Everything about the Pradhan Mantri Awas Yojana (PMAY)

With barely a few months left to complete the ambitious target under the government’s flagship Pradhan Mantri Awas Yojana (PMAY), there are serious apprehensions over how prime minister Narendra Modi would fulfil his promise to provide housing to every Indian by 2022. Housing News tracks the progress of the scheme, once touted to end housing shortage in India through a unique decentralised approach.

What is Pradhan Mantri Awas Yojana or PMAY?

Even though successive governments at the centre have been launching schemes meant to solve India’s housing problem since the 1990s (for example, the Indira Awas Yojana of 1990 and the Rajiv Awas Yojana of 2009), it was the prime minister Narendra Modi-led government that made a rather bold move to announce a decentralised programme in 2015, under which the government promised to provide housing to every citizen in India. We know this grand scheme as the Pradhan Mantri Awas Yojana or PMAY.

Launched on June 1, 2015, the PM Awas Yojana targets to eliminate India’s housing shortage by focusing on urban, as well as rural areas, thus, having its two components – PMAY Urban and PMAY Rural – which are formally known as the Pradhan Mantri Awas Yojana-Shahri and the Pradhan Mantri Awas Yojana-Gramin.

PMAY Gramin aka PMAY Rural

To address the housing shortage in rural areas, where a large part of India’s population still lives, in spite of the tremendous urbanisation in this agriculture-centric economy, the union government restructured the Indira Awas Yojana (IAY) into the Pradhan Mantri Awas Yojana-Gramin (PMAY-G), with effect from April 1, 2016, after certain gaps were identified during the concurrent evaluations and the performance audit by the Comptroller and Auditor General of India (CAG) in 2014.

The PMAY-G programme aims to replace the kuccha homes (dwellings made of mud, using straw-like materials for thatching, which are not appropriate to live in, in extreme weather conditions) in India’s villages, with pucca homes (dwellings made of enduring materials like brick, cement and iron, etc., which provide protection against all weather and which have a long life span).

Number of homes built under PMAY Gramin

According to data provided by the Housing Ministry in 2019, it takes 114 days on an average, to construct a house under this scheme. So far, 1.26 crore houses have already been built across India under the PMAY-G scheme.

Under the PMAY-G, a beneficiary is given 100% grant of Rs 1.20 lakhs in plain areas and Rs 1.30 lakhs in hilly states, north-eastern states, difficult areas, Jammu and Kashmir and Ladakh, etc., to build a pucca house. The minimum size of the houses to be built under the PMAY-G scheme has been fixed at 25 sq metres.

Beneficiaries of the PMAY-G are also provided support of unskilled labour wages under the MGNREGS (Mahatma Gandhi National Rural Employment Guarantee Scheme) and an additional assistance of Rs 12,000 for construction of toilets under the Swachh Bharat Mission-Gramin (SBM-G).

PMAY Shahri aka PMAY Urban

Launched on June 25, 2015, the PMAY Urban mission aims to end housing shortage in India’s urban areas, by ensuring a pucca house to all eligible households by 2022, when India completes 75 years of its independence. All in all, the government plans to build 20 million homes under the PMAY-U mission.

Number of homes sanctioned under PMAY-U till 2021

Till June 2021, the total number of sanctioned houses under the PMAY-U stood at 112.4 lakhs and the ground work for 82.5 lakh units had been laid. Of this, 48.31 lakh homes have been completed/delivered. The total investment under the PMAY-U is Rs 7.35 lakh crores, which has central assistance of Rs 1.81 lakh crores, of which funds to the tune of Rs 96,067 crores has been released.

Phases of the Pradhan Mantri Awas Yojana (PMAY)

The scheme will be executed in three phases:

Source: Housing Ministry

Pradhan Mantri Awas Yojana beneficiaries 2021-22

The beneficiaries under the PMAY list are divided into four categories, based on the annual income of the household.

Source: Housing Ministry

Who can be a beneficiary of the PMAY scheme?

