PMAY: Pradhan Mantri Awas Yojana Complete Guide 2020 Updated

Pradhan Mantri Awas Yojana by

Pradhan Mantri Awas Yojana: Complete Guide 2020

Did you know that over 1.53 crore houses have been constructed under the Pradhan Mantri Awas Yojana (PMAY) scheme?

After reading this go-to guide for understanding PMAY, you will be more than equipped to analyze its objectives, features, components, beneficiaries, achievements, and so on.

We will be covering the following topics in order to do so:


  1. What is PMAY?
  2. Primary Objectives of PMAY
  3. Components of PMAY.
  4. Target Groups of PMAY
  5. Features of PMAY
  6. CLSS
  7. EMI Calculator
  8. Achievements
  9. How to Apply for the Scheme?
  10. Conclusion
  11. FAQs

Let’s dive in!

What is PMAY?

The Pradhan Mantri Awas Yojana or PMAY is a scheme launched by the Government of India in June 2015, primarily aiming to provide housing for all by the year 2022– when India will celebrate its 75th year of independence. It aims to build 20 million houses in the country whilst boosting affordability at the same time.

PMAY has two components based on where it is being implemented- Pradhan Mantri Awas Yojana (Urban) and Pradhan Mantri Awas Yojana (Gramin).

Primary Objectives of PMAY

Apart from various other aims, these are the few primary objectives of the PMAY scheme:

  • To build affordable pucca houses on Plot with round-the-clock water, sanitation, and electricity supply.
  • To address the shortages of nearly 20 million housing units that are needed by the urban and rural poor.
  • Transform slum areas by providing housing for the slum dwellers. This slum rehabilitation program is done in collaboration with private developers.
  • Preference is given to women, minorities, Scheduled Castes, Scheduled Tribes, Transgenders, and differently-abled.

Now that we know the basic aim of the scheme, let’s move on to understanding the differences of PMAY being implemented amongst the urban and the rural populations.

Components of PMAY


 The scheme provides housing for the urban poor (with specified categories which we will look into shortly) as well as slum dwellers. It aims to build 2 crore houses by the year 2022 in listed urban areas. As of 1st January 2020, according to the Ministry of Housing and Urban Affairs, 4427 cities are covered under the scheme. It includes all the authorities responsible for urban planning, development, and regulations

To access the list of cities selected under PMAY-HFA (U), click here.

The implementation of PMAY (U) is to be done in 3 phases:

  1. Cover 100 cities in selected states and UTs between April 2015 and March 2017
  2. Cover 200 additional cities between April 2017 and March 2019
  • Cover the remaining cities between April 2019 and March 2022.

Home Loan PMAY by


The primary aim is to provide assistance to the homeless and those residing in decrepit houses to assist them in the construction of pucca houses. PMAY-G aims to construct 4 crore houses by 2022 in rural areas. This scheme was approved in March 2016, before which it was called the Indira Awas Yojana. It covers all rural areas across the country except Delhi and Chandigarh.

The beneficiaries of this scheme will be identified as per the Socio-Economic and Caste Census (SECC).

Target groups of PMAY & Income Criteria

The beneficiaries of this scheme come under three main categories– Economically Weak Sections (EWS), Low Income Groups (LIG), and Middle-Income Groups (MIG- further categorized into MIG 1 and MIG 2).

For MIG 1&2 categories, earning adults (irrespective of their marital status) can be considered as a separate family.

Eligibility criteria for beneficiaries: 

  • A beneficiary family consists of husband, wife, and unmarried children.
  • Beneficiary families should not own a pucca house in their name or in the name of any other family member, anywhere in India.
  • The individual seeking to benefit from the scheme must not avail the benefits of any other housing scheme under the Central or State Government

Refer to the table below to know what makes these beneficiaries eligible, interest subsidies provided for each category, and more:

Upto 3 Lakh EWS 6.5% per annum Rs 6,00,000 3.67 Lakhs Not specified
3 Lakh – 6 Lakh LIG
6 Lakh – 12 Lakh MIG- 1 4% per annum Rs 9,00,000 2.35 Lakhs 968 sqft
12 Lakh – 18 Lakh MIG- 2 3% per annum Rs 12,00,000 2.30 Lakhs 1184 sqft


PMAY Calculator by

Calculator and Financial Bill

For people coming under the EWS and the LIG categories who wish to take a loan of up to Rs 6,00,000, they receive an interest subsidy of 6.5% for a tenure of 15 years.

In rural areas interest subvention of 3% is offered on loans up to Rs 2 Lakhs for constructing new homes or extension of old homes. The government will financially assist to get affordable housing projects done in partnership with states/UTs for the EWS.

Further specified target groups include:

  • Indian women of all religions and castes
  • STs and SCs, transgenders, minorities.

These are the primary beneficiaries of the PMAY scheme targets.

Features of PMAY

Now that we’ve understood the scheme’s aims and objectives, components, and target groups- let’s dive into analyzing the various features PMAY leaves us with:

  • There are no restrictions on the value of the house being purchased or loan being availed.
  • Differently abled and senior citizens will be given preference to reside in the ground floors of the houses being constructed under the scheme
  • If you are purchasing a house in the EWS/LIG category, it is mandatory to have a woman owner/ co-owner. This feature helps with women empowerment. 
  • Eco-friendly technologies will be adopted during construction and development.
  • In case of home renovation/ extension in EWS/LIG categories- the carpet area can be a maximum of 323 sq ft and 645 sq ft respectively
  • Credit Linked Subsidy (CLSS) is implemented for weaker and mid-income sections on loans taken for new construction or renovation of existing homes.

