How has PMAY evolved over the years?

Launched on 25th June 2015, Pradhan Mantri Awas Yojana (PMAY) aims to provide affordable housing for specific sections of society. These houses will have basic amenities such as toilets, electricity connections, and clean drinking water. Home loans under the PMAY have a tenure of up to 20 years. The home loan interest rates for the PMAY scheme start at 6.50% per annum.

PMAY has significantly reduced the cost of acquiring a home for the economically weaker section of society. The scheme has changed the dynamics of the real estate market.

Here is everything you should know about PMAY and how it has evolved over the years:

PMAY Features and Benefits

  • Provides subsidized home loans with a home loan interest rate of 6.5% per annum.
  • The term of the home loan under the PMAY scheme is up to 20 years.
  • The scheme proposes the use of sustainable and eco-friendly technologies for the construction of houses.

PMAY Beneficiaries

  • Middle Income Group (MIG I) with an annual income between Rs. 6 lakhs and Rs. 12 lakhs
  • Middle Income Group (MIG II) with an annual income between Rs. 12 lakhs and Rs. 18 lakhs.
  • Lower Income Group (LIG) with an annual income between Rs. 3 lakhs and Rs 6 lakhs.
  • Economically Weaker Section (EWS) with an annual income of up to Rs. 3 lakhs
  • Scheduled Caste and Tribe (ST and SC)
  • Other Backward Classes (OBC)

PMAY Home Loan Interest Rate Subsidy

  • EWS gets a home loan interest rate of 6.5% per annum for home loans up to Rs. 6 lakhs.
  • LIG gets a home loan interest rate of 6.5% per annum for home loans up to Rs. 6 lakhs.
  • MIG I gets a home loan interest rate of 4% per annum for home loans up to Rs. 9 lakhs.
  • MIG II gets a home loan interest rate of 3% per annum for home loans up to Rs. 12 lakhs.

If you are eligible for getting the home loan subsidy, you can use the online home loan EMI calculator to know your home loan EMI.

Evolution of the PMAY

Since its launch in 2015, the PMAY has evolved with easier access and loan approval processes and has achieved some aspirational targets.

A few noteworthy signs of progress of the PMAY include:

  • The PMAY (U) has reached the one-crore milestone out of the validated demand of 1.12 crore houses in urban areas.
  • PMAY grants house ownership to the female head of the household or in the joint name of the male and female household head.
  • The implementation and the governance of the PMAY scheme are done through an end-to-end e-governance model. This solution has fastened the entire PMAY home loan and subsidy process.
  • The PMAY scheme is in convergence with other government schemes such as MGNREGS and SBM-G. The convergence enables the government to transfer the benefits seamlessly into the respective bank accounts of the beneficiaries.
  • Under PMAY, the National Technical Support Agency (NTSA) is established to monitor the construction quality and provide suggestions to beneficiaries concerning their housing design and appropriate technology for construction as per the local conditions. NTSA also helps beneficiaries in procuring raw materials.


Overall, the PMAY has been successful in achieving its objective till now. However, the aspirational target of providing houses to every homeless family in India by 2022 is yet to be accomplished. Make sure you check the eligibility requirements to qualify for this scheme and own a home of your own.

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