• A family of husband, wife and unmarried children are considered a household, according to the parameters set under the Pradhan Mantri Aawas Yojana. A beneficiary applying for benefits under this scheme should not own a pucca house, either in his name or in the name of any member of his family, in any part of India.
• People with a pucca house of less than 21 sq metres may be included under enhancement of the existing house.
• Adult earning members of a family are considered a separate household and thus, a beneficiary of the scheme, irrespective of their marital status.
• In the case of married couples, either of the spouses or both together in joint ownership, will be eligible for a single house, provided they meet the income eligibility criteria of the household under the scheme.
• The beneficiaries from the EWS category are eligible for assistance in all four verticals of the missions, whereas the LIG/MIG category is eligible under only the CLSS component of the mission.
• People belonging to the SC, the ST and the OBC categories and women belonging to the EWS and the LIG are also eligible to avail of benefits under the Pradhan Mantri Awas Yojana.

Carpet area limit under PMAY for beneficiaries

The carpet area of houses under the PMAY scheme should be between 30 and 60 sq metres for beneficiaries belonging to the EWS and LIG categories. The carpet area of a house under the PMAY scheme should be up to 160 sq metres for MIG-I beneficiaries and up to 200 sq metres for MIG-II beneficiaries.

Source: Housing Ministry

Under the government’s rules, carpet area is defined as ‘the net usable floor area of an apartment, including the area covered by internal partition walls of the apartment but excluding the area covered by the external walls’.

To have a clearer understanding of the term, read our guide on carpet area.

Components/verticals of PMAY

The ambitious target under the Prandhan Mantri Awas Yojana to provide ‘Housing for all by 2022’ is envisaged to be achieved through four verticals of the scheme. These include:

1. In-situ Slum Redevelopment (ISSR): Stands for rehabilitation of slums by building houses through private participation for the eligible slum dwellers on the land under the slums.
2. Credit-Linked Subsidy Scheme (CLSS): Provides for central subsidy on home loans of between Rs 6 lakhs and Rs 12 lakhs at lower rates of interest, for the construction of new homes or renovation of existing homes.
3. Affordable Housing in Partnership (AHP): States to build affordable housing projects with central assistance of Rs 1,50,000, either through central agencies or in partnership with the private sector for the EWS category.
4. Beneficiary-led individual house construction/enhancements (BLC): Makes provisions that people belonging to the EWS category can either construct a new house or enhance the existing house on their own with central assistance of Rs 1,50,000.

PMAY Credit-Linked Subsidy Scheme (CLSS)

Under the Credit-Linked Subsidy Scheme (CLSS), borrowers can get a certain amount from their overall home loan at subsidised rates, depending on the buyer category they fall in.

PMAY interest subsidy under CLSS

Source: Housing Ministry

1. Note that any additional loans beyond the subsidised loan amount, will be at non-subsidised rates.
2. Also note that the loans should have been used either for purchase of an under-construction property or from the secondary market or to construct your own home.
3. Under the PMAY guidelines, the house bought by availing of a loan under this scheme, should be in the name of the woman of the household for the EWS and LIG categories. Ownership by women is not mandatory in case a unit is being developed using a land parcel.

PMAY subsidy calculator

Using the PMAY subsidy calculator at the official portal, https://pmayuclap.gov.in/content/html/Subsidy-Calc.html, you can know the exact amount of money you will receive from the government as the subsidy under the CLSS. To calculate the amount, you will have to key in details like your annual income, loan amount, loan tenure, type of units (whether pucca or kuccha), ownership type (women ownership is a must in EWS and LIG homes) and area of the unit.

Apart from displaying the subsidy amount, the page will also display the subsidy category, i.e., EWS, LIG, MIG-1 or MIG-2.

Subsidy amount under PMAY for various categories

Depending on the category they come from, borrowers get different subsidies on their housing loans under the PMAY CLSS.

Source: Housing Ministry

What is the maximum subsidy you can get under PMAY?

The maximum subsidy under the PMAY scheme is Rs 2.67 lakhs (Rs 2,67,280 to be exact).

PMAY home loan subsidy benefit timeline

For the EWS and LIG categories, the subsidy benefit is available on home loans that are disbursed on or after June 17, 2015. In case of MIG-1 and MIG-2 categories, the subsidy benefit is available on home loans that are disbursed on or after April 1, 2017.

How the subsidy under PMAY reaches you?

