The 'Pradhan Mantri Awas Yojana' (PMAY) is a bold new initiative by the Central government. It has a concrete effort that seem to fulfil the concept "Homes for All”

How can you purchase your dream home under this scheme? To own a home is one of the basic necessities for each and every individual. Over the past few years, the soaring property prices and interest rates have made it practically impossible for the common man to realize this particular dream. Under the Central Government, the revolutionary concept of ‘Pradhan Mantri Awas Yojana’ aims to support the common man in this regard.

Launched in 2015, June 25th to be precise, this massive-scale project is based on a blueprint that is designed to develop close to 2 crore houses by 2022. Many were sceptical about this figure and whether it could be achieved. Simply put, it’s two crore houses in 2555 days.

The target audience for this particular project: The target group for the ‘Pradhan Mantri Awas Yojana’ are individuals who belong to the EWS (Upto 3 Lakhs Annual income), LIG (3.01 to 6 Lakhs Annual Income), MIG 1 (6.01 to 12 Lakhs Annual Income) & MIG 2 (12.01 to 18 Lakhs Annual Income) segments of societies that are part of Urban India.

What are the main features of Pradhan Mantri Awas Yojana? The ‘Pradhan Mantri Awas Yojana’ is a well-thought-out project and comprises of some unique features that are aimed at making/ owning a home more affordable and practical. Here are some of the more important points of the ‘Pradhan Mantri Awas Yojana:’

  • A subsidy ranging from 1 lakh to 2.67 lakhs can be availed. Those belonging to the MIG1(upto 2.35 Lakhs), MIG 2 (upto 2.30 Lakhs) & LIG (upto 2.67 Lakhs) of the society. This is paid as a grant by the Government directly to the beneficiary's loan account.
  • An interest rate subsidy of 6.5 % for LIG, 4% for MIG1 and 3% for MIG2 could be applied by those who plan to avail loans for a period of 20 years - a drastic reduction from the standard rates offered by banks which is around 8.3 to 9%.
  • The ‘Pradhan Mantri Awas Yojana’ can be considered as a pro-women initiative as there is a preference given to women applicants under this scheme. Simply put, women applicants will be given more weightage over their male beneficiaries when it comes to availing schemes under this initiative.
  • As the ‘Pradhan Mantri Awas Yojana’ will mainly be based on designing apartment projects around the country to meet the housing demands of the common man, the ground floor of each complex will be reserved for differently abled and/or senior citizens.
  • Homes to be built under the “Pradhan Mantri Awas Yojana’ will have to follow certain specified building standards to ensure that they are constructed in-sync with the environment, or in other words, ensure that they’re eco-friendly.
  • First Home Buyers: Beneficiary families not owning a house in any part of India are only eligible to avail subsidy under this scheme.

A practical example of what the above features mean: Assume that a loan of around six lakhs for 20 years is applied for. Today’s average interest rate hovers around the 8.5% mark. A bit of math and the calculated EMI comes to around INR 5,207 per month. The same figures under the ‘Pradhan Mantri Awas Yojana’ will only cost you INR 3035 per month, a reduction of over 2000 rupees, making the dream of owning your own space a reality for those in the LIG, MIG1 and MIG2.

Some important rules that have to be noted:

1. The maximum loan amount to avail the subsidised rates are set at INR 6 lakhs for LIG, 9 Lakhs for MIG1and 12 Lakhs for MIG2.

2. For those wanting more, the market rates for home loans will have to be paid for the amount over and above.

All combined, the ‘Pradhan Mantri Awas Yojana’ has received an overwhelming response from the citizens of India. This welcome move is going to make the dream of ‘homes for all’ a reality. Visit