A Guide to Pradhan Mantri Awas Yojana

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Pradhan Mantri Awas Yojana (PMAY) is a welfare scheme launched by the Prime Minister in 2015. The aim of the initiative is to empower people with the financial means to buy a house. The scheme’s mission is to help build 2 Crore affordable housesby 2022.

This article will explain how Pradhan Mantri Awas Yojana helps citizens, what are its eligibility conditions, and how to apply for the subsidy.

Owning a home is one of the biggest issues people living in urban areas face. The constant rise of real estate prices can deter many people from acquiring a house. In order to deal with this problem, the government has launched Pradhan Mantri Awas Yojana, an initiative that makes it easier for the urban poor to buy a house. Beneficiaries of this scheme get an interest subsidy on their home loan amount.

The benefit is provided under the Credit-linked Subsidy Scheme (CLSS), a vertical of the PMAY. The interest subsidy can be used to buy or construct a house. The beneficiaries of CLSS will get an efficient home with standard amenities. However, an applicant must meet the eligibility requirements of the scheme.

Eligibility Requirements

Under the PMAY scheme, households are classified based on their income and are divided into four categories. The interest subsidy depends on which category a household falls under.

Here is a breakdown of the four categories-

Category Income Subsidy Carpet Area Limit
Economically Weaker Section (EWS) Below Rs. 3 Lakhs 6.50% 30 Sq. Mt
Low Income Group (LIG) Between Rs. 3 Lakhs to Rs. 6 Lakhs 6.50% 60 Sq. Mt.
Middle Income Group I (MIG I) Between Rs. 6 Lakhs and Rs. 12 Lakhs 4% 160 Sq. Mt.
Middle Income Group II (MIG II) Between Rs. 12 Lakhs and Rs. 18 Lakhs 3% 200 Sq. Mt.


Now that you know the categories, find out if you meet the eligibility requirements-

  • It should be your first pucca house. You or your family members shouldn’t be an existing homeowner.
  • Female ownership or co-ownership is necessary. However, households with no female members can be exempted from this requirement.
  • If you have taken benefit from a different housing initiative by the government, then you aren’t eligible for the PMAY scheme.
  • Joint ownership is allowed for married couples. However, the subsidy will be given to only one member.

If you fall under a category and meet the requirements, then you can apply for an interest subsidy under the initiative.

How to apply for PMAYonline

  • Visit the PMAY website. (www.pmayis.gov.in)
  • Click on ‘Citizen Assessment’ option.
  • Households with income below Rs. 3 Lakhs should click ‘For Slum Dwellers’ option. Meanwhile, households with income above Rs. 3 Lakhs should click ‘Benefit Under 3 Components’ option.
  • Submit your AADHAR card details.
  • Next, you will be re-directed to the application page. You will have to fill the application form and submit personal details such as name, address, family members’ names, income, etc.
  • After submitting the form, you will get an assessment ID generated by the system. You must save and print the application.