Exploring the Idea Behind Pradhan Mantri Awas Yojana- Its Features & Benefits

In a country as diverse and dynamic as India, ensuring adequate and affordable housing for all its citizens is a monumental challenge. Recognizing this, the Indian government unveiled the Pradhan Mantri Awas Yojana (PMAY) in 2015, a visionary housing initiative that transcends conventional boundaries. Pradhan Mantri Awas Yojana benefits all Indians and represents an audacious step towards achieving the audacious goal of ‘Housing for All’ by 2024.

This formidable endeavor not only seeks to bridge the housing gap but also tackles the complex web of socioeconomic disparities that plague the nation. PMAY is more than just bricks and mortar; it is a beacon of hope, a catalyst for change, and a testament to the government’s unwavering commitment to uplifting the lives of millions.

We are here to inform you of the intricate tapestry of PMAY, unraveling its features and the profound impact it exerts on the lives of individuals and families from diverse walks of life.

Pradhan Mantri Awas Yojana Features

The PMAY scheme is charcterised by various different caveats that intend to address the diversity of Indians looking to buy new homes or renovate their existing ones. Follow are some o the most pertinent features of the Pradhan Mantri Awas Yojana:

  • Targeted Beneficiary Groups

PMAY aims to cater to economically weaker sections (EWS), low-income groups (LIG), and middle-income groups (MIG) in both urban and rural areas. This broad spectrum of beneficiaries ensures inclusivity in housing.

  • Credit-Linked Subsidy Scheme (CLSS)

PMAY operates through the CLSS, where eligible beneficiaries can avail of interest subsidies through their home loan lenders, reducing the overall loan burden.

  • Income Criteria

The income criteria for each category (EWS, LIG, MIG) are defined to ensure that the benefits are directed towards those who genuinely require assistance.

  • Tenure of Loan Subsidy

The subsidy on home loan interest is provided for a specific tenure, typically 20 years or the actual tenure of the loan, whichever is lower.

  • Beneficiary Selection Process

The selection of beneficiaries is done through a transparent and fair process, often involving online applications and verification to ensure that deserving individuals and families receive assistance.

  • Geographical Coverage

PMAY is divided into two primary components – PMAY Urban and PMAY Gramin – to cater to the distinct housing needs of both urban and rural areas.

  • Enhanced Transparency

The application process and allotment of houses under PMAY are transparent and can be tracked online, reducing the chances of corruption and favoritism.

  • Financial Inclusion

Beneficiaries are required to have a bank account, which not only facilitates the disbursement of subsidies and loans but also encourages participation in the formal banking system. 

Pradhan Mantri Awas Yojana Benefits

Now, coming to the meat of the matter, let us discuss the pradhan mantri awas yojana benefits:

1. Affordable Housing for Everyone

The most prominent benefit of PMAY is its mission to provide affordable housing to all sections of society. The scheme offers financial assistance and subsidies, making it easier for individuals and families to own their own homes. The subsidized interest rates on home loans significantly reduce the financial burden of purchasing or constructing a house.

2. Interest Subsidy

PMAY provides an interest subsidy on home loans, with rates ranging from 3% to 6.5%, depending on the income category. This means that beneficiaries can avail of lower interest rates, reducing the overall cost of their home loans and making homeownership more accessible.

Income SlabInterest Rate Subsidy
Economically Weaker Section (EWS)6.50%
Lower Income Group (LIG)6.50%
Medium Income Group (MIG-I)4.00%
Medium Income Group (MIG-II)3.00%

3. Empowering Women

The scheme empowers women by offering additional benefits and incentives if the property is registered in the name of a female family member. This encourages women to become homeowners and promotes gender equality in property ownership.

4. Employment Generation

The construction and real estate sectors receive a significant boost through PMAY. As more houses are constructed and demand for affordable housing rises, it leads to increased economic activity. This, in turn, creates job opportunities and contributes to economic growth.

5. Inclusive Growth

PMAY promotes inclusive growth by reaching out to individuals and families who were previously excluded from the formal housing market due to financial constraints. The scheme helps bridge the gap between various income groups and provides equal opportunities for housing.

6. Customized Housing Solutions

The scheme offers flexibility in terms of housing solutions. Beneficiaries can choose to purchase a ready-built house, construct a new one, or renovate and expand an existing one, depending on their needs and preferences.


The Pradhan Mantri Awas Yojana is a transformative initiative that has made homeownership a reality for millions of Indians who previously struggled to afford a house. With its focus on affordable housing, interest subsidies, women’s empowerment, employment generation, and financial inclusion, PMAY is not just a housing scheme but a comprehensive approach to improving the lives of citizens. As the government continues to work toward its goal of ‘Housing for All,’ the benefits of PMAY will continue to positively impact the lives of countless families across the nation.


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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