There are few among the various features that the scheme provides us with.

Credit linked subsidy scheme (CLSS) 

As we previously studied, the PMAY primarily aims at providing affordable housing for all, rehabilitation of slums, subsidizing interests based on categories for independent house construction or renovation as well as Credit Linked Subsidy Scheme (CLSS).

Among these four main focus-points, Credit Linked Subsidy is the only scheme implemented as a central sector scheme. The benefits of CLSS can be availed by EWS and LIG categories.

CLSS is brought into the picture for two main reasons:

  • The Government of India wants to increase the flow of credit in institutions to meet the housing needs of the urban poor population.
  • To meet the demand for affordable housing prices.

Credit Linked Subsidy Scheme is implemented by two central nodal agencies:

All banks listed under the RBI offer the CLSS. 

Steps for Getting Interest Rate Subsidy through PMAY

  1. Apply for a home loan asking for a subsidy from the institution of your choice.
  2. Upon review of your application, if you meet the necessary eligibility criteria, your application will be forwarded to the Central Nodal Agency.
  3. If your application is verified and cleared, the Central Nodal Agency will pay out the subsidy amount to the lending institution you applied in.
  4. After reducing the total loan amount, this amount will be credited to you by the lending institution.

You will be able to pay the EMIs towards the balance loan amount.


Here is a list of banks under PMAY, according to

Housing Finance Companies Under PMAY

  1. Aadhar Housing Finance Ltd.
  2. Aditya Birla Housing Finance Ltd.
  3. Akme Star Housing Finance Ltd.
  4. Aptus Value Finance Corporation Ltd.
  5. Aptus Value Housing Finance India Ltd.
  6. Aspire Home Finance Corporation Ltd.
  7. AU Housing Finance Ltd.
  8. Can Fin Homes Ltd.
  9. Capital First Home Finance Ltd.
  10. Capri Global Housing Finance Private Limited
  11. Cent Bank Home Finance Ltd.
  12. Dewan Housing Finance Corporation Ltd.
  13. DHFL Vyasa Housing Finance Ltd
  14. DMI Housing Finance Pvt. Ltd.
  15. Edelweiss Housing Finance Pvt. Ltd
  16. Equitas Housing Finance Pvt. Ltd.
  17. Fast Track Housing Finance Company Ltd.
  18. Fullerton Home Finance Company Ltd
  19. GIC Housing Finance Ltd
  20. GRUH Finance Ltd.
  21. Habitat Microbuild India Housing Finance Company Pvt. Ltd.
  22. HBN Housing Finance Ltd.
  23. Hinduja Housing Finance Limited
  24. Home First Finance Company Ltd.
  25. Housing and Development Corporation Limited
  26. Housing Development Finance Corporation Ltd.
  27. ICICI Home Finance Company Ltd.
  28. IKF Housing Finance Private Limited
  29. India Bulls Housing Finance Ltd.
  30. India Home Loan Ltd.
  31. India Infoline Housing Finance Ltd.
  32. India Shelter Finance Corporation Ltd.
  33. Khush Housing Finance Ltd.
  34. L&T Housing Finance Ltd.
  35. LIC Housing Finance Ltd.
  36. Magma Housing Finance
  37. Mahindra Rural Housing Finance Ltd.
  38. Mamata Housing Finance Company Pvt. Ltd.
  39. Manappuram Home Finance Pvt. Ltd.
  40. Manipal Housing Finance Syndicate Ltd.
  41. MAS Rural Housing and Mortgage Finance Ltd.
  42. Mentor Home Loans India Ltd.
  43. Micro Housing Finance Corporation Ltd
  44. Muthoot Homefin Ltd.
  45. Muthoot Housing Finance Company Ltd.
  46. National Trust Housing Finance Ltd.
  47. New Habitat Housing Finance and Development Ltd.
  48. Nivera Home Finance Ltd
  49. North East Region Housing Finance Ltd.
  50. Orange City Housing Finance Ltd.
  51. Panthoibi Housing Finance Company Ltd.
  52. PNB Housing Finance Ltd.
  53. RAAS Housing Finance (India) Ltd.
  54. Reliance Home Finance Ltd.
  55. Religare Housing Development Finance Corporation Ltd.
  56. Repco Home Finance Ltd.
  57. Sahara Housing Finance Corporation Ltd
  58. Saral Home Finance Ltd.
  59. SEWA Grih Rin Ltd.
  60. Shriram Housing Finance Ltd.
  61. Shubham Housing Development Finance Company Pvt. Ltd.
  62. SRG Housing Finance Ltd.
  63. Sundaram Home Finance Limited
  64. Supreme Housing Finance Limited
  65. Swagat Housing Finance Company Ltd.
  66. Swarna Pragati Housing Microfinance Private Limited
  67. Tata Capital Housing Finance Ltd.
  68. Ummeed Housing Finance Private Limited
  69. USB Housing Finance Corporation Ltd
  70. Vastu Housing Finance Corporation Ltd
  71. Viva Home Finance Ltd.
  72. West End Housing Finance Limited

