Being able to afford a house is a dream for many, especially for people belonging to the economically weaker sections of society. Pradhan Mantri Awas Yojana - Urban and Gramin (PMAY-U) and PMAYG help people buy their own houses with the help of subsidies on loan interest. This scheme has supported millions of households and made homeownership possible through subsidies and the PMAY Scheme Home Loan structure. After covering Pradhan Mantri Awas Yojana-Gramin, let us understand the view for PMAY Urban development.
Overview
The table below highlights the key insights of the Pradhan Mantri Awas Yojana Urban:-
| Name of the scheme | PMAY |
|---|
| Full form | Pradhan Mantri Awas Yojana |
| PMAY scheme launch date | 2015 |
| Objective | To provide affordable housing to the urban and rural poor. |
| Target year | 2024 (extended from 2022) |
| Implementing agency | Ministry of Housing and Urban Affairs (MoHUA) |
| Application process | Online |
What Is The Pradhan Mantri Awas Yojana?
The Pradhan Mantri Awas Yojana (PMAY) is a flagship initiative launched by the Government of India to address the country's housing needs, aiming to provide affordable housing to the urban and rural poor. The scheme, which began on 25 June 2015, is managed by the Ministry of Housing and Urban Affairs (MoHUA) and is structured to ensure that every citizen has access to a permanent house by the year 2022. It has two components: PMAY-Gramin (PMAY-G), focusing on rural areas, and PMAY-Urban (PMAY-U), focusing on urban areas.
1. Pradhan Mantri Awas Yojana-Gramin (PMAY-G)
Definition: PMAY-Gramin (previously known as Indira Awas Yojana) focuses on providing housing to the rural population, specifically the homeless and those living in dilapidated houses in rural areas. The aim is to ensure that every household in rural India has access to a pucca house with basic amenities. Citizens planning to buy or build their first home can use the PMAY scheme benefits and apply through the PMAY apply online facility available on the official platform.
Key Features:
| Key Features/Benefits | Details |
|---|
| Eligibility Criteria | Beneficiaries are identified based on data from the Socio-Economic Caste Census (SECC). |
| Financial Assistance | The government provides financial support of ₹1.2 lakh for plain areas and ₹1.3 lakh for hilly, difficult, and northeastern areas for home construction. |
| Essential Facilities | Houses must include basic facilities such as toilets, electricity (under Saubhagya Yojana), and clean cooking fuel (under Ujjwala Yojana). |
| Swachh Bharat Abhiyan | Ensure cleanliness and hygiene in homes |
| Convergence with MGNREGA | Provides labour support through MGNREGA for the construction of homes, ensuring employment for local workers. |
| Focus on Rural & Underprivileged | Aims to uplift economically weaker sections in rural areas, especially in difficult terrains. |
| Empowerment & Social Welfare | Promotes social inclusion and empowerment of the elderly, women, and underprivileged groups. |
| Support for Special Areas | Special attention is given to hilly, difficult, and northeastern regions with additional benefits. |
2. Pradhan Mantri Awas Yojana-Urban (PMAY-U)
Definition: PMAY-Urban is designed to address the housing needs of the urban poor, focusing on individuals from economically weaker sections (EWS), low-income groups (LIG), and middle-income groups (MIG). The objective is to provide affordable housing for all urban citizens, including those living in slums.
Key Features:
| Key Features/Benefits | Details |
|---|
| Interest Subsidy | Offers interest subsidies of up to 6.5% under the Credit-Linked Subsidy Scheme (CLSS) for home loans up to ₹6 lakh. |
| Target Areas | Focuses on addressing housing shortages in urban areas, particularly in slum areas and for economically weaker sections. |
| Income Criteria | Beneficiaries must meet specific income criteria to qualify for the subsidies under the scheme. |
| In-Situ Slum Redevelopment | Provides redevelopment solutions for in-situ slums, ensuring better living conditions. |
| Credit-Linked Subsidies | Provides subsidies on home loans for economically weaker sections and middle-income groups. |
| Affordable Housing in Partnership | Promotes affordable housing through public-private partnerships, ensuring access to affordable housing units. |
| Beneficiary-Led Individual House Construction | Offers subsidies for individual house construction to beneficiaries who already own land but lack resources for construction. |
| Subsidy for EWS, LIG, and MIG Categories | Ensures that the Economically Weaker Section (EWS), Low Income Group (LIG), and Middle Income Group (MIG) categories are covered under the subsidy scheme. |
Objectives Of PMAY-U
The Pradhan Mantri Awas Yojana (PMAY) has several key objectives aimed at providing affordable housing to people in both rural and urban areas across India. The programme continues to evolve, and the government has extended support under the PMAY scheme 2025, ensuring wider coverage for new applicants. Here is an expanded version of the objectives of the PMAY:
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It is a social welfare scheme launched to provide shelter to the poor in rural areas across India.
