PMAY – Pradhan Mantri Awas Yojana 2021 | Eligibility, Features & Benefits

PMAY - Pradhan Mantri Awas Yojana 2021


The Pradhan Mantri Awas Yojana is an ambitious affordable housing initiative launched by the government of India. Read on to know more about its eligibility, features and benefits.

Since the Pradhan Mantri Awas Yojana was launched in June 2015, thousands of home loan applicants have benefited from it. And, if you are looking to purchase a new home, you can make your dream true by applying for a home loan under PMAY scheme and get the interest subsidy. However, to receive the PMAY benefits, you must meet the eligibility criteria, which are discussed below:

You or any of your family members should not own a pucca house in any part of India.

You or any of your family members should not have received financial aid through any of the state or central government affordable housing initiatives.

If you are a married home loan applicant, as per the PMAY mandate, you can apply for a loan either individually or you can apply for a joint home loan with your spouse. However, either way you are eligible for only one subsidy.

Another significant PMAY eligibility criteria you must be aware of is that the property that you want to buy must necessarily be registered in the name of the female family member as a co-owner. This is irrespective of whether they sign the home loan paper as a co-borrower and contribute towards the repayment of the loan. The primary purpose of this is to empower the female members to be a homeowner and be financially independent.

You can avail the home loan interest subsidy under PMAY not only for purchasing a new home but also for carrying out repair works in your existing home or to convert your slum into a permanent residence.

Now that you are aware of the eligibility, it would help to know the features and benefits of PMAY, which are discussed below.

Provide pucca residence to all Indian citizens

One of the primary objectives of the PMAY scheme is to bridge the massive gap between the demand for affordable housings and its supply, especially in the urban areas and to eliminate the slums. So, with this aim, under the Housing for All scheme, the government aims to build more than two crore affordable housing units across different cities in India by 2022.

The construction of these housing units has already started in various states, including Maharashtra, Tamil Nadu, West Bengal, etc. By providing a pucca housing to all citizens, the government aims to uplift the living standards of those living below the poverty line.

Subsidy on home loan interest

Another critical aspect of PMAY is the CLSS (Credit-Linked Subsidy Scheme). Under this scheme, the government provides financial aid to the home loan borrower and encourages them to be homeowners. The aid is in terms of subsidy on the home loan interest rate and the PMAY benefits are made available to the citizens through specific lenders in India.

To get the PMAY subsidy benefits, you must meet the above criteria and the amount of subsidy you receive depends on the income category you belong to.

Empowering the women

One of the significant benefits of the PMAY scheme that has made it popular is that it empowers women home loan applicants. As per the scheme mandate, during the home allocation phase, preference will be given to women, widows and transgender applicants.

Also, for all home applicants who wish to get a PMAY subsidy, they must include a female member of the family a co-owner of the property. This is done to secure the financial future of the women when they grow old or become widowed.

Final Word

The PMAY scheme has been a blessing for all home loan applicants and home buyers in India. Make sure that you know about its features and benefits and take advantage of it while applying for a home loan.

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