Pradhan Mantri Awas Yojana (PMAY) is an initiative by Government of India aims to provide direct bank subsidy via CLSS to first time home buyers.

PMAY - Prashan Mantri Awas Yojna
PMAY – Prashan Mantri Awas Yojna

Pradhan Mantri Awas Yojana (PMAY), launched in 2015, is an initiative by Government of India aims to provide affordable housing to the urban poor with a target of building 2 crore/ 20 million affordable houses by 31 March 2022. The objective is to provide dwelling units to all who doesn’t have own house in rural and urban area.

Also read > PMAY benefits for Noida- Gr Noida home buyers.

Mainly it has two components

Pradhan Mantri Awas Yojana (Urban) (PMAY-U) for the urban poor and 

Pradhan Mantri Awaas Yojana (Gramin) (PMAY-G and also PMAY-R) for the rural poor.


Under PMAY, it is proposed to build 2 crore houses for urban poor including Economically Weaker Sections and Low Income Groups in urban areas by the year 2022 through a financial assistance of ₹ 2900 crore or 2 trillion (US$29 billion) from central government.


This Mission has four categories:

  1. In-situ Slum Redevelopment with private sector participation using land as resource,
  2. Affordable Housing through Credit Linked Subsidy Scheme,
  3. Affordable Housing in Partnership with private and public sector and
  4. Beneficiary led house construction/enhancement.

Under these various categories, central assistance will be in the range of ₹1 lakh (US$1,400) to ₹2.67 lakh (US$3,300).

The middle-income earners 
The Credit Linked Subsidy Scheme (CLSS) for Middle Income Group (MIG) to be called CLSS for MIG I and MIG II, which was initially approved for implementation for the year 2017 has been extended up to 31.03.2020.

The new category MIG, introduced recently, will cover income group varying between Rs. 6.00 lakh to Rs. 18.00 lakh. The category will further comprise of two slabs; MIG – I and MIG- II.

Middle Income Group (MIG)- I will comprise of households having an annual income between Rs.6,00,001 up to Rs.12,00,000. 

And, the Middle Income Group (MIG) – II will comprise of households having an annual income between Rs.12, 00,001 up to Rs.18, 00,000. So, effectively anyone earning between Rs 6 lakh and Rs 18 lakh per annum can avail the benefits of subsidized loans provided other conditions are met. The loan tenure is unchanged, 20 years but subsidy is different as below:

Credit Linked Subsidy Scheme under PMAY
Credit Linked Subsidy Scheme under PMAY

Also read > More benefits for home buyers in 2019!

Before June 2018, carpet area was 90 sq mt for MIG I and 110 sq mt for MIG II category.


The features of Pradhan Mantri Awas Yojana are that the government will provide an interest subsidy of 6.5% on housing loans availed by the beneficiaries for a period of 20 years under credit link subsidy scheme (CLSS) from the start of a loan.

Till February 2019, Govt. has successfully constructed 1.5 crore homes under PMAY. CLSS under PMAY consider eligibility of a person if he or she doesn’t have any home or dwelling unit in his/ her name.

Eligibility criteria:

(a) Beneficiary max age 70 years,

(b) EWS (Economic Weaker Section) annual income Less than Rupees 3 Lac and

LIG (Lower Income Group) Annual Income 4,00,000 to 6,00,000 Lac INR as well as

Mid Income group since Feb 2017, and

(c) The beneficiary should not have an own dwelling unit on the name of any family member in any part of India. Means he or she should be first time home buyer or home loan borrower.

The houses given under this scheme will be owned by females or jointly with males. But the home buyer should not own any property in his/ her name or should be a first time home buyer. Earning children or individuals or couples who don’t own any property are eligible for CLSS under PMAY. If a person wan to construct own house then also PMAY benefits are available.