7 Benefits of Pradhan Mantri Awas Yojana Scheme

Benefits of Pradhan Mantri Awas Yojana SchemeBenefits of Pradhan Mantri Awas Yojana Scheme

One of the basic necessities of a human being is a house to stay in. It is a place where your mind and soul relaxes and rejuvenates for the next day. But this is still a dream for majority of population in India. Government of India initiated a major step in this area by announcing a scheme known as “Pradhan Mantri Awas Yojana”.  It is a scheme that runs nationwide to ensure that people get affordable houses within their financial capabilities. What are the phases of Pradhan Mantri Awas Yojana Scheme? What are the benefits of Pradhan Mantri Awas Yojna scheme?


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What are the Phases of the Pradhan Mantri Awas Yojana Scheme?

The scheme was launched on 25th June 2015 with an estimated target of constructing 2 crore affordable houses in a span of seven years i.e. year 2022. Targeting the Low Income Group (LIG) and Economically Weaker Sections (EWS) of the urban areas, the scheme is designed to build houses across the length and breadth of the country.

The Pradhan Mantri Awas Yojana is designed to be completed in three phases. The target of all the three phases of the scheme is just the development and completion of affordable houses under the scheme.   

  • Phase I- Phase I start from April 2015 to March 2017 and cover the selected 100 cities of the country.
  • Phase II- Phase II begins from April 2017 to March 2019 and covers 200 cities of India.
  • Phase III- this phase is the last phase commencing from 2019 to 2022adn covers all the remaining cities of the country.

Features and Benefits of Pradhan Mantri Awas Yojana Scheme

For the purpose of this scheme, the economically weaker section (EWS) has been defined as the people having income below 3 lacs per annum and Low income Group (LIG) as the people having income between Rs. 3 lacs to Rs. 6 lacs per annum. However, the definition can change depending upon the particular state government and in consultation with the central government. One important point to take a note here is that one should not own a pucca house in his own name or in the name of his family members in any part of the country to avail this scheme.  (Here family means husband, wife and unmarried children.) There are many benefits and advantages of the scheme which are indicated below.

1) Subsidy

A subsidy will be granted to people from LIG or EWS segments. It will come from the central government treasury and will range between Rs. 1,00,000 to 2,30,000. The subsidy can be used only for possessing a house under this scheme.

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2) Subsidized rate of interest

The Pradhan Mantri Awas Yojana comes with a promise of substantial decrease in the rate of interest. If you avail a loan under this scheme up to the amount of Rs. 600,000,  the applicable rate of interest would be 6.5% as against the current market rate at 10.5%.  This will drastically reduce the amount one has to pay in EMI.  This interest subsidy will last for a period of 15 years from the date on which the loan has been dispersed. In case the loan amount is greater than Rs. 6,00,000, the borrower has to pay the normal rate of interest on that increased amount. An important to note is that one has to be from EWS or LIG category to avail this loan.

3) Preference to females

Female members will be given the preference in case of allotment of houses. In other words, female applicants will be given the priority over male applicants. This makes the scheme a pro-women scheme.

4) Ground floor houses

For ground-floor houses, preference will be given to the people who are disabled or who are aged.

5) Eco-friendly

It has been strictly instructed that the housing enclaves developed newly should strictly follow the eco friendly construction technology.    

6) Renovation or extension

A person from EWS or LIG category can also avail this loan if he /she already possesses a house but that needs renovation or extension or he/she actually wants to build a new house on his own instead of purchasing a house from the government-made homes. If the loan is taken for extension or renovation of an old house, the carpet area has to be 30 sq meters for EWS category people and 60 sq. meters for LIG category people. If this condition is not fulfilled, the loan would not be granted.

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7) Development of slum areas

The slum areas to be developed using land as a resource with the help of private participation.

Conclusion: There are millions of people who are covered under this scheme. Everyone dreams to have his own house, but financial constraints stop them. This can prove to be like a ‘dream come true’ scheme for many of those. So, grab this golden opportunity to own a house of your own

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Benefits of Pradhan Mantri Awas Yojana Scheme

Suresh KP


  1. this is the best pm awas yojana to all indian people who wants to make their own home in india,thanks to all regulatory authority of pm awas yojana.

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