Things You Should Know About PMAY

Pradhan Mantri Awas Yojana (PMAY) is a housing scheme launched by the government in order to help citizens living in urban areas buy or construct a house. The scheme was launched in 2015 with the aim of providing affordable housing to all eligible beneficiaries by 2022.

If you are planning to buy a house, then read this article to understand how PMAY can help you.

Not many can afford to buy a house from savings alone. Furthermore, due to the exorbitant costs of homes, people living in cities can find it extremely difficult to finance a house purchase. Therefore, in order to provide financial help to home buyers, the government announced Pradhan Mantri Awas Yojana.

Under this scheme, eligible beneficiaries can avail interest subsidy benefit on the home loan amount. The interest subsidy is processed via two central nodal agencies- Housing and Urban Development Corporation (HUDCO) and National Housing Bank (NHB). These bodies channelize interest subsidy to the banks. Then the banks assist beneficiaries to avail interest subsidy.

Eligibility Criteria of the PMAY

The government has classified PMAY applicants in various categories. The benefit depends on which category the applicant belongs to.

Category Annual Household Income Interest Subsidy Maximum Loan Tenure Maximum Carpet Area
Economically Weaker Section (EWS) Below Rs. 3 Lakhs 6.5% 20 years 60 Sq. Mt.
Low Income Group (LIG) Between Rs. 3 Lakhs and Rs. 6 Lakhs 6.5% 20 years 60 Sq. Mt.
Middle Income Group I (MIG I) Between Rs. 6 Lakhs and Rs. 12 Lakhs 4% 20 years 160 Sq. Mt.
Middle Income Group II (MIG II) Between Rs. 12 Lakhs and Rs. 18 Lakhs 3% 20 years 200 Sq. Mt.

In order to avail the benefit under this scheme, an applicant must meet a few eligibility prerequisites such as-

  • An applicant or any of his/her family members shouldn’t own a pucca house in the country.
  • An applicant or any of his/her family members shouldn’t have availed financial assistance under any of the government’s housing initiatives.
  • Female ownership or co-ownership is necessary.
  • In case of a married couple, the applicants are allowed to apply for joint ownership. However, the couple will receive only one subsidy.

Furthermore, with the help of a PMAY calculator, you can find out the subsidy amount you will be eligible for.

How to Apply for the PMAY?

  • Visit the website of the PMAY. (
  • Click on the ‘Citizen Assessment’ tab on the website.
  • Select which group you belong to. If your annual income is above Rs. 3 Lakhs, then select the ‘Benefit Under Other 3 Components’ option. If your annual income is below Rs. 3 Lakhs, then select the ‘For Slum Dwellers’ option.
  • Then enter your Aadhaar card number. After entering the number, you will be redirected to the application page.
  • Enter your personal details, income information, residential address, bank account information, etc.
  • Once you fill the application, click on the ‘I am aware’ option. Then click the ‘Save’ button.
  • You will receive a system-generated application number, and you must save this number. Then print the application form.
  • Finally, submit the application form at the nearest CSC office along with the necessary documents.