When it comes to life goals – owning a home is probably right at the top – no matter which strata of society a person belongs to. However, amidst the rising costs of living and starkly disproportionate growth in income, affordable housing seemed a distant dream for the urban poor and people with lower socio-economic backgrounds. 

Realizing the emotional and economic value, owning a house has in the lives of people, the government of India rolled out the ambitious, Pradhan Mantri Awas Yojana In this article, we explained in detail how to apply for PMAY and reap the various benefits it offers. But before we begin, let us understand the scheme a little. 

P.S : Watch the video on Pradhan Mantri Awas Yojana Scheme 2020 in Hindi to know more about the eligibility, scheme details and the procedure to apply.

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What Is PMAY

The Pradhan Mantri Awas Yojana is a government housing scheme that was launched in mid-2015 to provide affordable housing for both urban and rural poor. Intending to construct 20 million houses by the end of the financial year 2021-22, this scheme has two major components.

  • Pradhan Mantri Awas Yojana Urban (PMAY-U.)
  • Pradhan Mantri Awas Yojana Gramin (PMAY-G.)

Under PMAY-G, the primary objective remains to construct brick and mortar houses for homeless individuals and those living under poor living conditions. On the other hand, PMAY-U’s objective is to provide affordable housing to those belonging to the economically weaker section, which it aims to achieve by following the action points given below:- 

  • Rehabilitating slum dwellers, with private funding support
  • Offering credit linked subsidy schemes to encourage individuals to avail of affordable housing.
  • Construction and enhancement of affordable residential properties for eligible individuals.
  • Provision of affordable housing through a joint venture between the public and private sectors.

How to Apply for This Scheme? 

For those wondering how to apply for Pradhan Mantri Awas Yojana, you can do so through both offline and online mode.

Offline Mode

The government has made the application process for this scheme available offline to those who might find it difficult to apply online.

The procedure to apply for the scheme offline is as follows:-

Step 1: Visit your nearest Common Service Centre (CSC), which is operated under your State Government to obtain a PMAY application form. You can also visit any bank listed under PMAY to obtain it.

Here are the top banks listed under PMAY that you can approach along with their interest rates.

Banks  Interest rate details
Punjab National Bank
  • Max Int Rate: 9.35%
  • Min In Rate : 7.90%
State Bank Of India
  • Max Int Rate : 8.30%
  • Min In Rate : 7.90%
Bank Of Baroda
  • Max Int Rate: 8.30%
  • Min In Rate: 8.00%
  • Max Int Rate: 9.35%
  • Min In Rate : 7.90%
Bank Of India
  • Max Int Rate : 8.40%
  • Min In Rate: 8.10%
Corporation Bank
  • Max Int Rate: 8.90%
  • Min In Rate: 8.10%
  • Max Int Rate : 9.25%
  • Min In Rate: 8.25%
  • Max Int Rate: 9.20%
  • Min In Rate : 8.55%
Bajaj Finserv
  • Max Int Rate: 11.15%
  • Min In Rate : 8.55%
Kotak Mahindra
  • Max Int Rate : 9.30%
  • Min In Rate: 8.60%

Note : The applicable processing fee will vary from bank to bank . 

Step 2: You will then have to fill out this application form, furnish all required documents and application fee, and submit them at the center where you collected this form. 

Other details related to the offline application include the following.

Application fee – Offline application fee for PMAY is Rs. 25 (+GST)

What Are The Documents Required?

It is better if you keep these documents handy while applying for the scheme online or offline.

  • Proof of identity (Aadhaar card, PAN card, voters’ ID)
  • Proof of address.
  • Proof of income (Form 16, bank account statement, latest IT returns.)
  • Valuation certificate for the property to be purchased.
  • An affidavit stating that you or your family member does not own any brick and mortar house, also known as a pucca house, in India.
  • Agreement for the construction of the building with the builder or developer
  • The approved plan for construction of the building.
  • No Objection Certificate furnished by a relevant authority or housing society
  • The document certifying the conditions and quality of the property in concern.
  • Letter of property allotment.
  • Receipt of advance payment made for the purchase of the property, if applicable.
  • Any other property document if applicable.