Public Sector Banks Under PMAY

  1. Allahabad Bank
  2. Andhra Bank
  3. Bank of Baroda
  4. Bank of India
  5. Bank of Maharashtra
  6. Bhartiya Mahila Bank Ltd.
  7. Canara Bank
  8. Central Bank of India
  9. Corporation Bank
  10. Dena Bank
  11. Indian Bank
  12. Indian Overseas Bank
  13. Oriental bank of Commerce
  14. Punjab & Sind Bank
  15. Punjab National Bank
  16. State Bank of Patiala
  17. Syndicate Bank
  18. UCO Bank
  19. United Bank of India
  20. Vijaya Bank

Private Sector Banks Under PMAY

  1. Axis bank Ltd.
  2. Catholic Syrian Bank
  3. City Union Bank
  4. DCB Bank Ltd.
  5. Dhanlaxmi Bank Ltd
  6. ICICI bank Ltd.
  7. J & K Bank
  8. Karnataka Bank Ltd.
  9. Karur Vysya Bank Ltd.
  10. Lakshmi Vilas Bank
  11. Nainital Bank Ltd.
  12. South Indian Bank Ltd.
  13. Tamilnad mercantile Bank Ltd
  14. The Federal Bank Ltd.
  15. Yes Bank

 Rural Banks under PMAY

  1. Allahabad UP Gramin Bank
  2. Andhra Pradesh Grameena Vikas Bank
  3. Arunachal Pradesh Rural Bank
  4. Assam Gramin Bank
  5. Bangiya Gramin Vikas Bank
  6. Baroda Gujrat Gramin bank
  7. Baroda Rajasthan Kshetriya Gramin Bank
  8. Baroda Uttar Pradesh Gramin Bank
  9. Bihar Gramin Bank
  10. Bihar State Co-operative Bank Ltd.
  11. Bombay Mercantile Co-operative Bank
  12. Central Godavari Grameena Bank
  13. Chaitanya Godavari Grameena Bank
  14. Chhattisgarh Rajya Gramin Bank
  15. Chhattisgarh Rajya Sahakari Bank Maryadit
  16. Citizen Credit Co-op Bank Limited
  17. Cosmos Co-operative Urban Bank Ltd.
  18. Cosmos Co-operative Urban Bank Ltd.
  19. Dena Gujarat Gramin Bank
  20. Ellaquai Dehati bank
  21. Gramin Bank of Aryavart
  22. J& K Grameen Bank
  23. J&K State Cooperative Bank
  24. Jalgaon Janata Sahakari Bank Ltd.
  25. Janta Sahakari Bank Ltd
  26. Jharkhand Gramin Bank
  27. Jharkhand State Co-Operative Bank Ltd.
  28. Kalupur Commercial Co-operative Bank Ltd.
  29. Karad Urban Co-operative Bank Ltd.
  30. Karnataka Vikas Grameena Bank
  31. Kashi Gomti Samyut Bank
  32. Kaveri Grameena Bank
  33. Kerala Gramin Bank
  34. Kerala State Co-Operative Bank Ltd.
  35. Langpi Dehangi Rural Bank
  36. Madhya Bihar Gramin Bank
  37. Madhyanchal Gramin Bank
  38. Mahanagar Co-Operative Bank Ltd.
  39. Maharashtra Gramin Bank
  40. Manipur Rural Bank
  41. Meghalaya Co-Operative Apex Bank Ltd
  42. Meghalaya Rural Bank
  43. Mehsana Urban Co-Operative Bank Ltd.
  44. Mizoram Cooperative Apex Bank Ltd.
  45. Mizoram Rural Bank
  46. Nagaland Rural Bank
  47. Narmada Jhabua Gramin
  48. Nutan Nagarik Sahakari Bank Ltd.
  49. Odisha Gramiya Bank
  50. Odisha State Cooperative Bank
  51. Pandyan Grama Bank
  52. Pragathi Krishna Gramin Bank
  53. Prathama Bank
  54. Prime Co-operative Bank Ltd.
  55. Punjab & Maharashtra Co- operative Bank Ltd
  56. Punjab GRamin Bank
  57. Purvanchal Bank
  58. Rajasthan Marudhara Gramin Bank
  59. Rajkot Nagarik Sahakari Bank Limited
  60. Sangli Urban Co-Operative Bank Ltd.
  61. Sardar Bhiladwala Pardi People’s Co-Operative Bank Ltd.
  62. Sarva Haryana Gramin Bank
  63. Sarva UP Gramin Bank
  64. Sarvodaya Commercial Co- operative Bank
  65. Satlij Gramin Bank
  66. Saurashtra Gramin Bank
  67. Shikshak Sahakari Bank Ltd.
  68. Shree Panchganag Nagari Sahakari Bank Ltd.
  69. Shri Mahila Sewa Sahakari Bank Ltd.
  70. Sikkim State Co-Operative Bank Ltd.
  71. Telangana Grameena Bank
  72. The Ahmedabad Mercantile Co- operative Bank Ltd.
  73. The Bharat Co-operative Bank (Mumbai) Ltd.
  74. The Goa State Co-Operative Bank Ltd.
  75. The Greater Bombay Co- operative Bank Ltd.
  76. The Gujarat State Co-operative Bank Ltd
  77. The Kalyan Janata Sahakari Bank Ltd.
  78. The Nawangar Co-operative Bank Ltd.
  79. The Punjab State Cooperative Bank Ltd.
  80. The Surat People’s Cooperative Bank Ltd.
  81. The West Bengal State Co- operative Bank Ltd.
  82. Tripura Gramin Bank
  83. Utal Grameen Bank
  84. Uttar Bihar Gramin Bank
  85. Uttarakhand State Cooperative Bank Ltd.
  86. Uttarbanag Kshetriya Gramin Bank
  87. Vanachal Gramin Bank

 For more information on CLSS, click here, and here for the official website of the Ministry of Housing and Urban affairs.

