Loan subsidy for middle-income group extended till March 2020

File pic Minister for Housing and Urban Affairs Hardeep Singh Puri said that the Pradhan Mantri Awas Yojana, PMAY loan subsidy for the middle-income group has been extended till 31st March 2020.

The Minister said, more than 6 thousand 9 hundred crore rupees interest subsidy on housing loans have been disbursed to over 3.14 lakh beneficiaries of Credit Linked Subsidy Scheme CLSS under Pradhan Mantri Awas Yojana (Urban).

The Pradhan Mantri Awas Yojana (Urban) Programme launched by the Ministry of Housing and Urban Poverty Alleviation (MoHUPA), in Mission mode envisions provision of Housing for All by 2022 when the Nation completes 75 years of its Independence. The Mission seeks to address the housing requirement of urban poor including slum dwellers through following programme verticals:

  • Slum rehabilitation of Slum Dwellers with the participation of private developers using land as a resource
  • Promotion of Affordable Housing for the weaker section through credit linked subsidy
  • Affordable Housing in Partnership with Public & Private sectors
  • Subsidy for beneficiary-led individual house construction /enhancement.

The targeted group of beneficiaries

  • Indian women of all religions and castes. Everyone will be equally eligible no biased treatment on basis of caste or religion.
  • People who come from low income and economically weaker sections of the society.
  • SC (Scheduled Castes) and ST (Scheduled Tribes).

Eligibility criteria

  • The mission seeks to address the housing requirement of urban poor including slum dwellers.
  • Beneficiaries include the economically weaker section (EWS), low-income groups (LIGs) and Middle Income Groups (MIGs).
  • A beneficiary family will comprise the husband, wife, unmarried sons and/or unmarried daughters.
  • The beneficiary family 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.
  • States/UTs, at their discretion, may decide a cut-off date on which beneficiaries need to be resident of that urban area for being eligible to take benefits under the scheme.


  • Ensure that the housing requirements of all urban poor including slum dwellers are met through different Programme verticals.
  • The core objective is to provide central assistance to implementing agencies through States and UTs for providing houses to all eligible families/ beneficiaries by 2022.
  • Provide a pucca house with water connection, toilet & electricity facilities.
  • Ensure that urban localities are slums free & that all citizens have access to basic services.
  • Provide houses designed and constructed to meet requirements of structural safety against earthquake, flood, cyclone, landslides etc. conforming to the National Building Code (NBC) and other relevant Bureau of Indian Standards (BIS) codes

Primary Features

  • Development of Slum Areas slum areas is to be developed under this scheme with the help of private participation using land as a resource.
  • Interest Subsidy – The government will provide an interest subsidy of 6.5% on housing loans availed by the LIG and EWS groups beneficiaries and an interest subsidy of 3-4% on housing loans availed by MIG beneficiaries under credit link subsidy scheme (CLSS).
  • Pro-Women – The scheme is pro-women as preference will be given to females applicants for house allotments.
  • Disabled Friendly – Ground floor of the houses will preferably be given to physically differently abled or to senior citizens.
  • Eco-Friendly – Construction developers should strictly follow eco-friendly development technologies.
  • Affordability – Grant subsidy range anywhere between INR 1 lakh and INR 2.30 lakh to LIG and EWS section of the urban population.

Pradhan Mantri Awaas Yojana (Rural)

  • In pursuance to the goal – Housing for all by 2022, the rural housing scheme Indira Awas Yojana has been revamped to Pradhan Mantri Awaas Yojana (Gramin) w.e.f. 1st April 2016. Under the scheme, financial assistance is provided for construction of the pucca house to all houseless and households living in dilapidated houses in rural areas.


  • Under the scheme, it is proposed to build four crore pucca houses in total, by the year 2022
  • One crore households would be provided assistance for construction of pucca house during the first phase, from 2016-17 to 2018-19.

Identification of beneficiaries

  • To ensure that assistance is targeted at those who are genuinely deprived PMAY-G selects beneficiary using housing deprivation parameters in the Socio-Economic and Caste Census (SECC), 2011, which is to be verified by the Gram Sabhas.
  • Identification of beneficiaries eligible for assistance and their prioritization is done using information from Socio-Economic and Caste Census (SECC) ensuring total transparency and objectivity.
  • The SECC data capture specific deprivation related to housing among households.
  • The list will be presented to Gram Sabha to identify beneficiaries who have been assisted before or who have become ineligible due to other reasons.


  • The cost of unit assistance is to be shared between Central and State Governments in the ratio 60:40 in plain areas and 90:10 for North Eastern and hilly states.
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