Pradhan Mantri Awas Yojana

Date: 1-March,2019Last Updated: 28-June,2021
+A   -A

The Pradhan Mantri Awas Yojana is a flagship program of the current Honourable Prime Minister of India, Shri Narendra Modi. Under the PMAY program, a major credit linked subsidy scheme has been offered as an initiative dedicated to first time home buyers, envisioning the ‘Housing for All by 2022’ project of the government.

Pradhan Mantri Awas Yojana - Housing for all

The credit linked subsidy scheme offered to citizens under PMAY is for four Income Groups:

  • Economically Weaker Sections (EWS)
  • Lower Income Groups (LIG)
  • Middle Income Group 1(MIG 1)
  • Middle Income Group 2(MIG 2)


Eligibility Family Income

EWS Rs 0-3 Lakhs

LIG Rs 3-6 Lakhs

Rs 6 Lakhs – 12 Lakhs Rs 12 Lakhs – 18 Lakhs
Carpet Area (sqm) 30 sqm/ 60 sqm 160 200
Max Loan Amount Rs 6 Lakhs Rs 9 Lakhs Rs 12 Lakhs
Interest Subsidy (%) 6.5 4.0 3.0
Max Subsidy (Rs) 2.67 Lakhs 2.35 Lakhs 2.30 Lakhs
Validity of Scheme 31 March 2022 31 March 2020 31 March 2020
Woman Ownership Mandatory Not Mandatory Not Mandatory

The PMAY scheme provides Central assistance to Urban Local Bodies (ULBs) and private development agencies through states through 4 schemes.

  1. Uses land as a resource through private developers to facilitate In-situ Rehabilitation of existing slum dwellers
  2. Credit Linked Subsidy
  3. Affordable Housing in Partnership
  4. Subsidy for beneficiary-led individual house construction/enhancement.

From the above four, the Central Sector Scheme will cover Credit Linked Subsidy component and the other ones will be Centrally Sponsored Schemes.

Features -

  • An upfront benefit of Interest subsidy for the outstanding principal amount
  • The subsidy on interest can be availed for a tenure of 20 years at maximum or tenure opted by the borrower (whichever is lower).
  • There is no cap on the loan amount or on the cost of the property.
  • The Net Present Value (NPV) of the interest subsidy is valued at a discounted rate of 6.5%
  • The additional loan beyond the specified limits, if any will be at a non-subsidized rate.

Eligibility -

This Yojana is focused majorly on First time home buyers but the other schemes that are a part of it also promote upgrading,0 renovation in case of Kaccha to Pucca Homes.

The rule for middle-income groups says, "The beneficiary family should not own a pucca house and the beneficiary family should not have availed of central assistance under any housing scheme from Government of India." A beneficiary family will comprise of husband, wife, unmarried sons and/or unmarried daughters. To avoid duplication, beneficiary family members have to provide their Aadhaar numbers while applying for the loan.
Even if children (married or unmarried) are staying with their parents in a house owned by the parents (or on rent, in the same or another city), they can opt for PMAY provided they are earning and don't own any other home. Also, for a married couple living on rent and even if their parents own a home, they are treated as a separate household. So, if they wish to avail PMAY benefits, they will be eligible for a single house, bought by either of the spouses or both together in joint ownership.

Promoting cooperative federalism, this scheme offers flexibility to the States for choosing the best amongst the four verticals of the mission apt for the demand for housing in respective states. States have autonomy in project formulations and awarding approvals in accordance with the Guidelines so that projects can be formulated, approved and implemented speedily.

Also, as per the under the ‘Housing for All Mission’, a Sub-Mission has been set up to facilitate the adoption of modern, innovative and green technologies and building material for faster and quality construction of houses, preparation and adoption of Layout designs and Building plans apt for various geo-climatic zones which will assist States/Cities in deploying disaster resistant and environmentally friendly technologies and ensuring top quality development.

After falling short of the set target for 2019, the government has proactively promoted new technologies of construction which are set to speed up construction as the target of completion for this project is 2022. Expert’s View

  • The credit linked subsidy scheme is a landmark scheme dedicated to First time home buyers to ensure everyone owns a home.
  • The interest rate offered by this scheme at a record 6.5% compared to the market price of 9% or above is a big money saver.
  • Also, this scheme which was introduced in 2015 and later extended to middle-income groups in 2017 aiming to promote quality and affordable housing for new home buyers.
  • We urge buyers to avail the unique benefits of this program which has already boosted the real estate scenario and continues to boost it further.
  • We at look forward to helping buyers in these perspectives depending on their eligibility.