EMI under PMAY scheme

Another merit of the PMAY scheme is that it makes it easier for those who are economically weaker to buy a home loan through EMIs at affordable and fair rates of interest.

It is very easy to calculate your EMI account, the provision is available in the official website.

    1. Visit the official website of Pradhan Mantri Awas Yojana- click here to directly go to the EMI calculator page
    2. Fill in the details asked- Total loan amount (in Rs), Rate of Interest, Total Loan Period (in Months)
    3. Click “Calculate” to get results.

Calculate EMI here


With an increase in subsidized loan amount to Rs 12 Lakh, the scheme is expected to cover a larger proportion of the urban poor. For those in the low and mid-income sections, the PMAY reduces the cost of purchasing a home by Rs 1 lakh to Rs 2.3 Lakh. The increase in loan amount to Rs 12 Lakh and the extension of the scheme to cover the mid-income groups will make the dreams of more affordable homes come true.

According to a report published by livemint, as of December 2019-

  • 30 lakh houses have been constructed and a total of 57 lakh houses are under construction.
  • “Compared to the earlier JNNURM scheme, PMAY (U) has achieved 10 times more in a span of 4.5 years, whereas the earlier scheme had taken 10 years to achieve a significantly less number”, mentioned the report.
  • The wide-spread construction activities have resulted in employment generation.
  • Across six states, six lighthouse projects are being implemented so as to act as a laboratory to execute eco-friendly and green methods of construction and development.


To adapt faster, efficient, and green technology of construction, a Technology Sub-Mission has been set up. It will also look into the layout designs and building plans specific to various climatic and geographic zones. The Sub-Mission will coordinate with different regulatory bodies, states, and cities to ensure the efficient reach of modern methods of construction.

According to the Ministry of Housing and Urban Affairs, 

The Sub-Mission will work on the following aspects:

  • Design & Planning
  • Innovative technologies & materials
  • Green buildings using natural resources and
  • Earthquake and other disaster resistant technologies and designs. Simple concept of designs ensuring adequate sunlight and air should be adopted.

A technical cell has been set up in the Building Materials and Technology Promotion Council (BMTPC) under the Ministry to support the Sub-mission.

Among various other success pointers, these are a few.

PMAy by

How to apply for the scheme

You can apply for the PMAY scheme both online and offline. Here is a step-by-step guide for you if you choose to apply online:

  • Visit the official website for Pradhan Mantri Awas Yojana-
  • Click on the “Citizen Assessment” drop-down option. Click on either the “For slum dwellers” or  “Benefit under 3 components” as per your category.
  • Fill in your Aadhaar card number and enter the application page.
  • Fill in the necessary details accurately.
  • Download the application form.
  • Print the page for reference.
  • Submit the form at your nearest CSC office outlet and financial institution/banks along with the necessary

Steps for Changing/ Editing Details After Application:

    • Visit the official website for Pradhan Mantri Awas Yojana-
    • Fill in Application reference number and aadhar card details
    • Click on “Edit”




The Pradhan Mantri Awas Yojana or PMAY scheme aims to provide affordable “housing for all” by the year 2022. The mission started in June 2015 and has been rapidly progressing ever since.

The main objectives of the scheme include building affordable houses with round-the-clock water and electricity supply as well as sanitation; addressing the shortage of nearly 20 million housing units for rural and urban poor; slum rehabilitation.

The PMAY has two main components based on where it is being implemented- the Urban Scheme and the Gramin Scheme.

The prime target groups for the schemes are categorized based on income criteria– Economically Weak Sections of EWS (annual income up to Rs 3 lakh); Low Income Groups of LIG (Annual income lies between from 3 lakhs and 6 lakhs); the scheme is also extended to Middle Income Groups or MIG (which is further classified into MIG 1- annual income between 6 Lakhs and 12 Lakhs, and MIG 2- annual income between 12 Lakhs and 18 Lakhs).

Based on these categories, income subsidies, carpet area, etc are specified.

Some features of the scheme include eco-friendly methods of construction and development, Credit Linked Subsidy, women empowerment, and so on.

We then looked into the details of the Credit Linked Subsidy Scheme and how it addresses both the demand for affordable housing as well as the Government’s want to increase credit flow in institutions to meet the housing needs of urban poor.

We studied the various achievements of PMAY so far and learned how to apply for the scheme online.

For any queries regarding the PMAY scheme, here are some customer helpline numbers via

  1. 1800-11-6163 (Urban, HUDCO)
  2. 1800-11-3388 (Urban,NHB)
  3. 1800-11-3377 (Urban,NHB)
  4. 1800-11-6446 (Gramin)

For region-specific information, you may use the following pages:


PMAY- Axis Bank

I hope this guide helped you gain a detailed and comprehensive outlook on the PMAY scheme.

For more information, do refer to the further resources I’ve mentioned below:

Here are some helpful videos for further reference:

FAQs on Pradhan Mantri Awas Yojana

Who is eligible for Pradhan Mantri Awas Yojana?

