The urban population of our country is expected to cross the mark of 814 million people by the year 2050. Anticipating this phenomenal growth in population and the demand it will create for housing in urban areas, the Government of India has envisioned PRADHAN MANTRI AWAS YOJANA (PMAY 2018)under the ambit of Ministry of Housing and Urban Poverty Alleviation.
What is Pradhan Mantri Awas Yojana scheme – Meaning?
Pradhan Mantri Awas Yojana scheme is a program initiated by the government of India in 2015 with the objective of affordable housing for everyone by the year 2022. In addition, the Pradhan Mantri Awas Yojana scheme also ensures that the benefits of the scheme are also enjoyed by
- Scheduled castes
- Scheduled tribes
- Members of lower income group
- Urban poor
It is probably for the first time that a government housing scheme has given preference to marginalized groups not just on the basis of caste, but also on the basis of economic status.
It has four components through which it aims to achieve the objective of housing for all by 2022.
- Slum Rehabilitation By With Participation Private Players Using Land As A Resource
- Affordable Housing For Weaker Section By Credit Linked Subsidy
- Subsidy For Beneficiary Led Housing Construction/ Enhancement
- Affordable Housing In Participation With Public And Private Sector
What is CLSS scheme? Does it come under PMAY?
CLSS refers to Credit Linked Subsidy Scheme. As discussed in the previous paragraph, it is one of the four components of PMAY. So, yes it does come under PMAY.
Also Read- GST on CLSS Scheme
The aim of CLSS is to provide easy and improved lending options to the urban poor and middle income groups in order to purchase/construct house. Basically, a credit linked subsidy is to be provided for beneficiaries availing housing loans from banks, housing finance companies and other similar institutions.
What is a subsidy on a loan? Is there any subsidy on PMAY Loan Scheme?
A subsidy is a sum provided by the government to a beneficiary in order to exert its welfare objective or encourage a particular trade/field. A subsidy on a loan specifically means that the government agrees to pay a part of your interest rate to the lending institution- just to make the credit more affordable and attractive for you.
Yes, there is a subsidy on Pradhan mantra Awas Yojana Scheme. Also, The credit linked subsidy is
- Available at the rate of 3- 6.5 Percent
- For 20 years or tenure of loan, whichever is lower
- NPV of the interest subsidy is to be calculate at discount rate of 9 %
- Here, the maximum amount of loan means that even if you take a loan of a higher value, the interest subsidy will be available on the maximum amount specified in the scheme only.
- For the purpose of calculating annual family income under this scheme, family comprises of husband, wife and unmarried children.
- EWS and LIG category, the house has to be mandatorily be in the name of a woman member of the family (except in case of construction)
- Also for EWS and LIG category, the house should be the family’s first property to be acquired in any family member’s name.
Pradhan Mantri Awas Yojana Eligibilty – Who is eligible for PMAY 2020-21?
Earlier, the Pradhan Mantri Awas Yojana was supposed to cover only Economically Weaker Section (EWS) and Lower Income Group (LIG), but by a recent amendment it has been decided to cover Middle income Group (MIG I & MIG II) in the scheme as well. Let us first understand who are eligible under these three categories for PMAY 2021
- EWS– Economically Weaker Section- Annual family income not exceeding 3 lakh
- LIG– Lower Income Group- Annual family income 3-6 lakhs
- MIG I– Middle Income Group-I- Annual family income 6- 12 lakh
- MIG II– Middle Income Group-II- Annual family income 12-18 lakh
Apart from income classification, government has put some restrictions on house carpet area etc in order to decide the level of subsidy to be given to each group.
Maximum Carpet Area
- EWS– 30 Square Meter
- LIG– 30 Square Meter
- MIG I– 30 Square Meter
- MIG II– 150 sq meter
- EWS– 6.5%
- LIG– 6.5%
- MIG I– 4%
- MIG II– 3%
- EWS– Rs. 600000
- LIG– Rs. 600000
- MIG I– Rs. 900000
- MIG II– Rs. 1200000
Period of Subsidy
- EWS– 20 Years or loan tenure
- LIG– 20 Years or loan tenure
- MIG I– 20 Years or loan tenure
- MIG II– 20 Years or loan tenure
Maximum Subsidy Amount
- EWS– Rs. 2.67 Lakhs
- LIG– Rs. 2.2 Lakhs
- MIG I– Rs. 2.35 Lakhs
- MIG II– Rs. 2.3 Lakhs
- EWS– Loans sanctioned on or after 17/06/2015
- LIG– Loans sanctioned on or after 01/01/2017
- MIG I– Loans sanctioned on or after 01/01/2017
- MIG II– Loans sanctioned on or after 01/01/2017
How to check Status of Pradhan Mantri Awas Yojana?
In order to check the status of your Pradhan Mantri Awas Yojana application, you simply have to click the link below the apply now option, which clearly say
You can follow the link and check your application status from thereon.
Pradhan Mantri Awas Yojana Customer care
The Pradhan Mantri Awas Yojana also has a series of customer care number. The numbers can be used anytime you feel any doubt regarding the scheme or specifically about your application status. The PMAY helpline numbers are
You can also download the official app of PMAY, by the name of AWASAPP. You can also download it for android devices here-
Pradhan Mantri Awas Yojana Benefit List
There are a lot of benefits for availing credit linked subsidy under the Pradhan Mantri Awas Yojana.
- Your cost of house loan is reduced by Rs 2.2 lac at least, which is a lot considering the increasing cost of living in urban India
- It increases growth of home loans, meaning that more Indians will have access to self-owned homes due to decreased cost of owning them
- The vision of everyone owning a home by 2022 is an ambitious, but one of the biggest government subsidy programs in the world if we see the population size to be covered under this.
- You also get tax benefits on housing loan.
How to apply for Pradhan Mantri Awas Yojana
The application is simple and easily accessible. If you are availing loan from a bank or financial insitituion, you only need to select the box where they have specifically asked if you are eligible and wish to be covered under the PMAY schemes(all bank forms have this requirement).
Otherwise, you can go to the official website of PMAY, link of which is given below.
Just follow the instructions on the page and you can successfully register the application.
Name of Banks giving PMAY Scheme
Almost all banks and housing finance institutions engaged in disbursing housing credit are giving benefit available under the Scheme. To name few banks, who offer PMAY
- State Bank of India(SBI) and its Subsidiaries
- ICICI bank
- Axis Bank
- Yes Bank
- IDBI Bank
- Punjab National Bank
So what is your view on Pradhan Mantri Awas Yojana Scheme(PMAY)? Are you eligible for PMAY? Also, if you liked the article, please share it with your family and friends.
Please feel free to ask if you have any queries!!