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The houses allotted under this scheme are given in the name of women usually, or they are co-jointly owned by husband and wife.
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MoHUA Mission addresses the urban housing shortage.
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The beneficiaries include the Economically Weaker Section (EWS)/ Low Income Group (LIG) and Middle Income Group (MIG) categories, by ensuring pucca housing to all households.
What Are The Benefits Of Pradhan Mantri Awas Yojana?
Pradhan Mantri Awas Yojana (PMAY) is a government scheme that helps people, especially those who cannot afford to buy or build their own homes. These benefits are especially helpful for families seeking a PMAY scheme home loan, as the reduced interest burden makes long-term repayment easier. Let's understand these benefits in simple language:
1. Loans at Low Interest Rates
Under the PMAY scheme, people can get home loans at a lower interest rate than what banks usually offer. This means that if you take a loan to buy or build a house, you will have to pay less money back to the bank. The government provides a subsidy on the interest, which makes the loan cheaper for you. This is a big help because paying less interest means more savings.
2. Reduces the Burden of Interest Payments
Normally, when you borrow money from a bank, you have to pay a lot of extra money as interest over time. However, with PMAY, because of the subsidy, you don't have to worry about paying high interest. This reduces the burden on your pocket, making it easier to repay the loan.
3. Makes Buying a House Affordable
Many people in India, especially those living below the poverty line or with a low income, find it very hard to buy a house. PMAY is designed to make housing more affordable for everyone. With low-interest loans and financial assistance, buying or building your own house becomes possible, even for families who don’t earn a lot.
4. Financial Help to Build or Buy a House
For those who want to build or buy a house, the government provides financial help through this scheme. Whether you are buying your first home or building a new one, the PMAY Scheme offers support by making it easier for you to arrange the money required for the house.
5. Covers Various Income Groups
The PMAY scheme is inclusive, meaning it is designed to help different groups of people. It has separate categories for the Economically Weaker Section (EWS), Low-Income Group (LIG), and Middle-Income Group (MIG). This ensures that the scheme is available for families with low or middle incomes, not just the poorest. It means a wide range of people can benefit from it.
6. Helps Reduce Slums
By offering affordable housing, PMAY aims to reduce the number of people living in slums. Many people live in slums because they cannot afford proper housing. The PMAY Scheme helps them move into safe, permanent homes, which improves their living conditions and reduces the overcrowding in slum areas.
7. Improves Quality of Life
Living in a pucca (permanent) house with proper facilities like toilets, clean drinking water, and electricity improves the overall quality of life. It provides families with a safe and secure environment, protecting them from the weather, diseases, and unsafe living conditions. Owning a house gives people a sense of security and stability, which is important for a better life.
8. Supports Economic Growth
When more people build or buy houses, it helps grow the economy. It creates jobs in construction and related sectors, and people spend money on materials and services. This overall development contributes to a stronger economy by generating employment and improving infrastructure.
By helping people from all walks of life, especially those struggling financially, Pradhan Mantri Awas Yojana gives families a chance to own a home, providing safety, stability, and hope for a better future. If you are below the poverty line, this scheme could be your gateway to owning a home.
Tax Benefits Of The Pradhan Mantri Awas Yojana
From tax deduction on home loans to subsidies on home loans, here are several tax benefits of the PM Awas Yojana, such as:
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Interest deduction on home loans: Under PMAY-U, homebuyers are eligible for a 2 lakh deduction on interest payments of home loans under Section 24(b) of the Income Tax Act.
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Principal repayment: People can claim up to a deduction of Rs 1.5 lakhs on the principal repayment of the home loan under Section 80C.
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First-time homebuyers: With the help of the Credit-Linked Subsidy Scheme (CLSS) of PMAY-U, people buying homes for the first time can apply for additional tax benefits and related subsidies on the interest of the loan.
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Affordable housing: For houses under affordable housing, buyers can claim additional tax benefits under Section 80 EEA, which offers an additional deduction of 1.5 lakhs on interest on home loans.
Also read: House Construction Subsidies Introduced To Empower The Scheduled Castes
What Are The Eligibility Criteria To Apply For Pradhan Mantri Awas Yojana?