Once your application for subsidy under the PMAY programme is approved, funds are transferred from the central nodal agency (CNA) to the bank (referred to as prime lending institutions or PLI in government documents) from where the beneficiary has borrowed his home loan. The bank will then credit this amount to the home loan account of the borrower. This money will then be deducted from your outstanding home loan principal. So if you have received Rs 2 lakhs as the PMAY subsidy and your outstanding loan amount is Rs 30 lakhs, it would reduce to Rs 28 lakhs after the subsidy.

See also: PMAY: How does the credit-linked subsidy scheme for EWS and LIG work?

Helpline numbers to inquire about CLSS

NHB toll-free number

1800-11-3377

1800-11-3388

HUDCO toll-free number

1800-11-6163

How to apply for the PM Awas Yojana online in 2021?

First of all, remember that only a candidate with an Aadhaar card can apply for the benefits of the PMAY scheme. To apply online, keep your Aadhaar number handy and visit the PMAY portal at https://pmaymis.gov.in.

On the homepage, click on the ‘apply online’ option under the ‘citizen assessment’ tab. Now, select one among the four verticals for which you want to apply.

If you are applying for the CLSS subsidy, your application must be submitted to your home loan provider.

How to apply offline for PMAY in 2021?

Eligible candidates can obtain and fill forms in this regard available at common service centres (CSCs). They have to pay a nominal fee of Rs 25 plus GST on purchase of the PMAY subsidy form. CSCs are the access point to avail of essential public utility services in rural parts of India.

Last date to apply for PMAY CLSS subsidy

In May 2020, finance minister Nirmala Sitharaman said the last date of the Pradhan Mantri Awas Yojana Credit-Linked Subsidy Scheme for the MIG-1 and MIG-2 categories had been extended till March 31, 2021. For the LIG and EWS categories, however, the last date is March 31, 2022.

Time taken to get the subsidy amount from PMAY

It takes nearly three to four months for an application to be processed.

Can existing home loan borrowers get subsidy under PMAY CLSS in 2021?

In case they meet the terms and conditions, home buyers who are currently servicing a home loan, can avail of the PMAY CLSS subsidy in 2021. However, one must also recall that the subsidy benefit is available on home loans that are disbursed on or after June 17, 2015, if the borrower is from the EWS or LIG categories. In case of MIG-1 and MIG-2 categories, the subsidy benefit is available on home loans that are disbursed on or after April 1, 2017.

PMAY home loan: Important points to remember

1. All home loan accounts under the PMAY scheme will be linked to the Aadhaar numbers of the beneficiary.
2. The subsidy is available for a maximum tenor of 20 years only.
3. The lender from where you have taken a home loan will charge an interest rate that is prevailing at the bank.
4. If you switch your lender to avail of benefits of low interest rates, even though you have already availed of the interest subvention benefit under the CLSS, then, you will not be eligible for the interest subvention benefit again.

How to check PMAY subsidy status?

You can check your PMAY application status by following some simple steps. To check your PMAY status online, read our step-by-step guide on How to track your PMAY application status?

How to download the PMAY application form?

Visit the official website of the and click on the ‘Citizen Assessment’ option. From the drop-down menu, select ‘Track Your Assessment Status’.

Once you click on this option, you will get the Track Assessment Form. Select either ‘By Name, Father’s Name and Mobile Number’ or ‘By Assessment ID’.

Enter the required details and click on ‘Submit’ to access the application form. Once the form appears on the screen, click on ‘Print’.

Key facts about PMAY

Full form of CNAs in PMAY context

The term CNA stands for central nodal agency. In case of PMAY, National Housing Bank (NHB), HUDCO and SBI have been appointed as the central nodal agencies.

Process to get the assessment ID for PMAY

The assessment ID for the PMAY is generated by the official PMAY portal, after an applicant successfully completes the registration process. This ID is used to track the status of the application.

Banks eligible to provide PMAY home loan

A large number of banks, housing finance companies, regional rural banks, cooperative banks and non-banking finance companies (NFCs) have tied up with the central nodal agencies, HUDCO, SBI and NHB, to offer home loans under various verticals of the PMAY. Formally christened as the primary lending institutions (PLIs) under the official PMAY documentation, these financial institutions, which are as large as 244 in number according to official figures provided in 2017, also offer individual home buyers with the credit-linked subsidy, among other loans under the programme. Listed below are the top state-run and private lenders offering credit subsidy on home loans under the PMAY programme.

