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Pradhan Mantri Awas Yojana Urban PMAYU

Pradhan Mantri Awas Yojana Urban

Pradhan Mantri Awas Yojana was introduced by Prime Minister Narendra Modi on 1 June 2015. This flagship scheme of BJP Government is being implemented by Ministry of Housing and Urban Affairs. This PMAYU mission will be implemented during 2015-2022. In Phase 1, 100 cities have been covered. In Phase 2, 200 cities have been covered. Duration of Phase 3 is from 04 January 2019 to 03 January 2022. Remaining cities will be covered under this period.  The aim of this scheme is to provide central assistance to Urban Local Bodies (ULBs) and other implementing agencies through States/UTs for the following:-

  • Credit linked subsidy
  • In-situ Rehabilitation of existing slum dwellers using land as a resource. This will be done through private participation.
  • Provide affordable housing in partnership
  • Subsidy for Beneficiary-led individual house construction/enhancement of house

Important point to note is that credit linked subsidy component will be implemented as a Central Sector Scheme. The other three components will be implemented as Centrally Sponsored Scheme (CSS).

Under this scheme affordable houses will be built in selected cities and towns. Eco-friendly construction materials will be used. This scheme is for the benefit of the urban poor population in India. Under the Credit Linked Subsidy Scheme, beneficiaries under PM Awas Yojana are eligible for interest subsidy if they avail a loan to purchase or construct a house.

Features of Pradhan Mantri Awas Yojana

  • The PMAY scheme covers all urban areas in the country. This includes 4041 statutory towns in India. First priority is given to 500 Class I cities. This will be done in 3 phases.
  • The credit linked subsidy aspect of the PMAY will get implemented in India in all statutory towns from the initial stages itself.
  • A Sustainable and eco-friendly technology is being used for construction of houses.
  • Differently abled and senior citizens are being given preference in allocation of ground floors.
  • Under PMAY Scheme, subsidy interest rate is provided at 6.5% on housing loan for the term of 15 years to all the beneficiaries.

What is Credit Linked Subsidy Scheme?

Government of India is committed to provide affordable housing to the urban poor population in India by 2022. Housing for all is the tagline of this ambitious scheme. Through various initiatives the BJP government is focusing on the following: –

  • Slum rehabilitation
  • Credit Linked Subsidy Scheme (CLSS)
  • Making housing affordable for all
  • It offers a subsidy for survey-led independent house construction or renovation.

Through the Credit Linked Subsidy Scheme, the Government aims at increasing the credit flow in institutions to meet the housing needs of the urban poor population in our country. Credit Linked Subsidy Scheme (CLSS) will be implemented by two nodal agencies in India, namely Housing Urban Development Corporation and National Housing Bank.

This scheme will pump the credit flow required to meet the housing needs. It will also focus on the demand aspects of affordable housing finance segment. The benefits under the CLSS can be availed by Economically Weaker Sections or Low Income Groups who are looking for housing loans from financial institutions and banks which are participating in the Pradhan Mantri Awas Yojana Scheme. The credit is given for new construction or for adding a room to their existing house.

Beneficiaries Under the Pradhan Mantri Awas Yojana

Pradhan Mantri Awas Yojana targets specific groups as given below:-

  • Women
  • Scheduled Caste
  • Scheduled Tribe
  • Economically Weaker Section of the society (EWS)
  • Low Income Group (LIG) population
  • Medium Income Group 1 (MIG-I)
  • Medium Income Group 2 (MIG-2)

CLSS for Economically Weaker Section (EWS) and Low Income Group (LIG)

People from Economically Weaker Sections (EWS) and Low Income Groups (LIG) can apply for housing loans from nominated financial institutions and banks.They will be eligible for an interest subsidy of 6.5% for a period of 20 years or for the tenure of the loans, whichever is lower.

This interest rate subsidy will be credited during the initial stage of the loan to the beneficiary’s loan account. This will be done through the lending institute which will lower their Equated Monthly Installments (EMIs) from the beginning itself.

