How does PMAY urban benefits affordable home buyers?

While buying a home under PMAY Urban scheme, you must have adequate knowledge of its pros and cons. Pradhan Mantri Awas Yojana (PMAY-U) Urban scheme was started by the Government of India to offer affordable housing to lower and middle income groups (LIGs and MIGs). 

Through PMAY Urban housing scheme, you can buy affordable residential accommodation under Credit Linked Subsidy Scheme (CLSS). The date to avail subsidy under such schemes has also been extended up to March 31, 2022, for Economically Weaker Sections (EWS) and LIG. However, the subsidy deadline for MIG-I and MIG-II has expired on March 31, 2021. The interest rate for PMAY Urban starts from 6.5% per annum that can be availed for up to 20 years.

Who are PMAY(U) housing scheme beneficiaries?

Major beneficiaries of the PMAY urban development scheme are:

BeneficiaryAverage Annual Income (INR)
Economically Weaker Section (EWS)Up to 3 lakhs
Lower Income Group (LIG)3 – 6 lakhs
Middle Income Group (MIG-I)6 – 12 lakhs
Middle Income Group (MIG-II)12 – 18 lakhs

In addition to the above-mentioned beneficiary categories, individuals belonging to SC/ST/OBC and women of EWS and LIG are also eligible for subsidy under this urban development scheme.

Subsidy under PMAY urban housing scheme

The following table gives an overall idea of the subsidies under PMAY(U) housing scheme:

CategoryInterest Subsidy (p.a.)Maximum Loan (INR)
MIG-II3%12 lakhs
MIG-I4%9 lakhs
LIG6.5%6 lakhs
EWS6.5%6 lakhs

Pradhan Mantri Awas Yojana Urban (PMAY Urban) aims at simplifying the house purchasing process for the weaker sections of the society in urban areas. The rate of interest offered under this housing scheme is significantly lower than the commercial rates.

Features and benefits of PMAY urban housing scheme

Urban development housing schemes introduced by the Government of India offer a number of benefits to everyone meeting the eligibility criteria.

Here are some of the features and benefits of the PMAY Urban development scheme:

  • Subsidy rate is offered at 6.5% on all housing loans for up to 20 years of tenure.
  • Senior citizens and differently-abled people receive preference under all categories.
  • Sustainable and eco-friendly technologies are used for the construction of housing premises.
  • PMAY Urban housing scheme covers all urban areas of the country, including 4041 sanctioned towns wherein 500 Class-I cities are preferred. The project is being carried out in three phases.
  • CLSS of PMAY is implemented during the initial stages of the project in all statutory towns.
  • Overall sanctions under the scheme include 1.13 crore houses (the number is growing steadily).
PMAY – benefits for all

The skyrocketing property prices in India crush people’s dreams of buying a house, especially of the ones who do not have large incomes. PMAY Urban housing scheme helps such individuals in realizing their dream of owning a house.

Individuals considering this scheme must note that the beneficiary should not own a pucca house or have availed of other central government schemes. The scheme was introduced in 2015 by the ruling government and has been working efficiently since then.

Disclaimer: The views expressed above are for informational purposes only based on industry reports and related news stories. PropertyPistol does not guarantee the accuracy, completeness, or reliability of the information and shall not be held responsible for any action taken based on the published information.


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