A Comprehensive Guide to Availing Government Housing Schemes in India

Owning a house is a dream everyone looks ahead to fulfill. However, considering the constantly rising price of houses, it can be a difficult feat to achieve and can require decades of savings or EMI-paying. Therefore, government housing schemes are crucial and can help everyone to purchase their dream abode. Accordingly, the Government of India has launched various housing schemes to provide affordable housing to the poor and middle class. These schemes offer subsidies on interest rates, down payments, and other costs associated with buying a home.

Here are some of the different government housing schemes currently active in India:

  1. Pradhan Mantri Awas Yojana (PMAY): PMAY is the flagship housing scheme of the Government of India. It aims to provide affordable housing to all eligible families in the country. PMAY is divided into two parts: PMAY-Urban and PMAY-Gramin.
  • PMAY-Urban: PMAY-Urban is for families living in urban areas. It offers subsidies on interest rates and down payments for loans taken to buy a home. The subsidy amount varies depending on the income category of the family.
  • PMAY-Gramin: PMAY-Gramin is for families living in rural areas. It provides financial assistance to eligible families to construct or renovate their homes. The assistance amount is Rs. 1.25 lakh for plain areas and Rs. 1.5 lakh for hilly and difficult areas.
  1. Rajiv Awas Yojana (RAY): RAY was launched in 2009 to provide affordable housing to slum dwellers. It aims to bring all illegal constructions within a formal system and to encourage slum-free cities. RAY offers subsidies on interest rates and down payments for loans taken to buy a home.
  1. State- and Territory-Level Housing Schemes: Many state governments also have their own housing schemes for different income groups, such as MHADA (Maharashtra Housing Development Scheme) and DDA (Delhi Development Authority) Housing Scheme. These schemes offer subsidies and other benefits to eligible families to buy a home.

What is the Pradhan Mantri Awas Yojana?

The Pradhan Mantri Awas Yojana (PMAY) was launched in 2015 with the goal of providing affordable housing to all eligible families in India by 2022. However, due to a number of factors, including the COVID-19 pandemic, the government has revised the deadline to 2024. Under this ambitious initiative, the government aimed to provide affordable housing options to the economically weaker sections, low-income groups, and middle-income groups in both urban and rural areas. So, let us understand in further detail, the benefits of the Pradhan Mantri Awas Yojana and how you can apply for this scheme.

  • Affordable Housing: PMAY offers subsidized interest rates on home loans, making it more affordable for eligible beneficiaries to purchase or construct their own homes.
  • Subsidized Interest Rates: The scheme provides an interest subsidy of up to 6.5% on home loans, reducing the financial burden on the beneficiaries.
  • Women Empowerment: PMAY encourages women to become homeowners by offering additional benefits and incentives if the property is registered in a female family member’s name.
  • Increased Economic Activity: The construction and real estate sectors receive a significant boost through PMAY, leading to job creation and economic growth.
  • Transparency: The application process and allotment of houses are transparent and can be tracked online, ensuring fairness and accountability.
  • Financial Inclusion: The scheme promotes financial inclusion by encouraging beneficiaries to open bank accounts, making it easier to disburse subsidies and loans.
  • Beneficiary Categories: PMAY has two primary components – PMAY Urban and PMAY Gramin – each catering to different beneficiary categories. PMAY Urban targets urban areas, while PMAY Gramin focuses on rural areas.

How to Apply for PMAY?

Applying for PMAY is a straightforward process. Here are the steps to follow:

Step 1- Eligibility Check:

Before you start the application process, make sure you meet the eligibility criteria for PMAY. The eligibility criteria may vary based on the specific component (urban or rural) and income category (Economically Weaker Section, Low-Income Group, or Middle-Income Group).

The eligibility criteria for government housing schemes vary depending on the scheme. However, some general criteria include:

  • The applicant must be an Indian citizen.
  • The applicant must be of legal age.
  • The applicant must have an annual income below a certain limit.
  • The applicant must not own any other property.

