Pradhan Mantri Awas Yojana: Housing For All

Food, clothing and housing are considered as three basic needs of human beings. These three things are extremely important for a positive and healthy survival of any human being. In order to provide these necessities to its citizens, Indian government has introduced many schemes in the past. One such scheme was introduced by Prime Minister Narendra Modi on 1st June 2015. The scheme is known as Pradhan Mantri Awas Yojana (PMAY) which will help the urban poor population of India to get their own secured and well built house.

With a tag line of ‘Housing For All’ the scheme started in June 2015. It pledges to give affordable housing to India’s urban poor population by the year 2022. The NDA government has targeted the 75 year celebration of Indian independence to provide the basic need of Indians i.e. housing. This scheme focuses on slum rehabilitation, construction of better houses, renovating houses with basic needs like toilets etc.

Pradhan Mantri Awas Yojana includes 4 different schemes which will be implemented by the Indian government with the help of respective urban local bodies:

In-situ Rehabilitation of existing slum dwellers using land as a resource through private participation

Credit Linked Subsidy Scheme

Affordable Housing in Partnership

Subsidy for beneficiary-led individual house construction/enhancement.

Form these four schemes, Credit Linked Subsidy Scheme (CLSS) is a central sector scheme where as the rest are centrally sponsored schemes. Central sector scheme means the central government finances and operates the scheme with 100% involvement.  Centrally sponsored schemes mean both central and state governments contribute finances and execution of the scheme but with more involvement from the state government.

Objectives of Pradhan Mantri Awas Yojana:

To provide housing for poor Indian population who lives in urban area by 2022.

To build 2 crore houses across India’s urban belt.

To provide housing for economically challenged groups which includes women, people who belong to minority groups and medium income group.

To provide housing for even most ignored demographic groups such as widows, transgender and low income group.

To provide houses with minimum utilities such as water supply, toilet, electricity supply and easy access by road.

The Pradhan Mantri Awas Yojana is being implemented in 3 phases. The Pradhan Mantri Awas Yojana covers all the urban areas in the country which include 4041 statutory towns with preference to 500 class 1 cities. The three phase details are given below:

Phase Start Date End Date No. of Cities Covered
Phase 1 April 2015 March 2017 100
Phase 2 April 2017 March 2019 200
Phase 3 April 2019 March 2022 200 (plus any other cities government may include in consultation with state/UT governments)


Features And Benefits Of Pradhan Mantri Awas Yojana:

Loans are given up to 12 lakhs.

Loans are given for 9%* interest rate. The subsidy on interest rate ranges from 3%-4%* as per income criteria.

The maximum tenure is of 20 year*.

The loans are given for maximum 30 square meter* carpet area. States and UTs can make changes in the area designated by consulting ministry but will not get additional financial backing in funds from central government.

Disabled and senior citizens are given priority in granting the loans under Pradhan Mantri Awas Yojana.

Sustainable eco friendly technology will be used to build houses.

Best construction techniques will be used with implanting better design and planning.

The construction will use innovative technology with suitable material as per the geography of the region.

Mothers and wives will be made beneficiaries in Pradhan Mantri Awas Yojana.

Under Pradhan Mantri Awas Yojana house registration is to be done in the name of female head of the family. If there is no female head in the family then the registration is done under the male’s name but in very few exceptional cases.

There are 2 middle income categories for approving loan under Pradhan Mantri Awas Yojana: 1. Rs. 6 lakh* to Rs. 12 lakh* & 2. Rs. 12 lakh* to Rs. 18 lakh* p.a. Two new middle income categories will be made soon.

The Pradhan Mantri Awas Yojana supports construction/rebuilding/renovation of house, kitchen, toilet and other such basic infrastructure.

The houses which will be constructed are supposed to be built as per safety measures of the region concerning earthquake, flood, cyclone, landslide etc.

The house construction should be done as per national building code and other construction codes given by the Indian government time to time.

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