Know-How to Avail Housing Loan Subsidy Under PMAY ( Pradhan Mantri Awas Yojana)

Avail Housing Loan Subsidy Under PMAY
Jan 5, 2024 Reading time : 3 min

The Pradhan Mantri Awas Yojana is an initiative undertaken by the Government of India to boost the real estate sector of the economy. Under this scheme, the Government initiated a process called the Credit Linked Subsidy Scheme. The credit-linked subsidy scheme provided a subsidy on the loan’s interest amount sanctioned for constructing, purchasing, or repairing homes. The Pradhan Mantri Awas Yojana is mainly directed towards the economically weaker sections of society. It ensures everyone can build or purchase their new homes through adequate assistance from the Government. 

Eligibility criteria of PMAY

The following are the eligibility criteria for PMAY-

  • The beneficiary families under this scheme should comprise of husband, wife, and their unmarried children. Any adult member who earns a living is considered to be a separate household. 
  • The beneficiary of the scheme should not own any pucca house. Thus, people holding kutcha houses by their name are only allowed to apply for this scheme. 
  • The annual income of the applicant should range between 3-18 lakhs. 
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    Procedure of Application

    Individuals need to fill up a two-page form to apply for a housing loan under the Pradhan Mantri Awas Yojana. 

    The first page consists of the Adhaar card details of the individual. You need to provide your Adhaar number and can only continue once it is approved. The scheme is linked to the Adhar card details of individuals to prevent fraud. 

    The second page requires the applicant to fill-up their details. These include their address, number of family members, total annual income, and other similar information. 

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      Categories of the Pradhan Mantri Awas Yojana

      The Pradhan Mantri Awas Yojana can be broadly divided into the following categories:

      • Other categories: The first category of the scheme includes the economically weaker sections of society, middle-income groups, and lower-income groups. The income cap for these groups is three lakhs, 3-6 lakhs, and 6-18 lakhs annually. People from lower and middle-income groups can avail themselves of the Credit Linked Subsidy Scheme. People from the economically weaker sections can apply under all the verticals without restrictions. 
      • Slum-dwellers: The second category of the Pradhan Mantri Awas Yojana consists of slum dwellers. Slums are areas that comprise sixty to seventy households, with nearly 300 people living in unhygienic conditions. Slums are also characterized by poor infrastructure, lack of drinking water and sanitation facilities. The people from slums can also apply under the Housing for All scheme, as provided by the PMAY scheme. 


      The Pradhan Mantri Awas Yojana, initiated by the Ministry of Housing and Development, attempts to reduce the gap between the rich and the poor in terms of accommodation. The scheme ensures that the poor and needy are provided with adequate financial assistance and credit facilities to set up their own house. There are several categories under this scheme that segregates the population of India based on their income and assists them in compliance with the same. People belonging to the categories mentioned above can apply for this scheme and enjoy housing loans and benefits.

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