Top public banks from where you can get PMAY subsidy

Top private banks from where you can get PMAY subsidy

List of state-level nodal agencies for PMAY-U

(Source: PMAY website)

PMAY: Latest news updates

Government should relaunch PMAY with mandatory insurance cover: CII

July 26, 2021: Amid concerns over the Coronavirus pandemic and its increasing death toll, industry body CII has demanded that the government relaunched the PMAY, with mandatory life insurance, to make sure family members of the prime borrower do not have to suffer, in case of the borrower’s death or disability.

“There is a need for a relaunch of the PMAY scheme, with an in-built credit-linked insurance or a mandatory life insurance for all borrowers under the PMAY scheme, to ensure that the intent of providing housing for all does not take a hit due to death or disability of the primary borrower. The family should inherit a home and not a loan,” CII director-general Chandrajit Banerjee said.

With a tremendous increase in mortality rate due to the COVID-19 situation, the importance of protection to families becomes paramount, as all sections of society struggle to meet medical costs, unemployment and inflationary pressures, the CII D-G said, adding that an in-built insurance cover under the PMAY loans would the plug the inherent lacuna of risk-protection, with minimum additional disruptions.

As on July 25, 2021, the death toll from the Coronavirus pandemic in India stood at 4,20,967.

Home loans being secured assets, banks and financial institutions have protection, in case the borrower passes away since they can repossess the property to recover the losses. Home buyers and their families are, on the other hand, left to fend for themselves in case of loss of life or livelihood.

“This also means that the intended long-term benefit of the scheme is not fully utilised and instead of providing housing for all, the bereaved families may not have a house and may slide further down the economic ladder, while lenders/ banks may be left behind with some NPAs and recoveries having a cascading effect on economic growth,” Banerjee added.

He suggested that insurance companies could be brought on board, to provide loan cover with their partner banks, by charging standard premium rates. The home loan insurance, which would be equal to the loan amount taken by the borrower, should be offered to the borrower at the start of the home loan period, he added further.

PMAY way behind schedule: ICRA

July 12, 2021: The government would have to scale up efforts and increase monetary support, to meet the ambitious target it has set for itself under the Housing for All by 2022 programme, rating agency ICRA said, on July 12, 2021. Implementation of the government’s PMAY scheme is running behind schedule in spite of the scaled-down targets, it pointed out.

Under the Pradhan Mantri Awas Yojana, the government had initially set a target of constructing 50 million houses by 2022. Of these, 30 million units were meant to be built under PMAY Gramin and 20 million under PMAY Urban. Later, the centre set a scaled down, near-term target of constructing 21.4 million houses under the PMAY-Rural and 11.2 million unnits under PMAY Urban by 2022. However, it sanctioned 19.55 million houses and 14.16 million have been completed under the PMAY-R until April 2021. This implies completion of 67% of the revised target and 72% of the sanctioned houses.

Under the PMAY-U, all the 11.2 million units have been sanctioned Completed units stand at 4.8 million houses, translating to only 43% of the near-term target, as well as the sanctioned units.

“A significant pick-up in the implementation pace for both, PMAY-U and PMAY-R, will be required to achieve the Housing for All target by 2022,” ICRA assistant vice-president and sector head, Kapil Banga said.

Apart from the fact that the Coronavirus pandemic is impacting execution of the government’s flagship programme, budgetary support for the PMAY has also reduced, acting as a dampener. The allocation for the PMAY-U in the budget was reduced to Rs 8,000 crores for FY 2022, against a revised estimate of Rs 21,000 crores for FY 2021. The allocation for the PMAY-R for FY2022 on the other hand has remained at Rs 21,000 crores, in line with the revised estimate and the budget estimate for FY 2021.

“Out of the required Rs 4.70 lakh crores, Rs 2.97 lakh crores has been incurred in the last five years. However, a whopping Rs 1.71 lakh crores (37% of the expenditure) would be required to be incurred within the next 1.5 years, to complete construction of the remaining units by 2022, to meet the near-term scaled down target,” Banga added.

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