Ans.) The prime target groups for the schemes are categorized based on income criteria– Economically Weak Sections of EWS (annual income upto Rs 3 lakh); Low Income Groups of LIG (Annual income lies between from 3 lakhs and 6 lakhs); the scheme is also extended to Middle Income Groups or MIG (which is further classified into MIG 1- annual income between 6 Lakhs and 12 Lakhs, and MIG 2- annual income between 12 Lakhs and 18 Lakhs). Based on these categories, income subsidies, carpet area, etc are specified. 

How to Apply for the PMAY scheme?

Ans.) You can apply for the PMAY scheme both online and offline. Here is a step-by-step guide for you if you choose to apply online:

  • Visit the official website for Pradhan Mantri Awas Yojana-
  • Click on the “Citizen Assessment” drop-down menu. Click on either the “For slum dwellers” or  “Benefit under 3 components” as per your category.
  • Fill in your Aadhaar card number and enter the application page.
  • Fill in the necessary details accurately.
  • Download the application form.
  • Print the page for reference.
  • Submit the form at your nearest CSC office outlet and financial institution/banks along with the necessary

How to check your name in PMAY 2019 Beneficiary List?

Ans)  Go to the official website of PMAY.

  • Find the “Search Beneficiary” drop-down menu and click on the “Search by Name”
  • Enter the first 3 characters of your name. Click “Show”.

Is Pradhan Mantri Awas Yojana available to existing home loan borrowers?

Ans) No. An existing home loan borrower is not eligible for the scheme. Only the people who match the eligibility criteria can avail the benefits of the PMAY scheme.

How can I get a loan under PMAY?

Ans.) Eligible applicants may apply for loans in his/her preferred bank of Non-Banking Financial Company. The application form will ask for various details of the applicant including, investments, other loans, income, properties, etc.

How do I check my PMAY list? 

Ans.)Go to the official website of PMAY.

  • Find the “Search Beneficiary” drop-down menu and click on the “Search by Name”
  • Enter the first 3 characters of your name. Click “Show”.

What is the PMAY scheme?

 Ans.) The Pradhan Mantri Awas Yojana or PMAY scheme aims to provide affordable “housing for all” by the year 2022. The mission started in June 2015 and has been rapidly progressing ever since.

The main objectives of the scheme include building affordable houses with round-the-clock water and electricity supply as well as sanitation; addressing the shortage of nearly 20 million housing units for rural and urban poor; slum rehabilitation.

What is Pradhan Mantri Awas Yojana (PMAY)- Credit Linked Subsidy Scheme (CLSS)?

 Ans.) The Credit Linked Subsidy Scheme addresses the demand for affordable housing as well as the Government’s want to increase credit flow in institutions to meet the housing needs of urban poor.


Understand REIT: Real Estate Investment Trust A Complete Guide 2020

The definitive guide to help you easily comprehend Real Estate Investment Trusts, their types, advantages & disadvantages, functioning, and more.

Real Estate Investment Trust REIT Guide by LivyoungRealty.comDid you know that 44% of American households own REIT stocks? What is it about Real Estate Investment Trusts (REITs) that make it widely trustworthy, liquid, and tempting to invest in? Well for starters- what are REITs?

In this blog, I will help you get a detailed understanding of REITs in the easiest way possible, by covering the following topics:

  1. What Are REITs?
  2. Types Of REITs
  3. Qualifications Of REITs
  4. 5 Most Common REITs
  5. How To Invest In REITs & Tips For Smart Investments
  6. Advantages & Disadvantages Of REITs
  7. Which Is the Better Option- Investing On Your Own Vs Investing In REITs
  8. Conclusion
  9. Resources For Further Information

So let’s dive in!

What are REITs?

Real estate investment trust (REIT) Guide by LivyoungRealty.comConceptually, REITs are known to be very similar to mutual funds. REITs or Real Estate Investment Trusts are companies that buy and manage large-income producing Commercial Real Estate (CRE) properties– such as office buildings, hospitals, shopping centers, etc. A REIT primarily allows the public to invest in these buildings, without having to actively own them. This simply means that you will be a shareholder and receive the dividend from the property you invest in, without having to buy, manage or operate- all of which will be taken care of by the REIT company. The public shareholders, or you, get the majority ownership in the stock, and the REIT company gets minority ownership. Simply put, upon investing, shareholders get 90% of the taxable income from the REIT as their dividend.

This idea of REITs was conceptualized by Congress in the United States, in the year 1960. Congress was looking to figure out a way that allows the public to invest in large income-producing commercial real estate, without actually buying it. SEBI introduced REITs in India in 2007, and is still the regulating authority for the same. India saw its first REIT- Embassy Office Parks REIT (a joint venture of US private equity firm Blackstone Group and Embassy Group), in March 2019.

Now that we have understood the basic concept of a REIT, let’s move on to knowing its different types:

Types of REITs

REITs are widely categorized into three types– Equity, Mortgage and Hybrid REITs

  • Equity REIT

In an Equity REIT, Commercial Real Estate Properties are physically owned and operated. Owners of Real Estate Properties lease it to companies and individuals to make money. This income is then distributed among REIT investors (public shareholders) as dividends.

  • Mortgage REIT

In a Mortgage REIT, investment is made on the loans, and money is made off of the loans.

Mortgage REITs lend money to real estate owners and operators either directly (through mortgages and loans), or indirectly (through the acquisition of mortgage-backed securities).

They earn via Net Interest Margin which, simply put, is nothing but the difference of interest earned on mortgage and cost of funding the loans. This income is then distributed to you, a public shareholder, as dividends. In other words, income is drawn from the interests earned on the investment in mortgages or mortgage-backed securities.

