Chanakya IAS Academy Blog

Pradhan Mantri Awas Yojana : An Attempt to Stamp out Social Disparity

The much awaited Pradhan Mantri Awas Yojana which intends to provide housing for all by the year 2022 has been eventually launched by Prime Minister Narendra Modi. Earlier the Government had launched housing for all which has now been reformed as Pradhan Mantri Awas Yojana. Prime Minsiter Narendra Modi has launched this scheme on 25th June 2015.

The number of slum households has skyrocketed to 18 million. The scheme intends to cover 2 million non-slum urban poor households. Hence total housing shortage envisaged to be addressed through the new mission is 20 million.


The beneficiary of this scheme will embrace husband, wife and unmarried children. The beneficiary family should not own a pucca house either in his/her name or in the name of any member of his/her family in any part of India.

The mission will meet the housing requirement of urban poor including slum dwellers through following programme verticals:

  • Affordable Housing in Partnership with Public & Private sectors.
  • Slum rehabilitation of Slum Dwellers with participation of private developers using land as a resource.
  • Subsidy for beneficiary-led individual house construction.
  • Promotion of Affordable Housing for weaker section through credit linked subsidy.

People who belong to EWS and LIG segments of the urban societies of India will be covered under this scheme.

What are the primary features of Pradhan Mantri Awas Yojana ?

Preference will be given to female members while allotting houses under this scheme. Simply put as compared to male beneficiaries,application of female beneficiaries will be accepted more easily. This makes the scheme a pro-woman scheme.

As per the instructions of government, housing enclaves developed under the scheme will follow eco-friendly construction technology.

Differently abled or aged people will be given first preference while allotting ground floor houses.

People from LIG or EWS segments of urban population will be eligible for receiving subsidy from the government. The subsidy will enable the people from target segment to afford a house under the scheme and will range anywhere between INR 1 lakh and INR 2.30 lakh.

Government will also extend subsidy for interest rates on loans availed for the Yojana.

Some more interesting features of Pradhan Mantri Awas Yojana

Here are three more important features of the scheme.

Eligible poor from the urban sectors of the nation will receive INR 150,000 central funding if they want to build their own house or want to make some kind of renovations.

Each beneficiary will be granted an average of INR 100,000 by the central government under this scheme.

In addition to that, a central government funded financial aid of INR 150,000 will be granted to beneficiaries for promotion of housing stock, however, one needs to keep in mind that 35% of the housing units are reserved for people belonging to EWS category.

Drastic reduction of EMI under Pradhan Mantri Awas Yojana

Subsidized interest rate of 6.5% against housing loans under the scheme will greatly benefit the people. Currently the market rate for interest on housing loan is 10.5%. This means people covered under the scheme will enjoy a rate of interest which is 4% below the market rate. This evidently implies that there will be a drastic cut down in the amount of EMI one needs to repay every month.

Such schemes will water down the differences between rich and poor in the society and is an attempt to root out social disparity. Needless to say, it will surely uplift the living standards of the people as well and pave the way for prosperous India. Such kind of initiatives by the Government is always a welcome step.

Read 321 times Last modified on Monday, 20 June 2016 18:03
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