Houses under PMAY Urban

Govt sanctions construction of 56,368 houses under PMAY Urban

15 Mar 2021
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In Feb 2021, the Government of India sanctioned the construction of 56,538 houses under its flagship Pradhan Mantri Awas Yojana-Urban (PMAY-U). The states and union territories have been directed to ensure 100 percent completion and delivery of the PMAY-Urban houses to all the eligible beneficiaries by 2022.

What is PMAY-U?


The PMAY-U mission, launched in 2015, is the Government of India’s flagship mission being implemented by the MoHUA       to address the urban housing deficit among the various income groups, including the slum-dwellers by providing affordable pucca houses to eligible households by 2022. The sole aim of the mission is to ensure a dignified living of its beneficiaries in houses that shall include all essential amenities such as a kitchen, water supply, proper sanitation, and electricity connection-giving them a sense of security and pride in house ownership.

All the houses built under the PMAY-Urban shall include basic amenities. Besides prioritising the beneficiaries belonging to the economically weaker sections of the society, preference is also given to differently-abled persons, minority, transgender, and other vulnerable sections of the society. The mission also encourages the empowerment of women by providing them with female or joint ownership of the property.

Key Components of PMAY-Urban

The key components/schemes of the Pradhan Mantri Awas Yojana -Urban include the following:

1. Credit Linked Subsidy Scheme (CLSS)

Beneficiaries belonging to different income categories - EWS, LIG, MIG-I, and II, who wish to avail home loans from banks and financial institutions for buying, constructing, or renovating houses are eligible for a credit-linked interest subsidy upto a given loan amount for a maximum loan tenure of 2o years. CLSS shall help its beneficiaries across income categories reduce their monthly home loan EMIs by over Rs. 2000.

Here are the interest subsidy rates applicable as per income category and home loan amount:

 Income Category

Interest Subsidy Rates

Eligible Home Loan Amount

Latest Carpet Area

 Upfront  Subsidy Amount for a 20-year Loan

Approx. EMI savings@10 % Loan Interest rate

Economically Weaker Section (EWS)

6.5 percent

Up to Rs. 6 Lakhs

30 m2

Upto Rs.2,67,280

Rs. 2500

Low Income Group (LIG)

6.5 percent

Up to Rs. 6 Lakhs

60 m2

Rs.2,67,280

Rs. 2500

Middle Income Group -I

4 percent

Up to Rs. 9 Lakhs

120 m2

Rs.2,35,068

Rs. 2250

Middle Income Group -II

3 percent

Up to Rs. 12 Lakhs

150 m2

Rs.2,30,156

Rs. 2200

1. Affordable Housing in Partnership (AHP)

  • An affordable housing project is defined as a conglomeration of houses for different income categories that shall be eligible for a Central Government’s grant, only if a minimum of 35 percent of houses belonging to the project is targeted towards the EWS category.
  • Under the AHP, the Central Government shall assist such affordable housing projects with a financial grant of 1.5 Lakhs for each EWS home.
  • To make the houses affordable, the upper ceiling of the sale price for such houses is decided by the states/UTs.

2. Beneficiary-led Individual House Construction/Enhancement (BLC-N/BLC-E)

  • Under BLC-N/BLC-E, the Central Government shall assist up to Rs. 1.5 Lakhs each to eligible beneficiaries of EWS category for construction/enhancement of individual houses.
  • The Urban Local Bodies (ULBs) are responsible for verifying the land documents submitted by the beneficiary so that the eligibility of the landowner can be established.
  • If found eligible under the EWS category, financial assistance of upto Rs. 1.5 Lakhs provided by the Central government are transferred into the beneficiary’s bank account by the States/UTs through the Direct Benefit Transfer (DBT), along with the ULB/State/UT share, if any.

3. In-Situ Slum Redevelopment (ISSR)

  • Under the ISSR plan, the Central Government shall offer financial assistance of Rs. 1 Lakh per house built for eligible slum dwellers using land as a resource with the participation of private developers.
  • Post slum redevelopment, de-notification of slums needs to be carried out by the States/UTs as per the guidelines.
  • No financial assistance is provided by the central government for slums being developed on privately owned land

4. Affordable Renting Housing Complexes (ARHCs) for Migrant Workers/Urban Poor

  • Introduced in 2020, the ARHCs are aimed at providing accessible rental housing at affordable prices for the urban migrants or poor at their work locations.
  • Beneficiaries include urban migrants or poor from the LIG/EWS categories.
  • ARHCs shall be an assortment of one or two-bedroom units and dorms of 4/6 beds with all common amenities included.
  • ARHCs shall be used only for rental purposes for at least 25 years.

Who is eligible for PMAY-Urban?

The eligibility for the Pradhan Mantri Awas Yojana-Urban is determined by an individual’s household income as shown below:

Income Category

Household Income

Economically Weaker Section (EWS)

Less than Rs. 3 Lakhs

Low Income Group (LIG)

From Rs. 3 Lakhs to Rs. 6 Lakhs

Middle Income Group-I (MIG-I)

From Rs. 6 Lakhs to Rs. 12 Lakhs

Middle Income Group-II (MIG-II)

From Rs. 12 Lakhs to Rs. 18 Lakhs

For all eligible beneficiaries, PMAY will help in fulfilling the dream of owning a home with a tangible interest subsidy on the home loan amount. Similarly, if you are looking for a home loan for buying a new home, Finserv MARKETS could be your one-stop solution. On Finserv MARKETS, you could also apply for a home loan at low-interest rates and minimal documentation. With a home loan application through Finserv MARKETS, you can be assured of quick, hassle-free loan approval and disbursal.