Pradhan Mantri Awas Yojana (PMAY) Scheme - Details

Latest Update:

Budget 2024-25: Three crore more houses will be provided under the PM Awas Yojana in rural and urban areas. Under the PM Awas Yojana Urban 2.0, the housing needs of 1 crore urban middle-class and poor families will be addressed with an investment of Rs.10 lakh crore. This will include the central assistance of Rs.2.2 lakh crore in the next 5 years. 

Budget 2023-24: In the Budget 2023, the outlay for the Pradhan Mantri Awas Yojana was enhanced by 66% to over Rs.79,000 crore. 

Pradhan Mantri Awas Yojana is a social welfare flagship programme of the Indian Government. It was launched in 2015 to provide pucca houses to all eligible beneficiaries in the urban and rural areas of the country.

What is Pradhan Mantri Awas Yojana?

Pradhan Mantri Awas Yojana (PMAY) was launched with the aim to provide housing at an affordable price to the weaker sections of the society, lower income group people, urban poor, and rural poor. The Yojana involves a construction of around 20 million houses at an affordable price. In the Budget 2023, the outlay for the Pradhan Mantri Awas Yojana was enhanced by 66% to over Rs.79,000 crore. The Pradhan Mantri Awas Yojana has two components:

1. Pradhan Mantri Awas Yojana Urban (PMAY-U)
2. Pradhan Mantri Awas Yojana Gramin (PMAY-G)

The scheme is also linked with other schemes like:

• Swachh Bharat Abhiyan which aims at reducing open defecation by constructing in-house toilets and community-owned toilets and aims to maintain cleanliness around the streets, roads, and houses
• Saubhagya Yojana which aims at providing electricity connection
• Ujjwala Yojana which aims at providing LPG Gas connection
• Accessibility of pure drinking water
• Pradhan Mantri Jan Dhan Yojana which aims at opening a zero balance account and spreading banking facilities to each and every person in the society.

Pradhan Mantri Awas Yojana Urban (PMAY-U)

PMAY-U focuses on providing affordable houses to providing houses to all eligible families/ beneficiaries not having a pucca house in cities and towns. All houses under the PMAY-U will have basic amenities, such as water supply, kitchen, electricity and toilet. 

This scheme promotes women empowerment by providing the house/ land ownership in name of the female member or in joint names. Under this scheme, preference is given to senior citizens, differently abled persons, SCs, STs, Other Backward Classes (OBCs), single women, transgender, minority, other weaker and vulnerable sections of the society. 

In August 2022, the Union Cabinet approved for the continuation of PMAY-U up to 31 December 2024. As of 15 July 2024, 118.64 lakh houses are sanctioned and 84.7 lakh houses are completed under this scheme.

Pradhan Mantri Awas Yojana Gramin (PMAY-G)

PMAY-G focuses on providing pucca houses to all households living in kutcha houses or all houseless people in rural areas. This scheme combines with other Government schemes to provide basic amenities to the houses, such as electricity, drinking water, clean and efficient cooking fuel, toilet, treatment of solid and liquid waste etc. 

Under this scheme, cost of unit assistance will be shared between the Central and State Government in the ratio 60:40 in plain areas and 90:10 for North Eastern states, Himachal Pradesh, Uttarakhand and Jammu and Kashmir. As of 15 July 2024, 2 crore 94 lakh houses are sanctioned and 2 crore 63 lakh houses are completed under this scheme.

Benefits of PM Awas Yojana

House: Beneficiaries will get a own house of a minimum size of 25 square meter under PMAY-G. The beneficiaries under PMAY-U will get a own house of 30 square meter to 200 square meter carpet area depending on their category (EWS, LIG, MIG).

Assistance: The beneficiaries under the PMAY-G will receive an assistance of Rs. 12,000 for the construction of a toilet from the Swachh Bharat Mission (G). They will also receive a unit assistance of Rs. 1.20 lakh in plains and Rs.1.30 lakh in Hill states, Jammu and Kashmir, Ladakh, North Eastern States, difficult areas and IAP/ worst affected Left-Wing Extremism (LWE) districts. The beneficiaries under the PMAY-U will get a Central assistance of Rs.1.5 lakh per EWS house.

Land ownership: The government will provide government land or any other land (public land) for landless persons to construct houses under PMAY.

Women empowerment: The houses/ land will be alloted in the name of the woman member or jointly in the name of the husband and wife of the household, thus, empowering women of the country.

Interest subsidy: Beneficiaries of PMAY will get interest subsidy on housing loans for acquisition or new construction of houses from the Primary Lending Institutions (PLIs).

Improved socio-economic status: The houses provided to homeless families will improve their socio-economic status and also their quality of life. A house with all amenities will lead to better education, health and overall well-being. 

Reduction in slums: The PMAY-U will help to reduce slums in towns and cities by providing the slum dwellers a pucca house. This will help to bring slum dwellers into the formal urban settlement.

