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Navigating Affordable Housing: A Closer Look at PMAY's Rs 80,671 Crore Allocation

Feb 20, 2024
Navigating Affordable Housing: A Closer Look at PMAY's Rs 80,671 Crore Allocation

Affordable housing has been a challenge for the Indian government for a while now. Buying a house is one of an individual's most significant decisions. With so many people migrating from rural to urban areas, it is crucial to assist people who cannot afford to buy a pucca house and are forced to live in slums. While there are many affordable housing schemes by the state governments, this year’s interim budget saw a massive increase in the budget allocation to the PMAY housing scheme. In this article, we will talk about the PMAY housing scheme and how it impacts affordable housing in India.

PMAY in Budget 2024

The Interim Budget 2024 has allocated a substantial amount of INR 80,671 crore for the Pradhan Mantri Awas Yojana (PMAY) to construct two crore houses in the next five years. Despite the challenges posed by the COVID-19 pandemic, the Pradhan Mantri Awas Yojana- Grameen has made commendable progress and is expected to complete its target of constructing three crore houses this year.

In addition, the government has announced that it will launch a new affordable housing scheme for the deserving middle-class segments. This scheme will target individuals currently living in rented houses, slums, chawls, and unauthorized colonies. This initiative will help uplift the living standards of many people struggling to afford decent housing in India.

Eligibility of PMAY

To be eligible to apply for the PMAY housing scheme, you must fulfill two major criteria:

  • Income Criteria

Your annual family income should not exceed INR 18 lakhs to be eligible to apply to the PMAY scheme.

  • Ownership Status

You must not own a pucca house to apply for the Pradhan Mantri Awas Yojana. This applies to both you and your family. If any family member already owns a pucca house, you will not be eligible to apply for the scheme.


Let us now move on to how the PMAY housing scheme actually works. The scheme focuses on three areas to function efficiently:

  • Urban Focus: PMAY-U operates in cities, focusing on EWS and LIG households by providing affordable housing solutions.
  • Rural Outreach: PMAY-G addresses rural housing needs, specifically targeting those residing in kutcha houses to improve living conditions.
  • Credit Support: PMAY-CLSS spans both urban and rural areas, aiding the middle-income group with credit-linked subsidies for accessible housing options.


The PMAY housing scheme relies on contributions from the Government of India, state governments, and beneficiaries. The funding structures vary depending on the implementation structure. For example, in PMAY-G, the cost-sharing ratio between central and state governments is 60:40 for rural areas, while in hilly states, it shifts to 90:10, with the central government providing 90%. Union Territories receive 100% central government funding without a detailed cost breakdown.

Monitoring and Evaluation

The Ministry of Housing and Urban Affairs is responsible for overseeing the implementation of this ambitious scheme, which is monitored using a sophisticated web-based system called AwaasSoft. This tool tracks the scheme's progress at the national, state, and district levels, providing comprehensive data crucial for effective evaluation and continuous improvement.

Beneficiaries of PMAY

The Pradhan Mantri Awas Yojana (PMAY) targets individuals from lower and middle-income groups who do not possess a pucca house. The income beneficiaries can be classified into three categories based on their economic status, as depicted in the table below:

Under PMAY-G Scheme (Grameen) People belonging to the Economically Weaker Section (EWS), Low Income Group (LIG), and Below Poverty Line (BPL) category
Under PMAY-U Scheme (Urban) People belonging to the Economically Weaker Section (EWS), Low Income Group (LIG), and Below Poverty Line (BPL) category
Under CLSS of the PMAY-U Scheme People belonging to the Low-Income Groups and Middle-Income Groups

How to Apply for the PMAY Housing Scheme?

PMAY housing scheme can be availed of through two channels- offline and online.

For the online application process, follow these steps:

  • Visit the official portal: Go to the PMAY portal and navigate to the 'Citizen Assessment' section.
  • Select 'Benefit under 3 Components': From the drop-down menu, choose 'Benefit under 3 Components' to initiate your application.
  • Provide Aadhaar Details: Enter your Aadhaar details; it's mandatory for the application.
  • Fill Personal Information: Input your personal details, including name, contact number, account number, and income details.
  • Save and Submit: Save and submit the application form after carefully entering the Captcha code.
  • Print Application Form: It is advisable to take a printout of the submitted application for future reference.

For the offline application process:

You must locate a Common Service Center (CSC) or a State Nodal Agency for offline applications. Next, you need to visit it and fill out the application form that will be provided. Ensure that you fill in all your details carefully. Lastly, you must submit the form to an authorized official with an application fee of INR 25.

Documents Required for PMAY Housing Scheme

When you are filling out your application online, you’ll need the following documents ready with you. Make sure that you have them with you beforehand to make the process easier and faster:

  • Your Aadhaar Card
  • Your Residential ID
  • Your Mobile Number
  • Your Passport Photograph
  • Income Proof
  • Details of the Account (for subsidy to be credited)

Impact of PMAY on Affordable Housing

The PMAY housing scheme is the flagship program of the Indian government to provide affordable housing in India. Recently, a study was conducted by the Ministry of Housing and Urban Affairs on the impact of PMAY-U on beneficiaries in two states. According to that report, PMAY-U has not only addressed the housing needs of urban poor households but also significantly improved their physical, social, economic, environmental, and human aspects. The provision of secured and dignified housing has increased the standard of living for people, especially women. However, there is still room for improvement in areas such as financial inclusion and sustainability. After the interim budget of 2024, affordable housing will now be accessible to both low-income and middle-class individuals.


To conclude, the Pradhan Mantri Awas Yojana (PMAY) is an Indian government initiative to provide affordable housing. The 2024 interim budget has allocated INR 80,671 crore towards the scheme, which aims to construct two crore houses over the next five years.

You should not be worried about financing your first home, even if you aren’t eligible for the PMAY housing scheme. SMFG Grihashakti brings you attractive home loans up to INR 1 crore* with reasonable interest rates starting for salaried individuals and self-employed individuals. You can check your eligibility for a home loan with the help of a free eligibility calculator on their website and apply now!

Please Note:

Government of India/NHB reserves the sole discretion to award benefits under this scheme by assessing the eligibility of beneficiaries. The above contents herein is a brief summary of the related announcement.


What are the benefits provided under PMAY?

The Pradhan Mantri Awas Yojana (PMAY) housing scheme provides financial assistance to eligible individuals for building or buying a home, an interest subsidy on home loans, and support to improve the overall housing infrastructure. This initiative aims to make housing accessible and affordable for those who qualify.

Is there any provision for women beneficiaries under PMAY?

The Pradhan Mantri Awas Yojana (PMAY) scheme is designed to encourage and support homeownership among women. As part of this initiative, women beneficiaries are given priority and enjoy special concessions to make the process of owning a home more affordable and accessible.

What are the income criteria for PMAY eligibility?

The Pradhan Mantri Awas Yojana (PMAY) has specific income criteria for eligibility. It includes EWS with an annual income of up to INR 3 lakhs, LIG with an income between INR 3 lakhs and INR 6 lakhs, MIG I between INR 6 lakhs and INR 12 lakhs, and MIG II between INR 12 lakhs and INR 18 lakhs per annum.

Disclaimer: *Please note that this article is for your knowledge only. Loans are disbursed at the sole discretion of SMFG Grihashakti. Final approval, loan terms, disbursal process, foreclosure charges and foreclosure process will be subject to SMFG Grihashakti’s policy at the time of loan application. If you wish to know more about our products and services, please contact us.

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