Definition
Pradhan Mantri Awas Yojana (PMAY) is a flagship housing scheme launched by the Government of India in 2015 with the aim of providing affordable housing to all urban and rural citizens by the year 2022. The scheme focuses on constructing homes for economically weaker sections (EWS), low-income groups (LIG), and middle-income groups (MIG). PMAY also includes incentives for slum rehabilitation and encourages the use of eco-friendly construction techniques. The initiative consists of two parts: PMAY-Urban for urban housing and PMAY-Gramin for rural housing. Under the scheme, beneficiaries are offered interest subsidies on home loans, making it easier for them to buy or construct homes.
Case Study
An example is a middle-income family in Pune that purchases its first home under the Credit Linked Subsidy Scheme. The family takes a housing loan of ₹20 lakh from the Bank of Baroda and receives an interest subsidy of 4% under PMAY, which reduces their overall loan burden by nearly ₹2.5 lakh. This subsidy directly credits to their loan account, lowering monthly EMIs and making homeownership more affordable. The scheme, launched in 2015, aims to provide “Housing for All” by 2024 through financial assistance, affordable housing development, and partnerships with state and urban local bodies. It has enabled millions of lower and middle-income families to buy or build homes across both urban and rural India.
Historical Reference
PMAY was launched as part of a broader national agenda to improve living conditions, reduce slum areas, and provide secure housing for the economically weaker sections of society. The government’s initiative focused on constructing affordable homes, rehabilitating slums, and promoting home ownership through subsidized financing.
By 2021, PMAY had facilitated the construction of over 11.5 million homes across India, with a significant portion of the homes built in rural areas. The scheme also included the construction of green, sustainable housing, contributing to India’s climate goals.