The Indian Government has many schemes for its citizens to have a better opportunity to live the life of their dreams. For a dream life, you will indeed have a plan for a dream home. However, the rising prices of homes and lands in India have prevented many from dreaming at all. This is where the Pradhan Mantri Awas Yojana, or PMAY scheme, makes a significant difference.

The Pradhan Mantri Awas Yojana has given a chance to every individual to have a chance at becoming a homeowner. The initial plan of the Central Government of India was to provide 20 million people to build their homes or buy one by the year 2020. 

Pradhan Mantri Awas Yojana applies to the purchase of houses and construction of houses. To get more people to avail of the scheme, the Government also lowered the GST rates from 12% to 8%. This whopping low GST rate has intrigued many individuals and investors to apply for the scheme. The PMAY eligibility is also set in a way that maximum citizens can drive value out of it! 

Pradhan Mantri Awas Yojana- Aim & Objective

The Pradhan Mantri Awas Yojana was formed in the year 2015 and was initially aimed at the economically weaker section of the society for acquiring affordable deals on homes. This scheme gives home loan owners a chance to claim subsidies on the loan interest amount. However, the interest amount may vary from one economic category to another, inscribed under the different Pradhan Mantri Awas Yojana categories. 

As mentioned earlier, this scheme is only eligible for a specific economic section of the Indian population. All individuals looking to buy land, a home, or build a home and have taken a loan can apply under the scheme, but the subsidy amount on the loan is only available to certain sections of society. This includes the Economically Weaker Section (EWS), Lower Income Group (LIG), and Middle Income Group (MIG). 

These economic sections are determined based on the annual family income. Therefore, any family with an annual income above 18lakhs is not eligible for the subsidy. Furthermore, two categories under Pradhan Mantri Awas Yojana must be clarified. 

Pradhan Mantri Awas Yojana Urban (PMAY-U)

The urban division comprises over 4300 cities across India. So far, they have completed over 35 lakh projects. Scores of projects are underway, and the rate of occupied homes stands close to 92%. 

Pradhan Mantri Awas Yojana Gramin (PMAY-G)

Apart from the urban settings, the Pradhan Mantri Awas Yojana also reaches out to the country's rural areas. This scheme was active before 2015 under the name Indira Gandhi Awas Yojana. The Pradhan Mantri Awas Yojana Gramin scheme is specifically curated for the economically weaker sections and lower income groups. Until 2020, this scheme has produced over 1.4 crore houses sanctions for houses in the rural areas, except Chattisgarh & Delhi.  

Pradhan Mantri Awas Yojana Scheme Features

As of now, the Pradhan Mantri Awas Yojana 2021 plans to deliver affordable housing for all by 2022. Some other features that benefit the scheme users are noted below. 

  • The goal of the Pradhan Mantri Awas Yojana is to provide affordable housing options or construction options for economically weaker communities, including women and minorities. 
  • The Pradhan Mantri Awas Yojana scheme has also been beneficial to senior citizens. However, this is only applicable for senior citizens claiming subsidiaries on loan interest for a ground floor property. 
  • For availing of the scheme, individuals need to register. The mandate also states that women and primary mothers and wives are the scheme's beneficiaries. 
  • Other communities, such as the transgender community and widows, can apply for the Pradhan Mantri Awas Yojana. 


The Pradhan Mantri Awas Yojana has brought in the fresh air and offered hope to the communities previously deprived of even dreaming of a home. For a developing country like India with such a massive population, the PMAY scheme is a great deal. It is incorporated by keeping the welfare of the citizens in mind