Pradhan Mantri Awas Yojana (PMAY) is a credit-linked subsidy scheme by the Government of India to facilitate access to affordable housing for the low and moderate-income residents of the country.

In 1957, within the ambit of the second five-year plan of Prime Minister Nehru, Village Housing Programme (VHP) was introduced providing loans to individuals and cooperatives of up to ₹5,000 per unit.

[7] With the launch of Indira Awas Yojana (IAY) by the then Prime Minister Rajiv Gandhi in 1985, the public housing programme in India got a boost.

[8] As a part of the continuous efforts of the Indian Government to fulfill the housing needs of rural and urban poor, Pradhan Mantri Awaas Yojana was launched by Prime Minister Narendra Modi in June 2015 with an aim to provide affordable housing.

[9][10] Under PMAY, it is proposed to build 2 crore houses for the urban poor including Economically Weaker Sections and Low-Income Groups in urban areas by the year 2022 through the financial assistance of ₹2 lakh crore (US$23 billion) from the central government.

[4][1][2] Under the Pradhan Mantri Awas Yojana, a subsidy of ₹2.67 lakh is provided by the government on the interest of home loan for buying a house.

The scheme's primary objective was to provide housing for the economically weaker sections in the country, and individuals belonging to below the poverty line or BPL.

The features of Pradhan Mantri Awas Yojana are that the government will provide an interest subsidy of 6.5% (for EWS and LIG), 4% for MIG-I and 3% for MIG-II[11][12] on housing loans availed by the beneficiaries for a period of 20 years under credit link subsidy scheme (CLSS) from the start of a loan.

[5] d) The loan applicant should not have availed any central/state government subsidy or benefit for buying a home under the PMAY scheme.

[17] The scheme aimed to make India slum-free by 2022 by providing people with shelter or housing, free of cost.