Pradhan Mantri Awas Yojana (PMAY)

Pradhan Mantri Awas Yojana (PMAY) is India's flagship affordable housing scheme, running in two components: PMAY-Urban (for cities) and PMAY-Gramin (for rural areas). The urban component provides interest subsidy on home loans under the Credit Linked Subsidy Scheme (CLSS) for EWS, LIG, and MIG categories. The rural component provides financial assistance for construction or enhancement of pucca houses to homeless and kutcha house dwellers.

The subsidy structure under PMAY-Urban is significant: EWS/LIG beneficiaries receive 6.5% interest subsidy on loans up to ₹6 lakh, resulting in savings of up to ₹2.67 lakh over the loan tenure. MIG-I and MIG-II categories receive 4% and 3% subsidy respectively. All subsidies are credited upfront to the loan account, reducing your EMI from day one.

A key requirement that many applicants miss: the beneficiary family must not own a pucca house anywhere in India. Even a small share in a pucca property disqualifies the applicant. Our editorial team has reviewed eligibility criteria against the MoHUA (Ministry of Housing and Urban Affairs) official guidelines, last updated June 2026.