  • Hybrid REIT

Hybrid REITs invest in both Equity and Mortgage REITs.

Qualifications of REITs

There are various eligibility criteria for a company to qualify as a REIT. Generally, these are as follows:

A qualified REIT

  • Must have a long-term investment horizon with the property
  • Must invest 75% of its assets in real estate.
  • Must derive 75% of its gross income from real estate itself (could be rental income, mortgages, etc)
  • Must ensure that 90% of the taxable income from the REIT is paid out to the shareholders to hold on its standing.
  • Must be taxable as a corporation per the IRS which lays all the rules and oversees REIT qualification (for the USA). For India, the SEBI oversees REIT
  • Must have a minimum of 100 shareholders.
  • Must ensure that no more than 50% of the shares are held by 5 or fewer individuals
  • Must ensure that only 10% of the total investment is in real-estate under construction.

Know more about SEBI’s regulations for REITs here:

5 Most common REITs

  • Retail REITs– Own and manage shopping malls.

These comprise 24% of overall investments in terms of REITs in the US. They focus on large regionalReal Estate Investment Trust (REIT) Guide by malls, outlet centers, grocery-anchored shopping centers and power centers that feature big-box retailers.

When considering opting for Retail REITs, keep in mind the future of shopping centers. Given the worldwide shift to online shopping, it is a safer bet to predict that shopping malls in the long term may not actively function like today.

  • Residential REITs– Own and manage large apartments.

When planning on investing in residential REITs, consider the following two factors:

Population, movement of people and demographics

Jobs in the locality of the property you’re planning to invest in through residential REIT.

  • Office REITs– Own and manage a variety of office buildings.

An important fact to note while looking into this is that the future of investments in office buildings, tend to go with the economy.

  • Healthcare REITs– Investment in hospitals, nursing centers, medical office centers, retirement facilities, etc.

Health care REITs own and manage a variety of healthcare-related real estate and collect rent from tenants.

  • Mortgage REITs (mREIT) – Invest in mortgages.

These comprise 10% of US’s REIT investments. An individual may buy shares in a REIT, which is listed on major stock exchanges, just like they do for any other public stock.

How to invest in REITs & Tips for smart investments

Most of the REITs, especially the ones mentioned above, are publically listed. They are listed in stock exchanges so that investors can buy units in the trust. When talking about enlistment, there are three types of REITs to consider:

This page has a list of Publicly Traded REITs-


  • While choosing which REIT option works best for you, keep in mind these 2 performance factors. A good REIT has a decentReal Estate Investment Trust (REIT) Guide by
  • Dividend yield and
  • Long- Term Capital Appreciation.
  • Make sure the company has a strong management and loads of experience. Although the experience part can be overlooked when it comes to India since REITs in the country are relatively new.
  • Only invest in REITs that promise quality– quality buildings, quality tenants. This usually includes keeping in mind how long in time the lease contract of the tenant stands, so as to ensure maximum stability in your dividend.
  • A good economic stronghold is a very imperative part when considering investing in REITs. Would you rather invest in a REIT in Mumbai with holdings of average office buildings, or invest in a REIT in Chandigarh with first-class office buildings?

Your answer should be the holdings of average office buildings in Mumbai because Mumbai is a city with a bigger economic powerhouse, therefore, ensuring safety to your investment.

Advantages and disadvantages of REITs

Let’s elaborate on the above table of comparison between the advantages and disadvantages of investing in a REIT.


  • Public gets a higher dividend:

Since REITs have to pay 90% of their income back to the shareholders/investors- as an investor, REIT benefits you by getting you a higher dividend compared to the rest of the stock market/ other investment options.

  • Income can be secured with the help of long-term leases:

 Say you invest in a REIT that in turn invests in an office building that has an anchor tenant. It is most likely that this tenant has a 15-20 years’ long term lease contract, from which you can benefit off of. In other words, it guarantees you a steady and secure income in the long run.

  • Liquidity:

 Compared to direct investments, REITs have lower liquidity risks. Since a considerable amount of the major REITs are publically listed, it allows you to buy and sell at will. This makes REIT a very liquid investment. 

  • Professional Management:

Imagine having to buy a Commercial Real Estate property, manage and operate it, do the accounting, and a hundred other things that come with holding a CRE property- all by yourself. Leaving it up to a REIT saves you all the trouble, without having to compromise on the benefits.

  • Transparency: 

The Securities and Exchange Board of India (SEBI) is the regulating body for all REIT activities in the country. Since it is overlooked by this well-renowned and trusted government agency, investing in a REIT promises transparency to the shareholder. This also means chances of occurrence of fraud are decreased to a large amount.

In the US, the Security Exchange Commission (SEC) is the regulatory body for REITs who have to turn in periodic disclosures of their performances.

  • Not as capital intensive as direct investments in properties:

This is because REIT eliminates the need for the public to directly buy/own and manage the property. Besides, the dividends are often higher than you can achieve with other investments.


  • Lack of Diversification: 

Let’s say you invest in a Healthcare REIT, in a hospital- if the hospital sector doesn’t do well then neither does your stock. Healthcare REITs only deal with hospitals, nursing homes, etc; if you invest in a Retail REIT, they only manage shopping centers, regional malls, etc. If one of those two sectors don’t perform well, then your stock doesn’t either. This lack of diversification proves as a disadvantage while considering investing in a REIT. 

