Impact of Pradhan Mantri Housing Yojana(PMAY) On Housing Sector in India


Everyone dreams to own a home where they can dwell in peace with their loved ones. However, the skyrocketing rates of real estate property have made it difficult for the working class to fulfill this dream. Sure, the upper class can easily afford to buy their own home; but what about the poor and middle class? Will they ever be able to get their own home?

This is where Pradhan Mantri Awas Yojana scheme comes to aid in providing affordable housing for the lower economic group of society. Also, under the Credit Linked Subsidy Scheme, beneficiaries under the PMAY scheme are eligible for interest subsidy if they avail a housing loanto purchase or construct a house.

Objectives of PMAY Scheme

With an ever-increasing population in India, the major challenge is to provide affordable houses, especially for the weaker economic classes. It is crucial for the government to ensure the sustainable development of houses with a safe environment for urban people.

  • The main objective of the Pradhan Mantri Awas Yojana Scheme is to provide affordable housing for all by the year 2022.
  • To make it accessible to economically challenged groups along with people belonging to minorities such as Scheduled Castes and Scheduled Tribes.
  • Other neglected groups like widows, lower-income group members, transgender and henceforth provide them with a sustainable and affordable housing scheme.
  • Special preferences for ground floor properties will be given to differently-abled and senior citizens if required.
  • To avail the benefits of the PMAY scheme you need to complete the registration which includes the strict beneficiary names to be mothers or wives.

Affordable Housing Segment and the Rise in Investments

There has been a dramatic surge in investments in the affordable housing space due to the increase in demand for houses along with the government’s push for the housing initiative. Private equity real estate firms have invested heavily in the scheme and some of the takeaways have been highlighted below-

  • Most of the housing projects launched in 2017 were under the affordable and mid-range price categories. In fact, the affordable sector by itself accounted for more than 40% of the total residential projects.
  • The real estate based private equities made 67 investments in India, the value of which was $6.1 billion.
  • Considering that the Union Budget 2018 is likely to give the affordable housing sector and the Pradhan Mantri Awas Yojana a significant push, an increase in the number of investments by the private equities is expected this year.

Interest Rate Subsidy under Pradhan Mantri Awas Yojana

  • You can apply for a home loan from any listed lending institution asking for a subsidy.
  • Once your application gets approved and you are eligible, yourhousing loan application will be sent to the Central Nodal Agency.
  • The Central Nodal Agency will then disburse the amount to the lending institution.
  • The amount will then be credited to your account by the lending institution which will lower your total home loan amount.
  • You can continue paying the EMIs to balance the loan amount.

Pradhan Mantri Awas Yojana EMI Calculator

The PMAY scheme aims to simplify the process of purchasing a home for the working class and weaker sections of society through housing loan EMIs at a reasonable rate of interest. With a housing loan EMI Calculator, you can calculate your EMIs. Log on to the PMAY website and fill in your details to receive the monthly installment or EMI payable in rupees.

Pradhan Mantri AwasYojana played a significant role in providing affordable housing for the working class and the poor. However, the scheme is not just limited to making housing accessible and affordable, but it has also created ample job opportunities for all irrespective of their financial stability.