Step 2- Choose the Appropriate PMAY Component:

PMAY has two main components: PMAY Urban and PMAY Gramin. Your choice depends on whether you live in an urban or rural area. Follow the appropriate application process based on your residential status.

Step 3- Visit the PMAY Official Website:

Go to the official PMAY website (https://pmaymis.gov.in/). Access the official PMAY website to begin the application process. For those looking for specifics, here are the respective websites for both PMAY Urban and PMAY Gramin:

Step 4- Register Online

Click on the ‘Citizen Assessment’ link on the website. Under the apply online category, choose the type of loan required for your preferred property-buying needs. The options include: 

  • In Situ Slum Redevelopment (ISSR): This is to provide houses to eligible slum dwellers so as to  bring them into the formal urban settlement
  • Affordable Housing Partnership (AHP): This is for individuals looking to buy apartments/flats, already fully constructed houses. 
  • Beneficiary Lead Construction Enhancement (BLCE): This is for you if you are looking to renovate your home by taking a loan.
  • Credit Link Subsidy Scheme (CLS
  • S): This scheme provides subsidies to those taking loans for house construction.

Step 5- Provide Required Details:

Next, you will be required to provide the following details:

  • Name and Aadhaar ID (For Authentication)
  • Names of the City, District, and State you reside in
  • Present Age
  • Your Gender
  • Marital Status
  • Present Address
  • Contact Information
  • Preferred Component of Mission (for e.g., CLSS, AHP. etc.)
  • Address Information of the Property (To Buy/Construct)
  • Type of House (Kutcha/Pucca)
  • Details of Family Members
  • Joint Holder Information (If Applicable)
  • Religion and Caste
  • Bank Account Number and IFSC Code
  • Current Employment Status
  • Current Monthly Income
  • Housing Requirement (New House/ Enhancement)

You may have to supply additional information based on the type of scheme you plan to avail of.

Step 6- Submit Application

After filling in the details, accept the terms and conditions, and enter the captcha code given. Click on the ‘Save’ option in green to submit your application online. You will receive an assessment number ID for your application, make sure to copy and save it.

Step 7: Track or Edit Application:

If you want to edit or track your assessment status, you can visit the website again and use the ID given.


The Pradhan Mantri Awas Yojana is a remarkable initiative aimed at fulfilling the dream of homeownership for millions of Indians. By providing financial assistance and subsidies, the government has made owning a house a reality for many who previously found it out of reach. If you meet the eligibility criteria, follow the steps outlined above to apply for PMAY and secure your place in this visionary housing scheme. Remember, ‘Housing for All’ is not just a slogan; it’s a promise the government is working tirelessly to fulfill.


Frequently Asked Questions (FAQs):

Finnable has set a required minimum age for personal loan of 21 years for individuals to be eligible for a personal loan. This ensures that applicants have reached legal adulthood and are capable of entering into a financial agreement.

Yes, Finnable understands the financial needs of young borrowers and offers personalised loan options tailored to their specific requirements. Whether it's financing higher education, purchasing essential items, or starting a business venture, Finnable provides support to young individuals seeking financial assistance.

Borrowers nearing retirement may have unique financial needs, such as retirement planning, medical expenses, or supporting their children's education. Finnable offers personalised loan solutions that consider the specific circumstances of pre-retirement individuals, helping them meet their financial goals.

Unfortunately, no. Finnable does not, at the moment, offer any loans to senior citizens. Currently, 60 is the maximum age for personal loans set by Finnable

Other than personal loan age limits, Finnable considers various other factors for determining loan eligibility. These factors may include the applicant's income, credit score, repayment capacity, and employment stability. By assessing these aspects comprehensively, Finnable ensures that borrowers across different age groups can access the loan products that best suit their financial needs. 


Amit Arora

I am a seasoned retail banker with over 21 years of global experience across business, risk and digital. In my last assignment as Global Head Digital Capabilities, I drove the largest change initiative in the bank to deliver the end-to-end digital program with over US$1 billion in planned investment. Prior to that, as COO for Group Retail Products & Digital, I implemented a risk management framework for retail banking across the group.
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