  • Slow Growth: 

What we learned as an advantage previously can also pose as a limitation. Since REITs have to give out 90% of their income to the shareholders, they are left with a mere 10% to re-invest to buy new holdings/ for their core product line.

  • Tax Treatment:

Another downside to investing in a REIT is that your dividend is taxed as your regular income. So if you are a high paying person investing in a REIT, you will be paying a lot of taxes. 

  • Losses don’t pass to investors: 

One of the biggest reasons to invest in Commercial Estate is because of all the tax benefits, as an investor you get write-offs. Although in this case, those write-offs are trapped into a REIT, making it another disadvantage while investing.

 These are the pros and cons to be considered while investing in a REIT.

We’ve so far covered what a REIT is/ what is its basic objective, its types, qualifications/ eligibility for it to be called a REIT, 5 most common REITs, tips on investing in a REIT as well as the pros and cons.

Now that you have studied and comprehended everything about Real Estate Investment Trusts, can you find yourself asking- Is it better to do my own investing rather than in a REIT?

Before concluding, I’m going to dive into this question and provide you with an analysis of investing in REITs as compared to investing yourself.

Investing in a REIT vs Investing yourself 

Refer to the table below for a comparative analysis:

It is for you to decide now, what suits you the best!

Real Estate Investment Trust (REIT) Guide by


Real Estate Investment Trust or REIT is a dividend-paying stock introduced by the Congress in  1960, in America. It allows the public to invest in a large income-producing commercial real estate properties without having to directly own or buy the properties.

REITs can be of three types. Equity REITs physically invest, own/operate commercial real estate properties. Owners of these properties lease it to companies/individuals and this income is distributed among shareholders as dividends.

Mortgage REITs make money off of mortgage loans and draw income via Net Interest Margin (difference of the interests earned on mortgage and the cost of funding the loan).

Hybrid REITs combine the functioning strategies of both equity and mortgage REITs.

There are various qualifications that make a REIT eligible to be called one. An important qualification is that a REIT should payout 90% of its income back to the shareholders. There are many other qualifications. In India, SEBI is the regulatory authority for REITs.

The five most common REITs would be Retail REITs (shopping centers, regional malls, etc); Healthcare REITs (hospitals, nursing centers, medical offices, etc.); Office REITs (office buildings); Residential REITs (large apartment buildings, etc.); and Mortgage REITs.

We studied the three types of REITs when it comes to the way they’re enlisted- Publicly listed, Public but not listed, and Private REITs. We also went through ways to make smart investments while opting for REITs.

We then studied the pros and cons of investing in REITs. Some pros include, larger dividends, liquidity, professional management, transparency, stable cash flow, etc. Some cons include slow growth, taxation of dividends as regular income, etc.

We then analyzed whether it would be better to invest in REITs or invest by ourselves.

I hope you are now thorough with everything concerning REITs and are ready to make informed decisions on whether or not to invest and how to invest in them. You now have a detailed comprehensive outlook on this topic and are fully educated about the same!

Let us know in the comment box, your favorite REIT type. Share more information if you have any.

Just in case you want more information, here are some resources you can further refer to in order to better your understanding:


Here are some extremely helpful videos for further research:

I personally recommend the following video. It gives you a very detailed and comprehensive outlook towards the topic:


How to find Villa Plots in 2020 Definitive Guide

The definitive guide to finding affordable, ready-to-build residential lands in no timeLuxurious Villa Plots by

With urbanization increasing rapidly at a rate of 34% annually, did you know that more number of people are turning towards residing in peaceful villa plots?

The idea of living in a calm and comfortable environment over largely-cluttered apartments comes off as a dream too good to be true.

You can make that dream come true!

Using this blog, you will learn how to find the most valuable plots for your new luxury dream home. You will be more than well-equipped to search for cost-efficient, well- laid out plots located in fast-growing suburban areas, in no time.

Here is my step-by-step guide for you to become your own property broker!


  1. What is Classified as a Villa Plot
  2. Must have amenities
  3. Understanding the Cost and Investment
  4. Choosing the Perfect Location
  5. Finding and Comparing Plots
  6. Conclusion

So let’s dive in!


A villa is popularly known as a large detached structure built amidst a spacious land that’s surrounded by various infrastructural amenities. It is generally more luxurious when compared to flats, apartments, or regular independent houses. They are usually located in well-laid-out gated communities providing the best residential experience, setting a great example for a modern community living.

Villas are built in pre-demarcated plots. They usually have two or more floors.

Luxurious residential Villa Plots by


Finding the most suitable villa plot for your new family home is a long process, I’m here to help you consider all the important factors while searching for your luxurious dream house.

These are some must-have infrastructural pointers that you can’t avoid considering while hunting for plots.

  • Uninterrupted Electricity and Water Supply

The last thing you want after settling into a perfect home is to have hours of waiting on hold to get in contact with the EB and Water Board. While looking for your plot, be sure to check that it is located in a place that has 24×7 supply of both clean water and electricity.

A good way to double-check would be to find out from the residents living in and around the plot.

  • Clubs & Internal Facilities

Nobody wants to spend their New Year’s Eve all alone, you’d much rather join with a bunch of people and participate in the Villa Society’s grand celebrations! Clubs and recreational facilities are an integral part of our social quality of living. While looking for plots in gated communities, there is no harm in checking about the happening of such social activities. This will only be another aspect of worth for your investment.

  • Children’s Play Area

Most gated communities today have two or more assigned areas for children to play around in. When searching for a well-rounded home for your family, make sure to choose a plot that is amidst such facilities.

