Pradhan Mantri Awas Yojana (PMAY) was established on June 25, 2015, to ensure that India’s low-income families, middle-income groups, and economically-weaker sections get access to affordable housing. The Indian government introduced PMAY to foster its vision of “Housing for All”. 

It is a scheme geared towards the betterment of housing for India’s homeless citizens. Eco-friendly equipment is utilized to build houses for the twin purpose of conserving the environment and reducing air and noise pollution. 

A key objective of the scheme is to build two crores houses for people in the above-mentioned groups. To learn more about the scheme and how you can apply, read on. 

The Reason Behind PMAY’s Establishment

PMAY is the Indian government’s response to the constant rise in real estate prices. For citizens in urban areas, a 38% surge in property prices has been recorded. This has made it quite difficult to get a good house for a reasonable price. 

PMAY is a scheme planned by the Indian government to ensure affordable housing for all. PMAY exists to help many Indians afford houses either through two means—the Urban or Gramin.

For the Urban category, there are about 4,331 towns and cities to choose from. The focus of the PMAY-urban varies between the urban development authority, special area development authority, industrial development authority, and so on. 

Meanwhile, the Gramin category focuses on promoting top-quality housing for rural India. The homeless or those residing in decrepit houses can access financial relief of up to Rs.12 /lakhs or Rs.13 /lakhs. 

While the PMAY scheme has not reached a 100% completion status, its feats from inception to date cannot be overlooked. A total of 1.12/crores homes have been made available for the scheme. 


The Components of PMAY

There are four components of this incredible housing scheme that aid members of the Economically Weaker Sections (EWS), Lower Income Group (LIG), or Middle Income Group (MIG) to enjoy great housing for less. 

Affordable Housing in Partnership (AHIP)

This is the end product of a collaboration with the government, public and private sectors. It looks to furnish the economically weaker sections of India’s urban areas with inexpensive housing. 

You should note that this scheme focuses more on people with disabilities, senior citizens, and other individuals with similar traits.  

Subsidiary for Beneficiary-led Construction or Enhancement 

Members of the EWS can avail themselves of this component to renovate their homes or erect new houses. This component prioritizes the provision of monetary aid to EWS homes and each of such homes receives assistance worth Rs.1.5 / lakh.

“In – Situ” Slum Redevelopment (ISSR) Using the Land as a Resource

Families located in slums can now hope for better housing because of this component. The central government sets the price of the houses while the state determines the beneficiary contribution.

Credit Linked Subsidy Scheme (CLSS)

This component takes up the role of providing subsidy rate, subsidy amount, maximum loan amount, and other details as long as applicants are eligible for the scheme.


The Economic Groups that Qualify for the PMAY Scheme

Below are the groups that can access the PMAY housing scheme: 

  1. Low Income Group

If your annual income falls between Rs.3/ Lakhs and Rs.6/lakhs, you are eligible for the PMAY scheme. 

  1. Middle Income Group I

For this category, families whose annual income ranges between Rs.6/ lakhs and Rs.12/lakhs qualify for the PMAY scheme. 

  1. Economically Weaker Sections

Families with an annual income up to Rs.3/lakhs are also eligibility for the PMAY scheme. 

How to Apply for the PMAY Scheme

You can apply for the PMAY scheme either offline or online. For offline applications, you must visit one of the many Common Services centres (CSS) responsible for administering government services.

If you want to apply online, you need to visit the official PMAY portal.


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