Households planning to apply must meet the PMAY scheme eligibility 2025 criteria, which define income limits and ownership conditions for different categories. The scheme aims to provide affordable housing to individuals and families living in cities and towns, particularly targeting the Economically Weaker Sections (EWS), Low-Income Groups (LIG), and Middle-Income Groups (MIG).
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Must be an Indian citizen living in India.
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A salaried employee or a self-employed professional between the ages of 23 and 70 years.
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Must have a CIBIL Score of 725 and higher to get a home loan.
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EWS households with an annual income of up to 3 lakhs.
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LIG households with an annual income between 3 lakhs and 6 lakhs.
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MIG-1 households with annual income between 6 lakhs and 12 lakhs.
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MIG-2 households with annual income between 12 lakhs and 18 lakhs.
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Must not own a pucca house in any part of the country.
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The family must include a husband/wife and unmarried children.
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Should not have availed of any housing-related schemes before.
The allotment is done based on the calculation of scores within groups. The following parameters are given consideration, each with an equal weightage:
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Households with no adult members aged between 16 to 59 years.
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Female-headed households with no adult male members aged between 16 to 59.
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Households with no literate adult above 25 years of age.
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Households with any disabled member and no able-bodied adult member
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Landless Households derive the major part of their income from manual casual labour
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Households with higher deprivation scores will be ranked higher within the subgroups.
Also read: Pradhan Mantri Garib Kalyan Anna Yojana (PM-GKAY): Transforming Food Security in India.
Documents Required For the Application Process Of Pradhan Mantri Awas Yojana
All applicants must make sure they have all the required documents while applying for Awas Yojana and People can check their PMAY beneficiary status online after submitting their application, and they can also track pmay status through the official portal.
Documents Required To Apply For PMAY-U (Urban)
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Aadhaar Card
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Self-Certificate/Affidavit as Proof of Income
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Residential Proof
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Proof of Minority Community
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Proof of Nationality
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EWS Certificate / LIG Certificate / MIG Certificate
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Salary Slips
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IT Return Statements
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Property Valuation Certificate
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Bank Details and Account Statement
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Proof that the applicant does not own a ‘pucca’ house
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Proof that the applicant is constructing a home under the scheme
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Salaried individuals need to submit the above-mentioned documents along with Form 16.
Application Process
People can complete their application anytime using the PMAY apply online service available on the PMAY-U portal.
How To Apply For Pradhan Mantri Awas Yojana - Urban
The Pradhan Mantri Awas Yojana Urban seeks to provide affordable housing to urban individuals. The application process for PMAY-U is simple and has both offline and online applications available. Let’s take a look at both.
Online Application Process:
Step 1: Visit the official PMAY-U website.
Step 2: Select the ‘Citizen Assessment’ option.
Step 3: Then click on ‘For Slum Dwellers’ or ‘Benefits under the other three components’.
Step 4: Enter your Aadhaar card details.
Step 5: You will be redirected to the online application form.
Step 6: Fill out the application form and upload the necessary documents.
Step 7: Click ‘Save’ and enter the Captcha code.
Step 8: The application is complete.
Offline Application Process:
If you want to apply for Pradhan Mantri Awas Yojana Urban offline, follow the PMAY offline registration process as follows.
Step 1: Visit the nearest Common Service Centre (CSC).
Step 2: Pay Rs. 25 to buy the application form.
Step 3: Fill out the form and attach the necessary documents.
Step 4: Submit the application form.
How To Check The Application Status Of Pradhan Mantri Awas Yojana - Urban?
It is easy to track the application status of Pradhan Mantri Awas Yojana via their online portal. One can check the application status of PMAY-U by following the steps:
Step 1: Visit the official PMAY-U portal.
Step 2: Sign in to your account and click on the ‘track your assessment status' option.
Step 3: Fill in your assessment ID or your details to check the status of your application.
How To Check The Beneficiary List For PMAY Urban?
Applicants can track updates using the PMAY beneficiary status feature and stay informed about approvals or additional requirements.
Step 1: Visit the official PMAY-U portal.
Step 2: Navigate to the ‘Search beneficiary’ option.
Step 3: Fill in your Aadhaar number and view the list.
Conclusion
The Pradhan Mantri Awas Yojana has played a major role in improving housing access for families across rural and urban India. By providing affordable home loans, interest subsidies, and support for first-time homebuyers, the government continues to revise guidelines, deadlines, and subsidy norms, and applicants must stay updated regarding the PMAY scheme last date and new announcements under PMAY scheme 2025. As India moves towards inclusive development, initiatives such as PMAY empower individuals, uplift communities, and strengthen the nation’s mission of “Housing for All.”
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