What are the Benefits of PMAY Scheme?

Pradhan Mantri Awas Yojana (PMAY) Scheme is a Home Loan scheme launched by our Prime Minister Narendra Modi. It was launched by the Government of India in June 2015. The mission of this scheme is “Housing for All.’ It aims to provide affordable housing for the urban poor and rural poor people.

The PMAY scheme caters to four income groups of people:

  1. Economically Weaker Section (EWS)
  2. Low Income Group (LIG)
  3. Middle Income Group-I (MIG-I)
  4. Middle Income Group-II (MIG-II)

Benefits of Pradhan Mantri Awas Yojana (PMAY) Scheme

Let us have a look at a few benefits of the PMAY (Pradhan Mantri Awas Yojana) Scheme:

  • Housing for All

With the mission of “Housing for All”, this scheme provides affordable housing for all sections of the people. The mission of this scheme is to construct about 20 million houses by the year 2022. Only 40% of the total population of the country lives in urban areas. This scheme has started providing a housing roof to the rest of the population. 

  • Subsidy through CLSS

The Credit Linked Subsidy Scheme (CLSS) of PMAY provides affordable housing to all. For the beneficiaries of EWS/LIG category, the interest subsidy is available at the rate of 6.5% on the Housing Loan amount for a tenure of 20 years. For the beneficiaries of MIG-I and MIG-II category, the interest subsidy is available at the rate of 4% and 3% respectively on the loan amount for a tenure of 20 years. The Net Present Value (NPV) of the interest subsidy is calculated at a discount rate of 9%.

  • Affordable Housing in Partnership

Another benefit of this mission is to provide affordable housing in partnership. You can get the Central assistance at the rate of Rs.1.5 lakh per EWS house in such projects. It provides financial assistance to EWS houses being built through different partnerships by States/Union territories.

  • Slum Rehabilitation for Slum Dwellers
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Under the PMAY scheme, the Government plans to develop the slum areas using land as a resource with the help of private partnership. The Central Government will assist by providing a grant of Rs.1 lakh per house on an average.

  • Individual House Construction

The PMAY scheme provides assistance to individual eligible families in the EWS category with the construction of new houses or renovation/extension of an existing house. If you belong to the EWS category, you can get financial assistance of Rs.1.5 lakhs for the same.

  • Benefit for the Aged & Disabled

For any ground-floor house built under the PMAY scheme, the Government gives preference to the people who are aged or disabled. Senior citizens and handicapped people can get a house on the ground floor for their physical convenience.

  • Renovation or Extension of the House

If you belong to an EWS or LIG category and own a house that only needs renovation or extension, then you can avail this loan scheme. If you want a loan for renovation or extension of your house, the carpet area has to be 30 sq. mts. for EWS category of people and 60 sq. mts. for LIG category of people.

  • Preference to Women

This scheme gives preference to women in the allotment of houses. This means that the female applicants will be given the first priority over the male applicants.

  • Eco-friendly Construction

The Government has strictly passed the rule that any house constructed under the PMAY scheme should follow the eco-friendly construction technology. This helps an individual getting his own eco-friendly house with his own savings.

The Bottom Line

If you are planning to buy or construct a house for your family, then do avail this loan under the PMAY scheme for its various benefits.



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