Pradhan Mantri Awas Yojana – Right Approach to Become a Homeowner

The Pradhan Mantri Awas Yojana or PMAY is a scheme of the Central Government of India with the mission of offering a house to all by 2022.2 min


In order to ensure that all Indian citizens have equal opportunity of buying their own home, the Indian Government launched the Pradhan Mantri Awas Yojana. This scheme is meant to create housing for all by 2022. This scheme was created to help low income groups, economically weaker sections of society, and middle income groups in buying their own dream homes at a subsidised rate of interest. The scheme also involves building affordable housing.

Using this scheme, you can get a Home Loan from your preferred lender at subsidised interest to make your home purchase and loan borrowing experience a pocket-friendly one. Leading NFBCs such as Bajaj Finserv are part of this scheme too. By taking a Home Loan under the Pradhan Mantri Awas Yojana, you can not only enjoy the interest subsidy, but also gain from nominal interest rates, a 3-EMI holiday, and Flexi Hybrid facilities that allow you to avail a principal holiday for up to 4 years.

Here is why PMAY can be beneficial in financing your dream home. 

  • Subsidised Rate of Interest

Availing a Home Loan under this scheme helps you avail an interest subsidy. This means that no matter what your Home Loan interest rate is, you can get up to Rs.2.67 lakh as subsidy on the total interest that you pay. This helps you significantly reduce your monthly expenses by cutting down on EMIs. Additionally, this subsidy is available for 20 years from the date of the loan sanction.

  • Advantages for Senior Citizen and the Disabled

PMAY ensures that senior citizens and disabled persons are given special preference in the affordable housing scheme. This ensures that both senior citizens and disabled persons are given homes on the ground floor for convenience.

  • Promotion of Female Ownership

With female ownership being a must in the PMAY schemes many women have been encouraged to purchase their own home.

  • Adding to an Existing Home

If you belong to the EWS or LIG group, you can take a loan at subsidised interest to renovate or extend your home. This means you can add a kitchen, bathroom or redo old rooms if you already have a home. The maximum carpet area for the EWS group is 30 sq meters and while the maximum carpet area for the LIG is 60 sq. meters.

  • Development in Slum Areas

With affordable homes being built, the government hopes to develop the slum areas and use this land as a resource to create better housing facilities. 

Phases of the Pradhan Mantri Awas Yojana

The Pradhan Mantri Awas Yojana has three phases that aims at development by building affordable housing. Look at the three phases below.

Phase I – This phase ranged from April 2015–March 2017 and covered 100 approved cities in India.

Phase II – This phase ranges between April 2017–March 2019 and includes 200 cities in India.

Phase III – Being the last phase, this phase ranges between 2019–2022 covering the remaining cities India that haven’t been included in Phase I and II.

Who is a Beneficiary? 

  • Economically weaker sections 

  • Low income groups

  • Medium income group 1

  • Medium income group 2

  • Scheduled Castes

  • Scheduled Tribes

  • Women

  • Transgenders

  • Senior citizens

Well, fulfill all the eligibility criteria of Pradhan Mantri Awas Yojana and avail the Home Loan subsidy on an affordable purchase or renovation of your first home and enjoy better living facilities.


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