Key Benefits of Pradhan Mantri Awas Yojana

The PMAY affordable housing scheme is part of the government’s ‘housing for all’ mission. It helps make the home loan affordable for the poor by providing subsidy on the home loan interest rate. Read on to know more about the PMAY benefits. 


Housing is a necessity for all. However, not everyone can afford to buy a home, especially people for the lower-income groups; they don’t have sufficient funds. So, to help the poor and provide them with a permanent residence, the government of India launched the Pradhan Mantri Awas Yojana, an affordable housing scheme in India. 

Under the scheme, the government aims to build more than two crore homes across urban locations in India by 2022. Also, under the credit-linked subsidy scheme (CLSS), which is an integral part of the PMAY, the government aims to provide interest subsidy to home loan applicants for buying new homes or constructing their own home. The subsidy amount is decided based on the income category you belong. 

Let us look at some of the important benefits of Pradhan Mantri Awas Yojana.

One of the biggest benefits of the PMAY scheme is the subsidy offered by the government on the purchase of new homes. However, to avail the subsidy benefit, you or any of your family members must not own a home in any part of India. To ensure that everyone gets maximum benefit from the subsidy, the government has categorised the beneficiaries into three income groups – EWS (Economically Weaker Section), LIG (Lower Income Group) and MIG I and II (Middle Income Group). 

If you apply for the PMAY subsidy under the EWS or LIG category, you get a subsidy up to 6% on home loans for 20 years. For eligible beneficiaries under the MIG – I and MIG – II category, the maximum grant you can get is 4% and 3% respectively. 

The government of India launched the PMAY scheme mainly to provide a permanent house to the urban poor and bridge the massive gap between the demand for housing units and its supply in cities. To build affordable housing units, the government has collaborated with several builders across India, and the construction work has begun in many states. Through the houses, the government aims to eliminate the slums in India and uplift the living standards of the poor. 

The PMAY scheme is not limited to the urban area; it gives equal importance to the development of the low-income groups in the rural area. Apart from raising the living standards of the poor, under the Pradhan Mantri Awas Yojana (Rural) scheme, the government also aims to develop the real estate and related industries in the rural areas. 

Another significant benefit of the PMAY scheme is that it makes female homeownership a mandatory clause. This means that if you apply for the PMAY subsidy benefits, you must register the property in the name of a female member of the family. This is done to empower women and encourage them to become homeowners. Additionally, during the allotment phase of the houses built under the scheme, preference will be given to the women, transgender widows and disabled applicants. 

The developers building affordable housing units are specifically instructed to use only eco-friendly building materials and construction technology. This is done to reduce the impact on nature and reduce pollution around the construction site. Additionally, all the houses built under the scheme are mandated to a few basic amenities, including 24×7 supply of electricity, access to clean drinking water, hygienic sanitation facilities, gas connection, etc. 

Final Word

Since the launch of the PMAY scheme in 2015, it has benefitted several home buyers in India. If you are looking to buy a new home, make sure that you check your eligibility for the PMAY interest subsidy and avail the subsidy. This will help you reduce the overall loan by a significant margin.