Online Mode

Before learning the process of how to apply online, you will first need to understand the applicability of the PMAY scheme.

The benefits offered under the PMAY-U can be availed by individuals belonging to the following categories, determined as per their position on the economic strata –

Credit Linked Subsidy Scheme   Description   Subsidy Details 
Low Income Group/ Economically Weaker Section Individuals with annual household income between Rs. 3 Lakh and Rs. 6 Lakh.
  • Max Carpet Area: 30 -60 Square meters
  • Max Loan amount eligible for subsidy : 6 Lakhs
  • Subsidy on interest: 6.5%
  • Subsidy granted( Max) : 2.67 Lakhs
  • Loan period: 20 years
Mid-Income Group – I Individuals with annual household income between Rs. 6 Lakh and Rs. 12 Lakh.
  • Max Carpet Area: 90 Square meters
  • Max Loan amount eligible for subsidy: 9 Lakhs
  • Subsidy on interest : 4%
  • Subsidy granted( Max) : 2.35 Lakhs
  • Loan period: 20 years
Mid-Income Group – II Individuals with annual household income between Rs. 12 Lakh and Rs. 18 Lakh.
  • Max Carpet Area : 110 Square meters
  • Max Loan amount eligible for subsidy : 12 Lakhs
  • Subsidy on interest : 3%
  • Subsidy granted( Max) : 2.30 Lakhs
  • Loan period : 20 years

The online application for PMAY-U is divided into two processes, based on which category economic section you belong to.

Online Application Process for Slum-Dwellers

Slum-dwellers looking to avail the benefits of PMAY can do so by following the method prescribed below –

Step 1 – Log in to the official website of PMAY (

Step 2 – Navigate to the menu bar and click on the option marked “Citizen Assessment.”

Step 3 – A drop-down menu will appear from where you will have to choose the option “slum dwellers.”

Step 4 – On the page that appears, you will have to enter your Aadhaar Number and your name, as put forth in your Aadhaar card. In case you do not have your Aadhar Number, you will have to provide your virtual ID.

Step 5 – After entering these details you will be redirected to the main application page. Here, you will have to enter information like your residential and permanent address, residential income, ownership details of your existing houses, and so on.

Step 6 – After filling all the relevant details, you will need to check on the terms of the agreement, enter the proper captcha code that appears, and click on the “Save” option to get your application details recorded on this website.

Online Application Process for those Belonging to the Other 3 Categories

Individuals belonging to the EWS/LIG, MIG-I and MIG-II categories, eligible to avail the benefits of PMAY can apply online by following the steps prescribed below.

Step 1 – Log in to the official Pradhan Mantri Awas Yojana website.

Step 2 – Navigate to the menu bar and click on the option marked “Citizen Assessment.”

Step 3 – Choose the option of “Benefit Under Other 3 Components” from the drop-down menu that appears.

Step 4 – On the page that appears, furnish details like your Aadhaar card number and your name as put forth under it. If you do not have the Aadhaar card number, you will need to enter your virtual ID.

Step 5 – Next, you will be redirected to the main page, where you will have to enter all relevant personal information like your annual household income, residential and permanent address, etc.

Step 6 – After entering all the relevant information, you will have to check the terms of the agreement at the bottom of the page, enter the captcha code that appears and register the details provided with the website.

As you can see the online application process for Pradhan Mantri Awas Yojana is quite streamlined. However, before applying, make sure you check the eligibility criteria to avail PMAY to make the application process hassle-free. Don’t forget to obtain all the necessary documents before you start the application process. It may take anywhere between 3-4 months to receive the subsidy amount, after complete verification by the government.

Footnote: Please ensure you have your Aadhaar card before applying for the PMAY scheme as it is a mandatory document. 

To Sum Up,

PMAY as a scheme was envisioned to lower the financial burden on people belonging to lower economic background, who wish to buy a home. The subsidy offered can help individuals in partial repayment of home loans and reduce their liabilities significantly. The online process and the long list of banks that are registered under PMAY, offering subsidized home loan rates, have further simplified the process and made it easier for individuals to avail the benefits of the scheme. 

Disclaimer : The views expressed in this post are that of the author and not those of Groww.