Indira Awas Yojana (IAY) – What It Was, How It Became PMAY, and How to Apply

IAY/ PMAY-G remains one of India's most impactful rural housing programmes, having provided housing to millions of BPL families across rural India since 1985. Understanding its history, objectives, features, and eligibility helps current applicants navigate the PMAY-G system.

This page covers:

• What Indira Awas Yojana is and its historical background
• Why IAY was renamed to PMAY
• Objectives of the IAY scheme
• Key features: ownership, construction standards, fund release structure
• Benefits of the scheme
• Eligibility criteria
• Documents required
• How to apply for IAY/ PMAY-G
• How to check IAY/ PMAY-G application status
• How supplemental home loan financing connects to PMAY-G

Indira Awas Yojana (IAY) was a central government housing scheme launched in 1985 to provide free housing to rural families living below the poverty line. First introduced by Rajiv Gandhi as a sub-scheme of the Rural Landless Employment Guarantee Programme (RLEGP), it subsequently became an independent scheme under the Ministry of Rural Development.

In the financial year 1995-96, IAY extended its benefits to widows and close relatives of defence personnel killed in action. Over time, the scheme became one of the most significant rural welfare programmes, addressing the documented reality of approximately 6.5 crore people living in urban slums and millions more in rural areas without permanent shelter.

In 2016, IAY was restructured, strengthened, and renamed Pradhan Mantri Awas Yojana Gramin (PMAY-G), incorporating better targeting, monitoring through geotagged photographs, and direct bank transfers.

No official reason was stated for the rename. The restructuring reflected the government's objective to strengthen delivery mechanisms, improve beneficiary identification through SECC (Socio-Economic and Caste Census) data, and shift fund transfers to direct bank accounts linked with Aadhaar. Under PMAY-G, urban citizens can also access affordable housing through the Credit-Linked Subsidy Scheme (CLSS) component.

• Construct durable and affordable houses for BPL families in rural India
• Prioritise housing for Scheduled Castes, Scheduled Tribes, minorities, and freed bonded labourers
• Promote joint ownership of houses by women to enhance their social standing
• Encourage eco-friendly and sustainable construction using locally sourced materials
• Ensure basic facilities, such as sanitation, drinking water, are part of the housing construction

Ownership structure

Homes constructed under IAY were under joint ownership of husband and wife. Exceptions applied for unmarried, divorced, and widowed individuals, where sole ownership was permitted. If eligibility was based on a disabled member, they maintained sole ownership.

Construction standards

• Construction was carried out only by the beneficiary; no contractor or agency involvement was permitted
• NGOs, youth clubs, or similar organisations could provide monitoring and support services
• Eco-friendly and locally sourced materials were promoted

Fund release structure

Construction time limit

• First stage must be completed within 9 months of receiving the first instalment
• Second stage must be completed within 9 months of receiving the second instalment

• Houses are designed based on the actual needs and preferences of the beneficiaries
• Locally sourced materials are used to construct homes designed to last at least 30 years
• Eco-friendly and environmentally sustainable construction techniques generate additional rural employment
• Gram Panchayats are empowered as key implementing agencies, driving community participation
• Provision for workplaces and ancillary construction alongside housing

• Aadhaar card of all family members
• Bank account details (Aadhaar-linked for DBT)
• BPL certificate or SECC survey acknowledgement
• Caste certificate (for SC/ ST applicants)
• Land ownership document or declaration of landlessness
• Income certificate
• Photograph

• Verify eligibility: Confirm you are below the poverty line and live in a rural area. Priority is given to SC/ ST, minorities, and women
• Visit the Gram Panchayat: Approach your local Gram Panchayat office to initiate the application
• Collect the application form: Obtain the IAY/PMAY-G application form from the Panchayat or at the official PMAY-G website
• Complete the form: Provide all required details, including family composition, income, current housing condition, and Aadhaar linkage
• Submit with documents: Attach all required documents and submit to the Gram Panchayat
• Track your application: Use the PMAY-G portal to check beneficiary status using your registration number

• Visit the PMAY-G reporting portal
• Click on 'Stakeholders' and select ‘IAY/PMAYG Beneficiary’
• Enter your Registration Number to view status
• Alternatively, use the 'Awaas+ 2024' mobile application for Aadhaar-linked status checks

IAY and its successor PMAY-G represent India's most sustained commitment to rural housing, providing shelter to millions of BPL families over four decades. For rural families who need supplemental financing beyond the government grant, Bajaj Finance offers home loans from 7.25% p.a.** with amounts up to Rs. 15 Crore* and tenures up to 32 years. Check your eligibility today.