Jun 15, 2023Home Ally

Government-Sponsored Mortgage Schemes In India: PMAY And More

by Godrej Properties Limited



India's Government-Sponsored Mortgage Schemes

One of the primary challenges individuals and families in India faces is the ability to own a home. Recognising this, the Indian government has introduced several mortgage schemes aimed at providing affordable housing to its citizens. The Pradhan Mantri Awas Yojana (PMAY) is a flagship initiative among these. Let's explore PMAY and other significant government-sponsored mortgage schemes in India.

Familiarise PMAY And Other Significant Government-Sponsored Mortgage Schemes In India

1. Pradhan Mantri Awas Yojana (PMAY)

PMAY was launched in 2015 by the Indian Government to give reasonable housing to both urban and rural populations. It has two components: PMAY-U for urban areas and PMAY-G for rural areas. Under PMAY-U, beneficiaries are classified into four categories based on their income levels, namely economically weaker sections (EWS), lower-income groups (LIG), middle-income groups (MIG-I), and middle-income groups (MIG-II). PMAY-G aims to provide financial assistance to people in rural areas to construct or renovate their houses.

2. Credit-Linked Subsidy Scheme (CLSS)

Under PMAY, the Credit-Linked Subsidy Scheme (CLSS) provides interest rate subsidies on home loans to eligible beneficiaries. The subsidy amount varies based on the beneficiary category, with higher subsidies for EWS and LIG categories. This scheme has played a crucial role in making affordable housing for low-income groups.

3. Affordable Housing Fund (AHF)

To promote the development of affordable housing projects, the Indian government has established the Affordable Housing Fund (AHF). The AHF provides financial assistance to eligible developers, enabling them to build affordable homes faster. 

4. Pradhan Mantri Gramin Awas Yojana (PMGAY)

PMGAY, also known as the Rural Housing Scheme, focuses on providing housing assistance to people living in rural areas. It aims to construct pucca houses with basic amenities for households without adequate shelter. Under this scheme, beneficiaries receive financial assistance to build their homes, ensuring a safe and secure living environment.

5. Rajiv Awas Yojana (RAY)

Launched in 2013, the Rajiv Awas Yojana aims to provide affordable housing to slum dwellers and low-income households in urban areas. It emphasises the need for inclusive and sustainable urban development. RAY offers financial assistance for slum redevelopment, affordable housing projects, and infrastructure development in slum areas.

In Conclusion

Government-sponsored mortgage schemes like PMAY, CLSS, PMGAY, and RAY have played a pivotal role in addressing the housing needs of Indian citizens. These initiatives have not only made housing more accessible and affordable but also promoted inclusive and sustainable urban and rural development. With ongoing efforts and continued focus on housing schemes, the Indian government aims to ensure that every citizen has access to a decent and affordable home, improving their overall quality of life.


Frequently asked questions

1. Are there any other government-sponsored mortgage schemes in India?

Ans. Apart from PMAY, there are other government-sponsored mortgage schemes in India. 

2. Who is eligible for the PMAY?

Ans. People from the Economically Weaker Sections (EWS), Low-Income Group (LIG), Middle-Income Group I (MIG I) and Middle-Income Group II (MIG II) are eligible for the PMAY.

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