Benefits of Pradhan Mantri Awas Yojana

Dream of Home, made affordable for all

PMAY – Features & Benefits

Affordable Housing | Subsidised Home Loan | Construction of Pucca Houses

The Pradhan Mantri Awas Yojana (PMAY) was launched by the Government of India in 2015 with a mission of Housing for all. Under the PMAY scheme, an interest subsidy is provided on home loans to help the economically weaker sections of the society realise their dream of owning a house.

With Poonawalla Housing Finance, you can apply for a home loan under the PMAY scheme and avail of benefits of up to ₹ 2.67 lakh. It can help you reduce your home loan EMIs significantly, making your home buying decision more affordable.

Below are some prominent features and benefits of the PMAY scheme:

Housing for all
With the PMAY scheme, the Government of India plans to fulfil its mission of “Housing For All by 2022”. The beneficiaries of the PMAY scheme are divided into four groups – Economically Weaker Sections (EWS), Low Income Group (LIG), Mid Income Group I (MIG I), and Mid Income Group II (MIG II).

Credit Linked Subsidy Scheme (CLSS)
The PMAY scheme is also known as the Credit Linked Subsidy Scheme (CLSS). This is because the beneficiaries of the PMAY scheme can avail of an interest subsidy on taking home loans to purchase, construct, or renovate their house. They can apply for a home loan under the PMAY scheme with any of the banks or non-banking financial institutions providing this benefit.

Under the CLSS benefits of the PMAY scheme, beneficiaries can avail of an interest subsidy of up to ₹ 2.67 lakh on a home loan. A maximum subsidy of 6.5% per annum is allowed to the people belonging to the EWS and LIG categories. The table below depicts the subsidy benefits allowed for different category people:

Income Group EHousehold Income (per annum) Interest Subsidy (%) Maximum loan amount allowed for subsidy Max Subsidy (in Rs)
EWS and LIG Up to ₹6 lakh 6.50% ₹6 lakh ₹2.67 lakh
MIG I ₹ 6 to 12 lakh 4% ₹9 lakh ₹2.35 lakh
MIG II ₹12 to 18 lakh 3% ₹12 lakh ₹2.30 lakh

Rehabilitation of slum dwellers
Under the PMAY scheme, the Government of India has planned to construct approximately 20 million pucca houses in prominent urban areas. This is being done to rehabilitate the people living in the slum areas of the country. As per the Government data, the construction of more than 45 lakh houses has been completed till now.

A rise in living standards
The PMAY scheme has contributed immensely towards the rise in living standards of the poor people in India. By providing pucca houses with modern facilities to the slum dwellers, the Government has provided financial and social security to these people along with a quality lifestyle.

Successful leverage of land
The PMAY scheme focuses on constructing pucca houses in the areas adjoining the slum settlements. The lost value of these degraded lands has been restored with the successful implementation of this scheme.

Financial security for women
As the PMAY scheme encourages women to apply for home loans, they have a chance to secure their financial future by being homeowners. Moreover, the married men (under the EWS and LIG categories) applying for a home loan under the PMAY scheme are required to add their wives as the co-owners of their houses mandatorily.

Preferential benefits for special people
Under the PMAY scheme, senior citizens and differently-abled beneficiaries are provided with some unique benefits. For example, they get the preference of buying a house on the ground floor under this scheme. Special provisions have also been made for widows, transgender people, scheduled castes, and scheduled tribes.

Eco-friendly construction of houses
The houses constructed under the PMAY scheme are built using eco-friendly construction materials and technology. Besides building the houses with sustainable and good quality material, the developers and the builders have also been instructed to ensure minimum damage to the environment around the construction sites.

Increase in job opportunities
As the PMAY scheme involves large-scale construction of new houses and re-development of existing projects, it is expected to create ample job opportunities in the real estate sector.

Applying for Poonawalla Housing Finance Home Loan is easy. Just follow the steps mentioned below:

  • Step 1 – Visit the home loan page of our website and click on “Apply Now
  • Step 2 – Share your basic KYC details and other required documents with us
  • Step 3 – Await assessment and verification of your home loan application
  • Step 4 – You will receive a confirmation of the approval of your loan application
  • Step 5 – Your loan amount will be disbursed within 48 hours of approval

1. What are the documents required for availing of PMAY benefits?

Below are the documents you need to submit for availing of the benefits of this scheme:

  • Proof of identity and address (PAN card, Aadhar card)
  • Proof of income (IT Return, Bank statement)
  • Property documents
  • Passport size photograph
  • Cancelled cheque

2. Is there any limit on the loan amount I can borrow under PMAY?

No. There is no limit on the home loan amount you can borrow under the PMAY scheme. However, the interest subsidy is provided only on a maximum loan amount of ₹ 6 lakh for EWS and LIG, ₹ 9 lakh for MIG I, and ₹ 12 lakh for the MIG II category.

3. Can different members of the same family avail of PMAY benefits?

No, only one member of a beneficiary family can apply for the PMAY benefits. A beneficiary family consists of a husband, wife, and unmarried children. An adult earning member can be treated as a different beneficiary.

4. How will I receive the interest subsidy?

Once your home loan under PMAY gets approved, your interest subsidy will be released by the Central Nodal Agency. Once we receive your subsidy amount, we will credit it directly to your home loan account by reducing your principal loan amount.


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