Did we help ?

Post Response



Latest Blogs

Why Read Real Estate Blogs?

Well, we are aware that real estate has never exactly been one of those binge-worthy blog categories. It has neither been the kind of topic you could not get enough of, nor is it half as juicy as celebrity gossip.

However, in India, real estate blogs are starting to get clicks and likes, and it has become one of the trending topics. People worldwide are beginning to realize how real estate as an industry affects the economy and how important it is to understand housing trends to enhance their lifestyle.!

The relevance of informative Indian blogs on real estate and finance are at an all-time high now. The youngsters are bidding big on investment options, and brackets such as realty have proved to be highly dependable compared to others.

The Millennials are flooding in to invest in apartments, plots, and villas, and the earliest members of the Gen-Zs' entering the workforce and looking forward to having their own homes. This has only fuelled the growth of digital real estate blogs to keep up with the tech-savvy generations.

Also, the real estate sector has been proving time and again, how reliable an investment choice it is. So, learning about the sector is the smart way to climb up the ranks, and where else can you learn so much except from real estate Blogs! Real estate is the second-largest contributor to the country's GDP; hence there is no doubt that it affects every one of us, whether we see a future in the Real Estate Industry or not. After all, we all live in our homes, and housing is a significant part of the industry.

What sets India's favorite Blog Posts apart?

We know exactly what you need to know and what you like. We know you want to feel engaged and entertained, and at the same time, hot housing news should be fed to you! We have turned the tables, grab a spoon, and start digging!

And Voilà! We present to you the most Interesting and Informative blogs!

As our name implies, we are not limited to realty alone, granted we do Specialize in it. We are all about Homes, and we are in love with Tech and Innovation! Naturally, our blogs cover a myriad of topics related to real estate and housing from Luxury, Lifestyle, Home Decor, Vastu, Real Estate News, Reviews, Tech & much more!

We make every one of our real estate blogs as interesting as it can get and attach with absolutely unique and accurate images, to provide you a better understanding. Not only do we cover a wide range of topics, but we also cover them at the right time. We update you on our socials such as Facebook, Instagram, Linkedin, Pinterest, and Twitter on every trending topic, so you are never miss anything and worry about being left behind!

However, we never go out of hand with our Indian real estate blogs that our beloved Readers have come to love over the years.

What is the Importance of Real Estate Blogs?

Everything in India is a state of constant flux; maybe that's why we Indians became one of the most adaptable and cosmopolitan people in the world!

If the nation's elements are shifting its focus, how can real estate be any different? Indian Real Estate Sector is perhaps one of the most dynamic ones in the entire world. Since the Real Estate in India is yet to be organized entirely, the variations in one segment affect another in ways difficult to comprehend.

The complexity and nuances can be understood only by reading about what is going on in the sector. Like we mentioned above, it affects every one of us. Hence it is essential to keep up to date.

With its ever-changing shifts and tides, it's virtually impossible to keep track of the sector's latest trends and sink our anchor deep. That's where we come in! We are just one google search away!

We also try to solve every home-related query through our Indian real estate blogs. And that's not all. We provide you insights on technologies that make the modern taste and rate of development possible, detailed analysis on real estate projects, insights on loans and taxes, advice on the home buying process, and articles on health and fitness. We provide you information about the trending topics in the Indian real estate industry.

We also host video podcasts named Expert's Voices, where we discuss with the leading players in the industry about market scenarios, offers, anything and everything related to real estate.

In addition, we host Real Estate News so you can stay updated on the sporadic events that happen around the country concerning Indian Real Estate. We also make short and easy to understand real estate video blogs.

We have got so many topics to read about that even if you have years of experience or are just curious and googling to get some ideas about Indian real estate blogs, you will find the best ones here.

At, we strive to provide you only the best real estate blogs. Our blogs are always entertaining; even the dullest subject we touch upon, we try to make it engaging. We make sure the best of the best is are the only standard we keep ourselves at when it comes to our service or our Indian real estate blogs.

Our team is made of a dynamic group of keen hands-on expert researchers who work tirelessly along with passionate and knowledgeable content writers to bring to your fingertips the world of real estate.

On every one of our real estate blogs, we research vigorously, write creatively, carefully compile, and thoughtfully curate the best real estate blogs, especially for you, from India's best content writers and contributors.