• A remarkable feature of the PMAY is that it is a credit linked subsidy scheme.
  • Under the Credit Linked Interest Subsidy component, interest subsidy of 6.5 percent on housing loans availed upto a tenure of 20 years will be provided to EWS/LIG categories. 
    • Central assistance at the rate of Rs.1.5 lakh per house for EWS category will be provided. 
  • State Government or their affiliates like Housing Boards can take up project of affordable housing to avail the Central Government grant.
  • Similarly, credit linked subsidy also will be given to Middle Income Group (MIG). 
    • Middle-income group beneficiaries with annual income of above Rs.6 lakh and up to Rs.12 lakh get an interest subsidy of 4 per cent on a 20-year loan component of Rs. 9 lakh. 
    • The MIG with annual income exceeding Rs. 12 lakh and up to Rs. 18 lakh would get interest subsidy of 3 per cent.
  • Coverage of the scheme:The scheme covers the entire urban area consisting of 4041 statutory towns with initial focus on 500 Class I cities and it will be implemented in three phases as follows, viz. 
    • Phase-I (April 2015 – March 2017) to cover 100 Cities to be selected from States/UTs; 
    • Phase – II (April 2017 – March 2019) to cover additional 200 Cities and 
    • Phase-III (April 2019 – March 2022) to cover all other remaining Cities.