Everything You Need to Know: Pradhan Mantri Awas Yojana 2021-22

Introduced in 2015 by the Indian government, the Pradhan Mantri Awas Yojana’s goal is to provide “housing for all”. This scheme focuses on empowering financially backward sections of society and helps them achieve their dream home.

One of the major benefits of this flagship program is the Credit Linked Subsidy Scheme (CLSS). Under the Pradhan Mantri Yojana scheme, low-income, middle-income, and economically backward groups can avail necessary financial assistance to make housing affordable.

Features and benefits of PMAY

The Indian government has decreased the GST on housing loans for applicants under this scheme. Following are some of the features and benefits of this scheme.

  • Subsidies for the citizen

One of the notable benefits of PM Awas Yojana is subsidised interest offered by the government for first-time borrowers. As per this scheme, neither the borrower nor any of their family members should own a house under their name.

The government provides subsidies as per the applicant's income bracket, comprising EWS, MIG (I-II), and LIG.

  • Applicants belonging to EWS/LIG category can avail of a subsidy of 6.5% for 20 years

  • Individuals belonging MIG-I category can avail of subsidized interest of 4% on a loan amount of Rs.9 lakh for 20 years

  • For those falling under MIG-II category can avail of a subsidized interest of 3% on an amount of Rs.12 lakh 

The subsidised amount is directly credited to the beneficiary’s loan account, leading to effective EMIs. This is how the credit linked subsidy scheme works under this scheme.

  • Housing for all groups

Under the Pradhan Mantri Yojana, the government focuses on providing well-constructed affordable houses in urban areas for the beneficiaries. The construction of these houses has started in different Indian states. Through these programmes, the government can uplift the living standard of the economically backward section of society.

  • Benefits for minorities and women

The Pradhan Mantri Yojana makes female ownership mandatory by ensuring that the house is registered in her name even if she is not purchasing the property. In addition, special provisions are available for widows, transgender, minorities, salaried women, and seniors. In addition, senior citizens are provided with ground floor accommodation for their comfort.

However, to avail of the benefits of this scheme ensure hassle-free loan approval, individuals need to meet PM Awas Yojana eligibility criteria.

Eligibility parameters of Pradhan Mantri Yojana 

Applicants will be eligible to avail of the benefits of this scheme if they meet these qualifying parameters:

  • The beneficiary or any of their family members must not own a pucca house in any part of India.

  • As per Census 2011, all the statutory towns that are notified would be eligible to avail benefits under this program.

  • Eligible borrowers must not have availed any central assistance regarding any housing schemes before.

Therefore, successfully meeting these parameters will allow urban residents to get a house via PMAY.

Steps to apply for Pradhan Mantri Yojana

If an individual qualifies for the PMAY home loan scheme, he or she can apply for it by following the procedure below:

  • Step 1: Visit the official website of PMAY.

  • Step 2: Select “Citizen Assessment” and choose the applicant’s category.

  • Step 3: Applicants will be redirected to a page where they need to fill in their Aadhaar card details.

  • Step 4: Fill the application form by entering personal and financial details.

  • Step 5: Enter the displayed Captcha code, verify necessary details and click on “Submit”.

After applying for this scheme, one will receive an application number through which they can check the PMAY list.

Now that individuals have detailed knowledge about this scheme, they can consider applying for home loans from reputed financial institutions to avail of subsidized interest under this program. 

Besides, individuals can avail pre-approved offers extended by these financial institutions, further streamlining and accelerating the loaning procedure. These offers are available on a wide range of financing options such as home loans, loans against property, etc. Therefore, one can check their pre-approved offers by submitting their essential credentials.


Thus, under this Pradhan Mantri Yojana, individuals can avail affordable houses constructed for the benefit of this country’s urban poor.


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