What is PMAY (Pradhan Mantri Awas Yojana)?

Pradhan Mantri Awas Yojana (PMAY) is a flagship central government scheme launched in 2015 with the mission of 'Housing for All.' It aims to provide affordable housing to urban and rural households belonging to economically weaker sections (EWS), low-income groups (LIG), and middle-income groups (MIG) by 2022 — with subsequent extensions.

Two Components of PMAY

  • PMAY-Urban (PMAY-U): Targets urban slum rehabilitation, affordable housing, and credit-linked subsidies for urban areas.
  • PMAY-Gramin (PMAY-G): Focuses on construction of pucca houses for rural poor through financial assistance.

Verticals Under PMAY-Urban

  • In-situ Slum Rehabilitation (ISR)
  • Affordable Housing in Partnership (AHP)
  • Beneficiary Led Construction/Enhancement (BLC)
  • Credit Linked Subsidy Scheme (CLSS) — most popular for home loan borrowers

Key Benefits

  • Interest subsidy on home loans under CLSS (up to 6.5% for EWS/LIG).
  • Preference to women ownership/co-ownership.
  • Subsidised or direct housing units for eligible beneficiaries.

Eligibility Highlights

  • Annual household income criteria: EWS (up to ₹3 lakh), LIG (₹3–6 lakh), MIG-I (₹6–12 lakh), MIG-II (₹12–18 lakh).
  • Applicant or family member should not own a pucca house anywhere in India.
  • First-time home buyers are prioritised.

PMAY is India's most ambitious affordable housing initiative, having helped millions of families achieve home ownership. For eligible borrowers, the interest subsidy under CLSS alone can result in substantial savings on home loan repayment.

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