground floors under the houses built by the Government.
6. The scheme is applicable in 4041 towns, with priority being given to Class-I 500 cities.
7. This Credit Linked Subsidy Scheme (CLSS) will be implemented in 4041 towns in 3-phases starting from April 2015.
8. 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 (PMAY Urban)?

1. 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.
2. The family of the beneficiary will comprise of husband, wife, unmarried daughters and unmarried sons.
3. 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.
4. 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

What is the Pradhan Mantri Awas Yojana eligibility (PMAY eligibility)?

The Central Government will put into practice the Socio-Economic and Caste Census of 2011 to recognize the beneficiaries of the scheme.

Check your PM Awas Yojana eligibility using PMAY Subsidy Calculator and know how much home loan interest subsidy you’ll receive.

Pradhan Mantri Awas Yojana eligibility criteria

1. If your annual family income is between Rs.3 lakh and Rs.18 lakh, then you are eligible to apply.
2. Women Indian citizens can apply for the PMAY. Unless and until an applicant is a woman, no other conditions and demographics will be taken into account.
3. The applicant will be eligible to buy only a new house under this scheme.
4. People already having a home will not be eligible to apply.
5. The applicant or any of his/her family members must not have any pucca home in any part of India.
6. Existing home owners are not applicable for this PM Awas Yojana scheme.
7. People belonging to Scheduled Castes or Tribes (SC or ST) are also eligible.
8. If an applicant is handicapped or a senior citizen, then special priority will be given to them at the ground floor allocation in the houses being built by the Government.

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:

1. Visit the official website of the Pradhan Mantri Awas Yojana – http://pmaymis.gov.in
2. Once on the website, look for the Menu section and search for the ‘Citizen Assessment’.
3. You will now need to enter your 12-digit Aadhaar Card number Example – 41XX 49XX 07XX.
4. After you have entered your Aadhaar details, the portal will then redirect to the application page.
5. On the application page, you will need to enter details such as personal information, income, existing residential address, and your bank account information.
6. Choose the ‘I AM AWARE OF’ option at the end of the page and then hit the ‘Save’ button.
7. 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.
8. You can now download and take a printout of the duly filled application form.
9. 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.

1. Go to the official website of the PMAY – http://pmaymis.gov.in
2. Feed your Application Reference Number (ARN) that was provided to you at the time of submitting the original form.
3. Enter your 12-digit Aadhaar number.
4. Click on the option that says ‘Edit’.
5. 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

1. You need to apply for a home loan from any of the listed institutions asking for a subsidy.
2. 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).
3. 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.
4. The subsidy amount will now be disbursed into your bank account by the lending partner. This way, your total loan amount will get reduced.
5. 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

1. An applicant can avail of a home loan of up to Rs.70,000 from banks and other shortlisted financial institutions.
2. The interest subsidy of PMAYG is 3%
3. The highest principal subsidy amount is Rs.2 lakh for the subsidy.
4. For the EMI payable, the maximum subsidy amount availed is Rs.38,359
5. 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.
6. 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.
7. The Center will provide 100% financing for UTs, including Ladakh.
8. 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.
9. 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

1. Homeless families – People who don’t have pucca home for their family.
2. Families having temporary homes with 0 or 1 or 2 rooms but with Kutcha (temporary) walls and roof.
3. Households with an illiterate adult above the age of 25 years.
4. Families without a male adult member aged 16 and 59 years.
5. Families not having any adult person between the age bracket of 16-59 years.
6. Families with differently-abled members.
7. A family without any lands or pucca house and earning income from casual labour.
8. SC, ST, minorities and other society of India.

List of documents for Pradhan Mantri Gramin Awas Yojana application

1. Aadhaar Card
2. Consent number for the Aadhaar number to be used on one’s behalf
3. An MGNREGA-registered applicant with the job card number
4. Swachh Bharat Mission beneficiary member
5. Valid bank account details

How to apply for the PMAYG scheme?

1. Visit the official website of PMAYG – PMAY Gramin
2. Provide details as asked under the personal information section.
3. Upload the consent form needed to use the Aadhaar number.
4. Find the name of the beneficiary, PMAY ID and priority by clicking on the search button.
5. Click on the ‘select to register’ button.
6. The details of the beneficiaries will now be displayed post generation.
7. The remaining details of the beneficiary, such as the Aadhaar number, relation, ownership type can now be duly filled.
8. To use the Aadhaar number on the beneficiary’s behalf, the consent form will now need to be uploaded.
9. Add the account details of the beneficiary in the next section, like name and bank account details.
10. If you want to avail of a home loan, then select ‘Yes’ and feed the loan figure.
11. You will now need to provide the MGNREGA job card number in the next section and your (beneficiary’s) Swachh Bharat Mission number.
12. 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.