The carpet area for Economically Weaker Sections can be up to 30 square metres and the carpet area for Lower Income Groups can be up to 60 square metres. Preference will be given to women, Scheduled Tribes, Scheduled Castes, backward classes, minorities, people with disabilities, and transgenders. Have a look at following table:-

Particulars Economically Weaker Sections Lower Income Group
Annual Income Up to Rs 3 Lakhs Rs 3 Lakhs to Rs 6 Lakhs
Maximum Loan Tenure 20 Years 20 Years
Revised Carpet Area 30 Sq Meters 60 Sq Meters
Interest Subsidy 6.5% 6.5%

CLSS for Middle Income Group (MIG)

Under the Middle Income Group (MIG), there are two sets of beneficiaries. The first set is named MIG-I. It covers people with an annual income of Rs 6 Lakhs to Rs 12 Lakhs. The second set named MIG-II. It covers people annual income of Rs 12 Lakhs to Rs 18 Lakhs. An Interest rate subsidy of 4% and 3% will be given to those who fall under MIG-I and MIG-II respectively. The maximum tenure of loan can go up to 20 years, for both MIG-I and MIG-II. The maximum loan amount permissible is up to Rs 9 Lakhs for MIG-I and Rs 12 Lakh for MIG-II. The discount rate for Net Present Value(NPV) is 9% for both MIG-I and MIG-II.

Particulars MIG-I MIG-II
Annual Income Rs 6 Lakhs to Rs 12 Lakhs Rs 12 Lakhs to Rs 18 Lakhs
Housing Loan Amount Eligible For Interest Subsidy Up to Rs 9 Lakhs Up to Rs 12 Lakhs
Maximum Loan Tenure 20 Years 20 Years
Revised Carpet Area 120 Sq Meters 150 Sq Meters
Interest Subsidy 4% 3%

How to avail PMAY Subsidy Scheme

  • From above mentioned table first check if you are eligible to apply for the Home Loan Credit Linked Subsidy Scheme.
  • If you meet the eligibility criteria, please contact the financial institutions or banks that are participating in the PMAY scheme. All banks may not be participating in this scheme.
  • Now fill the PMAY Home Loan Credit Linked Subsidy Application Form. Attach necessary documents and submit it to the bank/lender.
  • After verification by the lender, the housing loan amount will be credited to your bank account.
  • After the loan is given, your bank/lender will get in touch with the nodal agencies and will initiate the process of claiming interest subsidy.
  • After due verification, the interest subsidy will be credited to your loan account and your loan amount will be adjusted. This will lower your Equated Monthly Installment (EMI) amount.

List of Banks and Housing Finance Companies for Home Loan Under PMAY Scheme

IKF Housing Finance Private Limited Manipal Housing Finance Syndicate Ltd.
Ummeed Housing Finance Private Limited Mamata Housing Finance Company Pvt. Ltd.
West End Housing Finance Limited Mahindra Rural Housing Finance Ltd.
Viva Home Finance Ltd. Magma Housing Finance
Vastu Housing Finance Corporation Ltd LIC Housing Finance Ltd.
USB Housing Finance Corporation Ltd L&T Housing Finance Ltd.
Tata Capital Housing Finance Ltd. Khush Housing Finance Ltd.
Swarna Pragati Housing Microfinance Private Limited India Shelter Finance Corporation Ltd.
Swagat Housing Finance Company Ltd. India Infoline Housing Finance Ltd.
Supreme Housing Finance Limited India Home Loan Ltd.
Sundaram BNP Paribas Home Finance Ltd. India Bulls Housing Finance Ltd.
SRG Housing Finance Ltd. ICICI Home Finance Company Ltd.
Shubham Housing Development Finance Company Pvt. Ltd. Housing Development Finance Corporation Ltd.
Shriram Housing Finance Ltd. Housing and Development Corporation Limited
SEWA Grih Rin Ltd. Home First Finance Company Ltd.
Saral Home Finance Ltd. Hinduja Housing Finance Limited
Sahara Housing Finance Corporation Ltd HBN Housing Finance Ltd.
Repco Home Finance Ltd. Habitat Microbuild India Housing Finance Company Pvt. Ltd.
Religare Housing Development Finance Corporation Ltd. GRUH Finance Ltd.
Reliance Home Finance Ltd. GIC Housing Finance Ltd
RAAS Housing Finance (India) Ltd. Fullerton Home Finance Company Ltd
PNB Housing Finance Ltd. Fast Track Housing Finance Company Ltd.
Panthoibi Housing Finance Company Ltd. Equitas Housing Finance Pvt. Ltd.
Orange City Housing Finance Ltd. Edelweiss Housing Finance Pvt. Ltd
North East Region Housing Finance Ltd. DMI Housing Finance Pvt. Ltd.
Nivera Home Finance Ltd DHFL Vyasa Housing Finance Ltd
New Habitat Housing Finance and Development Ltd. Dewan Housing Finance Corporation Ltd.
National Trust Housing Finance Ltd. Cent Bank Home Finance Ltd.
Muthoot Housing Finance Company Ltd. Capri Global Housing Finance Private Limited
Muthoot Homefin Ltd. Capital First Home Finance Ltd.
Micro Housing Finance Corporation Ltd Can Fin Homes Ltd.
Mentor Home Loans India Ltd. AU Housing Finance Ltd.
MAS Rural Housing and Mortgage Finance Ltd. Aspire Home Finance Corporation Ltd.
Manappuram Home Finance Pvt. Ltd. Aptus Value Finance Corporation Ltd.
Aditya Birla Housing Finance Ltd. Aptus Value Housing Finance India Ltd.
Aadhar Housing Finance Ltd. Akme Star Housing Finance Ltd.

