Pradhan Mantri Awas Yojana (PMAY Scheme), a flagship mission of the Government of India being implemented by the Ministry of Housing & Urban Affairs was launched on 25^th June 2015. It was launched by Honourable Prime Minister Shri Narendra Modi with the dream of providing affordable housing to every urban citizen. He has the vision to build 2 crore affordable houses by 31^st March 2022 with the mission of “Housing for All”.

All the major banks & Housing finance companies are aligned with this mission and offer benefits as outlined in the Pradhan Mantri Awas Yojana (PMAY) scheme.

The Ministry of Housing and Urban Poverty Alleviation (MoHUPA) has introduced in June 2015, an interest subsidy scheme called Credit Linked Subsidy Scheme (CLSS) under Pradhan Mantri Awas Yojana (Urban)- Housing for All, for purchase/ construction/ extension/ improvement of the house to cater EWS/ LIG/MIG segments to meet the housing demands in India.

Benefits of (Pradhan Mantri Awas Yojana) PMAY

CLSS under PMAY makes the loan affordable as the PMAY provides subsidies on the interest of the loan during repayment by the way of EMI. In simple words,

the interest amount is reduced by the subsidy amount available under the PMAY scheme. The subsidy amount under the scheme largely depends on the category of income to which you belong as well as the size of the property being financed.

Time to apply for PMAY

This scheme was launched in 3 phases:

PMAY Phase 1 covering 100 cities* from April 2015 to March 2017.

PMAY Phase 2 covering another 200 cities from April 2017 to March 2019.

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PMAY Phase 3 covers the remaining cities from April 2019 to March 2022.

(* City wise list can be viewed from The Ministry of Housing And Urban Poverty Alleviation (MoHUPA) website: http://mohua.gov.in)

So, any citizen who wishes to take advantage of the PMAY scheme can apply for a housing loan with any bank or housing finance company till March 2022.

Income Groups (for PMAY purpose)

EWS/LIG scheme – The mission was effective from June 17, 2015, and PMAY validity is till Mar 31, 2022
MIG-1 and MIG-II scheme – The mission was effective from March 31, 2020, and PMAY validity was till Mar 31, 2021.

Definition of a beneficiary family: A beneficiary family will comprise of husband, wife, unmarried sons, and/or unmarried daughters. An adult earning member irrespective of marital status can be treated as a separate household.

Other Conditions

Income apart, there is another key condition: the beneficiary family should not own a pucca house either in his/her name or in the name of any member of his/her family in any part of India.
Women Ownership/ Co-ownership- For EWS/LIG: Women ownership is mandatory only for new purchase and not for new construction on an existing piece of land or for enhancement/ repairs of an existing house. For MIG-I and MIG-II: Not mandatory
If you are married and want to avail Pradhan Mantri Awas Yojana benefit, either you or your spouse can apply or do so jointly.
Your income as a couple will be considered as a unit; however, if there is another adult earning member in the family, he/she can be treated as a separate household irrespective of their marital status.
You must not have any other central government assistance on home purchase/construction.
You have to submit a self-declaration about your total family income and documents of the desired property to your loan provider.
All loan accounts under Pradhan Mantri Awas Yojana must be linked with your Aadhar card.

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Pradhan Mantri Awas Yojana Eligibility

First, the property itself:

To avail of the subsidy, the residential property you choose must be a single unit or a unit in any multi-storeyed building.
The eligible unit needs to have basic facilities and infrastructure like toilet, water, sewerage, road, electricity, etc.

Second, the carpet area (walls not included) must not exceed:

EWS – 30 square meter (323 sq. ft)
LIG – 60 square meter (646 sq. ft)
MIG-I – 160 square meter (1722 sq. ft)
MIG-II – 200 square meter (2153 sq. ft)

In the end, the location:

All statutory towns as per Census 2011 and towns notified subsequently, including planning area as notified concerning a statutory town.
If you want to know if your town qualifies, click on the National Housing Bank (NHB) link below, and look up the section marked “Statutory Town and Planning Area Codes”: https://nhb.org.in/government-scheme/pradhan-mantri-awas-yojana-credit-linked-subsidy-scheme/

In Nutshell: