Points You Should Know About PMAY Subsidy Scheme


Poverty has always been one of the major issues in India where the economically weaker sections have constantly been struggling with shelter deprivation. A recent report stated that around 18.78 million of India’s urban population are deprived from proper housing facilities and shelter.

In order to improve the situation, the Central Government decided to come up with schemes like PMAY or Pradhan Mantri Awas Yojana that envisions ‘Housing for All’ by 2022. The sole purpose of this scheme is to provide affordable housing facilities, and home loans against subsidised interest rates to help the urban and rural population of India. The scheme proposes to build 2 crore houses by the year 2022 which can solve the excessive demand for housing without imposing financial burden on low-income groups.

However, before availing the benefits of this scheme, individuals should delve deeper to know additional aspects like eligibility parameters, benefits for each income group, etc. to maximise its benefits.

How is Pradhan Mantri Awas Yojana beneficial?

The launch of this particular scheme has given an instant boost to the home loan market, since individuals can make use of the interest subsidy under PMAY to make availing the advance more affordable. The financial assistance from the Central Government has enabled individuals belonging to different income slabs to avail sizable funds and build their dream home.

The scheme consists of two different sections PMAY-U to help out the urban population and PMAY-G to assist the rural population with housing facilities. Apart from the interest subsidy of up to 6.5%, eligible individuals from the PMAY list can also reap the benefits from the following features –

  • Ground floor accommodation: This specific feature is mainly applicable to senior citizens and differently abled individuals who get a guaranteed ground housing accommodation under this scheme.
  • Advantages for women: The scheme mentions that there has to be a female co-applicant when you are applying for a home loan under PMAY. While the feature encourages women to be financially independent, it also comes with several benefits that you get from taking a joint home loan.
  • Eco-friendly materials: The building construction will be completed using eco-friendly materials.

Apart from these, the scheme coverage will be extended depending on the income slab you belong to. Therefore, certain eligibility parameters have been set that applicants need to meet to decrease their home loan interest rate and enjoy a subsidy under PMAY.  You can utilise a PMAY calculator to ascertain the loan amount you will be eligible to borrow under the scheme.

PMAY eligibility criteria

In order to avail all the benefits this particular scheme comes with; applicants first need to check if they meet the eligibility parameters. For instance,

  • The applicant or his/her family members cannot own a pucca house anywhere in the country.
  • Individuals who have already opted for different housing schemes under central assistance, will not be eligible for this one.
  • PMAY scheme also asserts certain rules in terms of the income group that applicants belong to. The interest rate subsidy will be available for those who meet these requirements.

Individuals failing to meet the eligibility requirements set under PMAY can alternatively opt for a home loan against low interest rates.

Here, they should look for pre-approved offers extended by financial institutions to streamline the loan application process. These offers are available on several financial products like home loans, loan against property, etc. In order to check your pre-approved offer, all you need to do is submit your name and contact number.

PMAY is not only ideal for individuals belonging to the economically weaker sections, but also for those who are looking for emergency funding options to fund the purchase of a house. By availing home loans with subsidised interest rates, these requirements can be easily handled.


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