Pradhan Mantri Awas Yojana (PMAY) is a credit-linked subsidy scheme launched by the Government of India in June 2015 to facilitate access to affordable housing for low and moderate-income residents of the country. The scheme aims to provide housing for all in urban areas by 2022. It has two components:

• Pradhan Mantri Awas Yojana (Urban) (PMAY-U): This component is administered by the Ministry of Housing and Urban Affairs and is aimed at providing affordable housing for the urban poor. The scheme provides an interest subsidy of 6.5% (for EWS and LIG), 4% for MIG-I and 3% for MIG-II on housing loans availed by the beneficiaries for a period of 20 years under the credit link subsidy scheme (CLSS) from the start of a loan.

• Pradhan Mantri Awaas Yojana (Gramin) (PMAY-G and also PMAY-R): This component is administered by the Ministry of Rural Development and is aimed at providing affordable housing for the rural poor. The primary objective of PMAY-G is to provide pucca houses to the homeless and those living in dilapidated and kutcha ones. Financial assistance provided by the Central and respective State Government will be shared per the following: Plain areas – 60:40.

The scheme also converges with other schemes to ensure houses have a toilet, Saubhagya Scheme for universal electricity connection, Ujjwala Yojana LPG connection, access to drinking water and Jan Dhan banking facilities, etc. . The features of PMAY include an interest subsidy on home loan interest rate for a term of 20 years, compulsory ground floor housing accommodation for senior citizens and the differently-abled, mandatory use of eco-friendly materials for building construction, extending scheme coverage to include all urban areas in India, and encouraging women to become homeowners by making it mandatory to register a property with both the male and female heads of the family unless there is no female family member.