PRADHAN MANTRI AWAS YOJNA

Updated: Oct 29





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Pradhan Mantri Awas Yojana (Urban) or PMAY  was launched on 25th June 2015 for providing pucca houses to all eligible beneficiaries by 2022. The Mission provides Central Assistance to implementing agencies through States/Union Territories (UTs) and Central Nodal Agencies (CNAs) for providing houses to all eligible families/ beneficiaries against the validated demand for houses for about 1.12 cr. PMAY(U) has made a mandatory provision for the female head of the family to be the owner or co-owner of the house under this Mission. A basket of options is adopted to ensure more number of people depending on their income, finance and availability of land through following four options.

1. “In-situ” Slum Redevelopment (ISSR)

2. Credit Linked Subsidy Scheme (CLSS)

3. Affordable Housing in Partnership (AHP)

4. Beneficiary-led individual house construction/enhancements (BLC)

Let's understand each of these options one by one:

1.In-Situ Slum Redevelopment(ISSR)

Under Slum redevelopment Central Assistance of Rs.1 lakh per house is admissible for all houses built for eligible slum dwellers under the component of In-situ Slum Redevelopment (ISSR) using land as Resource with participation of private developers. This slum rehabilitation grants can be utilised by States/UTs for any of the slum redevelopment projects. After redevelopment, de-notification of slums by State/UT Government is recommended under the Mission guidelines.

2.Credit Linked Subsidy Scheme(CLSS)

Interest Subsidy up to 2.67 lakh per house is admissible for Beneficiaries of Economically Weaker Section (EWS)/Low Income Group (LIG), Middle Income Group (MIG)-I and Middle Income Group (MIG)-II seeking housing loans from Banks, Housing Finance Companies and other such institutions for acquiring/constructing houses. The interest subsidies of 6.5%, 4% and 3% on loan amount up to Rs. 6 lakh, Rs. 9 lakh and Rs. 12 lakh are admissible for a house with carpet area of up to 60, 160 and 200 Sq.Meter for EWS/LIG, MIG I and MIG II respectively.The benefit for EWS/LIG beneficiaries under CLSS works out to as high as Rs. 6 lakh over a loan period of 20 years.



3.Affordable Housing in Partnership(AHP)

Central Assistance of Rs.1.5 Lakh per EWS house is provided by Government of India in projects where at least 35% of the houses in the projects are for EWS category and a single project has at least 250 houses.

4.Beneficiary-led individual house construction/enhancements (BLC)

Under this component, Central Assistance of Rs.1.5 lakh is available to individual eligible families belonging to EWS categories to either construct new houses or enhance existing houses on their own to cover the beneficiaries who are not able to take advantage of any other component of the Mission.

If the beneficiary has a pucca house with carpet area of up to 21 sq. mt. area or a semi-pucca house, lacking in one of the facilities- i.e. room, kitchen, toilet, bath or a combination of these, it may be taken up for enhancement subject to ULB/State ensuring structural safety of the house and adherence to following conditions:

• The total carpet area after enhancement must not be less than 21 sq. mt and must not be more than 30 sq. mt.

• Enhancement shall mean addition of minimum carpet area of 9.0 square meters in to the existing house with pucca construction of at least one habitable room or room with kitchen and/or bathroom and/or toilet conforming to NBC norms.

Definition of Beneficiary under Pradhan Mantri Awas Yojna

 A beneficiary is defined as a family comprising of husband, wife and unmarried children. Such beneficiary should not own a pucca house either in his / her name or in the name of any member of his / her family in any part of India to receive Central Assistance under the Mission.

• Person having pucca house less than 21 sqm may be included under enhancement of existing house

• Adult earning member irrespective of marital status are also eligible

• EWS category of beneficiaries is eligible for Assistance in all four verticals of the Missions whereas LIG/MIG category is eligible under only CLSS component of the Mission

Which are the Key Nodal Agencies responsible for disbursal of subsidy under CLSS ?

NHB, HUDCO and SBI have been identified as Central Nodal Agencies (CNAs) to channelize this subsidy to the lending institutions and for monitoring the progress of this component. 

What are the eligibility Criteria for CLSS basis different parameters ?

Criteria 1-Income Based

The EWS/LIG/MIG categories are defined as follows:

• EWS households with an annual income upto Rs. 3.00 lakhs.

• LIG households with an annual income between Rs. 3.00 lakhs to Rs. 6.00 lakhs.

• MIG-I households with an annual income between Rs. 6.00 lakhs to Rs. 12.00 lakhs.

• MIG-II households with an annual income between Rs. 12.00 lakhs to Rs. 18.00 lakhs. States/UTs have flexibility to redefine the annual income criteria as per local needs with the approval of Ministry.



Criteria 2- Basis Size of Property

The carpet area of houses being constructed under this component should be as follows:

• Upto 30 sq.m. or 323 Sqft for EWS category

• Upto 60 sq.m. or 646 sqft for LIG category

• Upto 160 sq.m.or 1722 sqft  for MIG-I category

• Upto 200 sq.m or 2152 sqft for MIG-II category

This means that if the carpet area exceeds the respective limits, then the beneficiaries would not be eligible to avail of the benefit under this component.

(Definition of Carpet Area-Its the actual usable area.Area enclosed within the walls, actual area to lay the carpet. This area does not include the thickness of the inner walls.)

Other criteria for beneficiary to qualify under CLSS sceme


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  1. A beneficiary is defined as a family comprising of husband, wife and unmarried children. Such beneficiary should not own a pucca house either in his / her name or in the name of any member of his / her family in any part of India to receive Central Assistance under the Mission.

  2. Person having pucca house less than 21 sqm may be included under enhancement of existing house

  3. Adult earning member irrespective of marital status are also eligible

  4. EWS category of beneficiaries is eligible for Assistance in all four verticals of the Missions whereas LIG/MIG category is eligible under only CLSS component of the Mission

IMP - A beneficiary must satisfy all the above criteria to qualify for beneficiary under CLSS scheme.

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How does a beneficiary gets the subsidy under CLSS?


1.The applicant applies for availing home loan from any of the Scheduled Commercial Banks, Housing Finance Companies, Regional Rural Banks (RRBs), State Cooperative Banks, Urban Cooperative Banks 


2.The lending institution-bank/hfc sanctions the loan to applicant an checks the eligibility of applicant for qualifying under CLSS scheme basis the Criteria 1,Criteria 2 and other criteria(as stated above)


3.Loan is sanctioned and disbursed to customer by the lending institution-bank/hfc.


4.Lending institution shares the details of CLSS eligible customers with NHB(National Housing Bank)

5.NHB checks the authenticity of the claims and facts disclosed by applicants.


6.Subsidy would be released on the disbursements made by lending institution-bank/hfc to the beneficiaries. Subsidy, so disbursed, will be credited  to the borrower’s loan account upfront by deducting it from the principal loan amount. As a result, the borrower will pay EMI on the remainder of the principal loan amount. E.g., the borrower avails a loan for Rs. 6.00 lakhs and subsidy thereon works out to Rs. 2.20 lakhs, the amount (Rs. 2.20 lakhs) would be reduced upfront from the loan (i.e., the loan would reduce to Rs. 3.80 lakhs) and the borrower would pay EMIs on the reduced amount of Rs. 3.80 lakhs


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