Article by Col P Chandra (Retd)

Some Important Links

Apply Online or PMAY

Track Application Status

Know more about how to apply

PMAY Credit Linked Subsidy Scheme

PMAY Gramin


Make Your Own House

Under the Pradhan Mantri Awas Yojana (Urban) {PMAY (U)}, demand survey is conducted by concerned ULBs, offline and online, free of cost. Online registration can also be made by eligible beneficiaries themselves through the Ministry’s website. Registration is also being facilitated by the State / UT Governments at their Common Service Centers (CSCs) at a nominal charge of Rs.25/- (Rupees twenty five only) plus GST. This is for information of the general public that this Ministry has not authorized any private entity or person to collect money as a consideration for availing of any benefit under the PMAY (U) Mission. The citizens are advised to verify with the Ministry officials in case of any doubt in this regard at the following contact number / email id:

Shri R.K. Gautam
Director (HFA-5),
Ministry of Housing and Urban Affairs
Room No. 118,G Wing, NBO Building,
Nirman Bhawan,
New Delhi-110011
Tel: 011-23060484, 011-23063285

Any person or entity unauthorizedly using the name or logo of the Ministry will be liable for legal action.


प्रधानमंत्री आवास योजना (शहरी) [पीएमएवाई{यू}] के अंतर्गत संबंधित शहरी स्थाानीय निकायों द्वारा नि:शुल्क ऑफलाइन एवं ऑनलाइन मांग सर्वेक्षण किया जाता है। पात्र लाभार्थियों द्वारा स्वयं भी मंत्रालय की वेबसाईट के माध्यम से ऑनलाइन पंजीकरण किया जा सकता है । राज्यों / संघ राज्य क्षेत्रों की सरकार द्वारा कॉमन सर्विस सेंटर के माध्यम से भी पंजीकरण की सुविधा नाम मात्र की लागत रूपये 25/- (वस्तु एवं सेवा कर अतिरिक्त) पर उपलब्ध कराया जा रहा है l सर्व साधारण को यह भी सूचित किया जाता है कि इस मंत्रालय ने पीएमएवाई(यू) मिशन के अंतर्गत किसी प्रकार का लाभ प्राप्त करने के लिए किसी निजी संस्थान अथवा व्यक्ति को धनराशि एकत्र करने हेतु प्राधिकृत नहीं किया है । नागरिकों को यह परामर्श दिया जाता है कि वे इस संबंध में किसी प्रकार का संदेह होने के मामले में निम्नलिखित संपर्क नम्बकर/ई-मेल आईडी पर सत्या्पन कर सकते हैं ।

श्री राज कुमार गौतम
निदेशक (एचएफए-V),
आवासन और शहरी कार्य मंत्रालय,
कमरा सं. 118, जी विंग, एन.बी.ओ. बिल्डिंग,
निर्माण भवन,
नई दिल्ली-110011
दूरभाष -011-23060484, 011-23063285

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