Knowing the Key Features of PMAY

Since the PMAY initiative was launched in 2015, many people have benefited from it. Read on to learn more about the key features of PMAY, one of the most popular affordable housing schemes in India.

In June 2015, the government of India announced an affordable housing scheme known as the Pradhan Mantri Awas Yojana. The scheme, which is in line with the government’s ‘housing for all’ mission, aims to provide a pucca housing for all Indian citizens. Since its launch, the scheme has gained tremendous popularity all over India. Let us look at some of the important features of the scheme.

Constructions of new houses

To bridge the gap between the demand for houses and the supply and to eliminate the slums in the urban area, the government of India aims to build more than two crore new affordable housing units across cities. The process for construction has started in many states.

To build the houses, the government has collaborated with various builders in India and has set specific standards for construction. The houses built under the PMAY scheme will have a minimum of 30 square meter carpet area. And, the home will be constructed using eco-friendly materials and construction technology, all the occupants will have access to basic facilities like 24×7 supply of electricity, clean potable water, sanitation facilities and gas connection.


One of the most important features of the PMAY scheme that deserves a special mention is the CLSS (Credit Linked Subsidy Scheme). Apart from building new affordable homes for the benefit of the poor people, under PMAY, the government also aims to provide financial aid to the aspiring home buyers across economic groups. The assistance is offered in terms of subsidy on the home loan interest rate.

To ensure that all PMAY applicants get the maximum benefit from the subsidy, the percentage of the grant is decided based on your income group. The following table will help understand the maximum subsidy you can avail:


Income Group Annual Income (in Rupees) Subsidy available on home loan interest rate (in percentage)
Economically Weaker Section (EWS) Less than 3 lakhs 6.50%
Lower Income Group (LIG) 3 lakhs to 6 lakhs 6.50%
Middle Income Group 1 (MIG 1) 6 lakhs to 12 lakhs 4%
Middle Income Group 1 (MIG 2) 12 lakhs to 18 lakhs 3%

Women-friendly scheme

Another significant feature of the PMAY scheme is that it encourages women citizens to apply for a home loan and become homeowners. As per the scheme mandate, if a married man is applying for a home loan under PMAY, then he must mandatorily include his spouse as the co-applicant of the loan, irrespective of whether she contributes towards the repayment of the loan.

Purpose of the loan

The benefits of interest subsidy on home loans under the PMAY scheme is not limited to buying a new or an under-construction property. Under the scheme, you can also avail of a loan for construction of your own home on the plot of land you own or home extension purposes. However, you must know that the home-extension or home-improvement loan is only available for members belonging to the EWS and the LIG groups.