The Pradhan Mantri Awas Yojana Scheme – Explained

The Pradhan Mantri Awas Yojana Scheme – Explained

What is the scheme of Pradhan Mantri Awas Yojana? What does it cover? How does it benefit the people? These are some questions that we will be answering in this article. Read on to know more about Pradhan Mantri Awas Yojana Scheme and how to apply under it.

All India Housing

Pradhan Mantri Awas Yojana (PMAY) is a scheme of Government of India to provide housing for all by 2022. It will be implemented in three phases, covering all 498 districts in India. The first phase has been rolled out from 1 April 2016 and it will end on 31 March 2019. The second phase will start from 1 April 2019 and it will end on 31 March 2021 while third phase starts from 1 April 2021 and ends on 31 March 2023.

Credit-Linked Subsidy

Apart from providing interest-free credit for all new homes, anyone who buys a house under PMAY can avail of a subsidy worth 1.2 times their income, capped at Rs 2 lakh. The government may pay up to 30 percent of that subsidy in advance, while you’ll make monthly EMI payments to your bank on that advance.

Affordable housing in rural areas

Rural housing plays a major role in reducing poverty by providing rural people with a home. The Indian government, under PMAY-Gramin (rural), is trying to address that issue. The scheme will provide financial assistance to BPL (below poverty line) and APL (above poverty line) category families for construction of houses and also for slum redevelopment. Under PMAY-Gramin, there are four components: credit linked subsidy scheme for affordable housing; interest subsidy scheme for affordable housing; rental housing scheme; and beneficiary led individual house construction/ enhancement under MUDRA loan. For each component, a separate corpus has been created as per requirement. In order to achieve its goal of ‘Housing for All’ by 2022, India needs approximately 1 crore new houses every year.


The upper income limit for individuals living in rural areas is Rs 2.5 lakhs per annum and Rs 3 lakhs per annum for urban areas. Individuals with a family of 4 earning more than 6.5 Lakhs, will not be eligible to avail benefits under PMAY- Urban. For individual beneficiaries, there are two categories: Economically Weaker Section (EWS) and Low Income Group (LIG). EWS includes families whose annual income does not exceed Rs 60,000 while LIG includes families whose annual income does not exceed Rs 75,000. Under EWS category, it is mandatory that at least one member from a family belongs to SC/ST/OBC or Minorities or has disabilities.

Beneficiary Registration Number (BRN)

Beneficiary registration number, or BRN is a 12-digit alphanumeric identification number that will be allotted to every beneficiary of PMAY(U). This BRN is provided to every beneficiary to get eligibility information as well as amount sanctioned under PMAY(U) online. A unique 12 digit Unique Beneficiary Identification Number (UBIN) consisting of letters and numbers will be given to each Beneficiary while registering.

More detailed information on PMAY

Here’s a video on Pradhan Mantri VideoAwas Yojana scheme to help you understand it better: Video Link . The Pradhan Mantri Awas Yojana (PMAY) was launched by Prime Minister Narendra Modi in June 2015. It is an ambitious scheme that aims to provide housing for all urban and rural poor by 2022. The official website of PMAY says that under PMAY, each family will be provided with a dwelling unit of minimum 300 sq ft carpet area with basic amenities like water connection, toilet, kitchen and electricity connection.

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