Pradhan Mantri Awas Yojana

Pradhan Mantri Awas Yojana (PMAY) is an initiative by the GOI in which affordable housing will be provided to the urban poor with a target of building 2 crore (20 million) affordable houses by 31 March 2022. It has two components: Pradhan Mantri Awas Yojana (Urban) (PMAY-U) for the urban poor and (PMAY-G and also PMAY-R) for the rural poor. This scheme is converged with other schemes to ensure houses have a toilet, Saubhagya Yojana electricity connection ,Ujjwalla Yojna connection, access to drinking water and Jan Dhan banking facilities, etc. Total 1 crore homes are approved against total demand of 1.12 crore as of 28 December 2019.

As a part of the continuous efforts of the Indian Government to fulfill the housing needs of rural and urban poor, Pradhan Mantri Awaas Yojana was launched by Prime Minister  in June 2015 with an aim to provide affordable housing .

Under PMAY, it is proposed to build 2 crore houses for urban poor including  economically weaker section and low income groups in urban areas by the year 2022 through a financial assistance of 2 lakh crore (US$28 billion) from the central government. Under the Pradhan Mantri Awas Yojana, a subsidy of ₹2.67 lakh is provided by the government on the interest of home loan for buying a house. The Uttar Pradesh Housing Development Council will provide houses at affordable rates under the Pradhan Mantri Awas Yojana. Applications have been sought under this scheme for about 3,516 houses in  UP. The booking for which starts from 1 September 2020 and the last date of booking is 15 October 2020. These houses are located in 19 cities of the state of Uttar Pradesh. People from poor families will be able to buy these houses for only ₹3.5 lakh. All those people whose annual income is less than ₹3 lakh are eligible to apply for these houses. The Uttar Pradesh Housing Development Council had earlier kept the repayment time of the house up to 5 years, which has been changed to 3 years.

The features of Pradhan Mantri Awas Yojana are that the government will provide an interest subsidy of 6.5% (for EWS and LIG), 4% for MIG-I and 3% for MIG-II on housing loans availed by the beneficiaries for a period of 20 years under credit link subsidy scheme (CLSS) from the start of a loan. The houses under Pradhan Mantri Awas Yojana would be constructed through a technology that is eco-friendly, while allotting ground floors in any housing scheme under PMAY, preference will be given to differently abled and older persons.


Eligibility criteria

Condition for PMAY: (a) Beneficiary max age 70 years, (b) EWS (Economic Weaker Section) family income limit is ₹3 lakhs per annum and for LIG (Lower Income Group) Family Income limit is ₹6 Lakhs per annum, and Middle Income Group -(MIG-I) income between ₹6 lakhs to ₹12 lakhs per annum, (MIG-II) income between ₹12 lakhs to ₹18 lakhs per annum  c) The beneficiary should not have an own dwelling unit on the name of any family member in any part of India. d)The loan applicant should not have availed any central/state government subsidy or benefit for buying a home under the PMAY scheme. e)Currently, the loan applicant should not own any property under
their name and along with any of the family members (including the dependents). f)The home renovation or improvement loans, self-construction loans will be allocated only for EWS and LIG categories.

The houses given under this scheme will be owned by females or jointly with males.


3 Phases of PMAY envisage starting and completing the house construction work as follows:

  • PMAY Phase-1 from April 2015 to March 2017 to cover 100 cities.
  • PMAY Phase-2 from April 2017 to March 2019 to cover additional 200 cities.
  • PMAY Phase-3 from April 2019 to March 2022 to cover the remaining cities.