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What Is Pradhan Mantri Awas Yojana And How To Apply

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By Author: Arjit Chalmela
Total Articles: 14
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One of the beneficial housing schemes launched by the Government of India in 2015 with an aim of providing affordable housing for all was the Pradhan Mantri Awas Yojana. The scheme is for the benefit of economically weaker sections, lower income groups, urban poor and rural poor.
There are four different schemes which form a part of the Pradhan Mantri Awas Yojana:

In Situ Slum Development:

In this, private developers join hands with the State Governments to provide affordable housing to slum dwellers.

Credit Linked Subsidy:

It is direct subsidy for loans availed from notified organisations. Economically Weaker Sections, Lower Income Groups and Middle-Income Groups can apply to National Housing Board and Housing and Urban Development Corporation (HUDCO) for interest subsidy loans. The loans for economically weaker sections have subsidy up to 6.5 per cent for an amount of Rs. 6 lakh. Interest subsidy of 4 per cent for loans up to Rs. 9 lakh for Middle-Income Groups whose income is up to Rs. 12 lakh. Subsidy of 3 per cent for loans up to Rs. 12 lakh to type two Middle-Income Groups with income from Rs. 12 to Rs. 18 lakh.

Affordable Housing in Partnership:

As a part of this scheme, State Governments offer subsidy per flat to developers to build affordable housing and sell 50 per cent of the housing to people from economically weaker sections and lower income groups. The subsidy directly reduces the cost of the house for buyers.

Beneficiary led construction:

This scheme is meant to provide benefits to economically weaker groups to enhance and alter their existing houses. It also provides subsidy for people to construct houses on their lands. The subsidy is provided in phases depending upon construction for example, 10 per cent of the amount is paid on digging the foundation, 15 per cent provided on construction of plinth, etc. This ensures the beneficiary does not use the funds for any other purpose.
How to apply for Pradhan Mantri Awas Yojana? There are two ways:


It is possible to apply directly online on the PMAY website. Depending on the type of benefit applied for, there are different forms that must be filled up. Having an Aadhaar card is mandatory for filling up the form. Beneficiaries opting for the CLSS can directly approach empanelled banks who provide home loans. The subsidy gets paid to the bank directly and reduces the loan outstanding amount for the borrower. Before you apply for them, check whether you are eligible for CLSS and apply accordingly.


It is possible to apply for the PMAY scheme offline by filling up a form in the Common Service Centre (CSC) operated by the State Governments. Offline forms can be filled up for Rs. 25 plus the GST. Except for the CSC, nobody is authorised to operate these services.
The Pradhan Mantri Awas Yojana application procedure is simple if done online on the scheme website.

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