Direct Transfer: The financial assistance under the scheme is directly transferred to the beneficiaries electronically to their Bank or Post office accounts linked to Aadhaar. Thus, it reduces the chances of fraud and ensures that the beneficiaries receive funds.

Components of PM Awas Yojana

The PM Awas Yojana - Urban has 4 major components:

• In-Situ Redevelopment of slums using land as a resource, with the participation of the private sector. This mission aims at leveraging the potential of land under slum areas and providing formal urban establishments to slum dwellers.
• .Credit Linked Subsidy –  Under this scheme, the government will provide an interest subsidy of 6.5% on housing loans for 15 years from the start of the loan, which will make housing affordable. The Net Present Value (NPV) of the interest subsidy will be calculated at a discount rate of 9%. The loan amount of Rs 6 lakhs is only applicable for the credit-linked subsidy scheme and any amount beyond Rs 6 lakh does not attract any subsidy. The lending institutions will directly credit the interest subsidy to the beneficiaries’ accounts which will result in reduced Equated Monthly Installment (EMI) and reduced housing loan amount.
• Affordable Housing in Partnership (AHP) –  In partnership with the Public and Private sector, affordable housing will be provided to the economically weaker sections. The States or Union Territories, either with different agencies or in partnership with different industries can plan affordable housing projects.
• Enhancement and construction of beneficiary led house –  Under this component, the beneficiaries who are not able to avail the advantages of the above three components will be benefited. This mission provides assistance to families of EWS category to construct new houses or enhance the existing houses on their own to cover the beneficiaries. Under this mission, families will get a central assistance of Rs 1.50 lakh to enhance their existing houses or construct new houses. Under the Pradhan Mantri Awas Yojana, the houses will be constructed with eco-friendly technology and preference will be given to old and disabled while allotting ground floors.

Pradhan Mantri Awas Yojana Eligibility

The following can apply for PMAY - Urban:

• Under 3 components: The economically weaker sections, which include Low-Income Groups (LIG), Middle-Income Groups (MIG) and EWS, are considered as beneficiaries for the ‘Housing for All Scheme’. EWS having an annual income cap of Rs 3 lakh, LIGs having a cap of Rs 3 to 6 lakh, and MIGs having a cap of Rs 6 to 18 lakh can apply for this scheme.
• Slum Dwellers– These include people living in poorly built residences which are unhygienic and have unhealthy drinking water and sanitation facilities.

The following can apply for PMAY - Gramin:

All the houseless and households living in zero, one or two room kutcha houses with kutcha wall and kutcha roof as per SECC (Socio Economic and Caste Census) data. However, the following households cannot apply for this scheme:

• Living in pucca house 
• Having a motorised two/ three/ four-wheeler 
• Having a mechanised three/ four-wheeler agricultural equipment
• Has a Kisan Credit Card with a credit limit of Rs.50,000 or above 
• Any member of the household is a Government employee
• Has a non-agricultural enterprises registered with the Government
• Pays income/ professional tax
• Own a refrigerator/ landline phone/ 2.5 acres or more of irrigated land/ 5 acres or more of irrigated land for two or more crop seasons/  7.5 acres of land or more with at least one irrigation equipment

Beneficiaries under Pradhan Mantri Awas Yojana

The following are the traget beneficiaries under PMAY - Urban:

• Labour, urban poor (rickshaw pullers, street vendors, other service providers, etc.), industrial workers, and migrants belonging to EWS/ LIG segments
• Scheduled Castes/ Scheduled Tribes/ Other Backward Classes, widows, and minorities belonging to EWS/ LIG segments

The following are the traget beneficiaries under PMAY - Gramin:

• Scheduled Tribes (ST)/ Scheduled Caste (SC)
• Households without shelter 
• Destitute/ living on alms
• Manual scavengers
• Primitive tribal groups
• Legally released bonded labourer

How to Apply for Pradhan Mantri Awas Yojana?

Steps to apply for PMAY-U

Step 1: Go to the Pradhan Mantri Awas Yojana official website.

Step 2: Click on ‘Sign In’ option and click on ‘New User? Register Here’.

Step 3: Enter Aadhaar details to proceed (mandatory for enrolling in PMAY).  

Step 4: After filling in the Aadhar details, you will be redirected to the application form stage where you will have to fill in the details accurately.

Step 5: Once this is done,  click on ‘Save’ and enter the Captcha code.  

Step 6: Next, click on  ‘Save’. The application is now complete and a print out can be taken at this stage.

PMAY-G Apply Process

Eligible beneficiaries can visit the respective Gram Panchayat, Village Sabha or lowest unit of local self-government recognised by the respective State/ UT Panchayat Act and submit your details to the Gram Panchayat/ Village Sabha officials for enrolling to the PMAY-G.

The PMAY-U and PMAY-G provide affordable housing to people belonging to the weaker sections of the society. Under this scheme, assistance is provided to the beneficiaries to build their own houses with basic amenities and ensures better quality of life.