  • Pool and Other Amenities 

Let’s face it, villas are comparatively bigger investments and when you are willing to make way for such a price, you deserve the best of the luxurious amenities! Plots in Gated Communities today mostly come surrounded with a grand Club House that typically include a swimming pool, parks, badminton/tennis courts, Indoor games, Gym, Multi-purpose area, and so on.

Remember that all of these are your price’s worth, and therefore must have amenities when considering purchasing a villa plot.

Make sure to list at least 5-6 amenities that you require for your ideal standard of living, and filter your search accordingly. 

Luxurious Residential Plots VIllasby


On an average, land in India is said to cost Rs. 20,00,000 per acre. This will definitely vary between cities, amenities, the builder, whether the plot is located in a growing suburban area, etc.

For example, Mantri Hills in Bangalore have premium villa plots starting from Rs. 23.88 Lakhs, considering that this is an integrated township with several amenities and that it is located in a metropolitan city.

In order to get the most valuable cost solution, you’re going to have to compare the prices simultaneously. Here’s a simple tool for you to do that in one go–

The above link is a resource to find Rates and Trends for various residential lands across the country. You may customize and search for the city and locality you wish to own a residential plot in, check and compare the rates to make an informed decision.


 Now that you have zeroed down on your necessary amenities and price range- choosing the perfect location to purchase your plot in will be a child’s play.

You need to keep in mind that the location has well-maintained connectivity to the following:

  • 24×7 Medical Assistance 

It is always wise to be vigilant assuming cases of emergencies. Try not to find a plot that’s too isolated from hospitals or medical facilities.

  • Schools/ Colleges

When searching for a plot to build your perfect family home, it is always an added benefit if there are educational facilities accessible in and around the plot. It saves time, energy, and the cost of transportation.

  • Metro/ Bus Facilities

Although locating a plot that is near a metro or a bus station might cause a crowded area, it is never too bad to have transportation connectivity accessible from where you live.

Some people might recommend you to zero down on your location as your first step, but it all comes down to what you prioritize more.

Once you’ve prioritized such necessities and your optimum price range, finding the right location to own a plot will not be that difficult.

Luxurious Villa Plots by


Today there are various resources on the internet to find plots sitting in the comfort of your home. It not only saves you the trouble of coordinating with a broker, but it also helps give you a detailed comparative analysis while making such an important life- decision.

Here are some popular websites that list out various villa plots for sale:

Luxurious NA Bunglow Plots by


Purchasing a plot to build a new home is always an intimidating decision to make. You will have to consider factors from every angle while planning for your future home. Through this step-by-step guide, you learned what needs to prioritize and how to keep in mind these needs while searching for plots. There is no hard and fast rule as to this is how your priority amenities must be or a specific order of contents to follow while searching, it all comes down to your ideal standard of living and comfort priorities.

I hope you find your most suitable plots with state-of-the-art amenities, and make your dream home come true!

Why is Jared Kushner a villain in the eyes of the pandemic era?

Everything you need to know about why the Senior Advisor to the President of the United States, is being looked down upon world-wide.

Jared Kushner

Image Credit:

 Jared Kushner has been in the news alot lately. The son-in-law of the President of the United States, is being actively criticised not just for his widely-popular eviction lawsuits fiasco, but also for turning a blind-eye against the pandemic guidelines.

How did this real estate tycoon manage to stir political rage? Keep reading to find out more!


  1. The Eviction Lawsuit Fiasco
  2. Unkept Promises & Nepotism
  3. Insensitivity Towards Pandemic Guidelines
  4. Conclusion


Kushner Companies

Image Credit:

 Kushner’s family real estate company that controls about 23,000 apartment units under its now infamous name, has been continuing its eviction lawsuit and debt collection practises insensitively. This only ends up causing undue stress, especially when the Coronavirus pandemic is increasing unemployment rates and generally producing a pessimistic economic environment.

“At least 15 tenants in New Jersey and Maryland have been on the receiving end of lawsuits from Kushner-owned properties even after both states declared states of emergency. Govs. Phil Murphy, D-N.J., and Larry Hogan, R-Md., have both called for a moratorium on evictions and courts have been closed, postponing hearing dates for a range of debt collection-related activities”, says Lee Fan in a report by The Intercept

Westminster Managements, a unit under the Kushner Companies, even went so far as calling  for sheriff services to evict a resident of the Harbor Point Estate, owned by the Kushner Companies, in Essex. This is just one of the many more evidences of eviction practices that remain on record- March 30th, a collection lawsuit was filed against a man in the same complex by the Kushner Companies. March 19th- Tenants face no less than six lawsuits filed against them by Oxford Arms, yet another Kushner owned apartment unit in New Jersey, and the list goes on.

Threatening eviction and debt penalties on tenants when there is already wiide-spread anxiety of a pandemic in the picture, is dangerous socially and economically. ProPublica talks about the shocking, unfair and humiliating eviction practices by the Kushner Companies and gives a detailed report on how it affects the tenants residing in those units.

Wide spread eviction practises and aggressive debt lawsuits even on small debts are not the only reasons that have made Kushner untrustworthy in the eyes of Americans, and citizens worldwide.

Keep reading to find out why!


Donald Trump Jared Kushner

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 According to a report by Vanity Fair, Jared Kushner’s family business appears to be capitalising over the White House’s Coronavirus Relief Bill that allows owners of low-to-moderate income housing to temporarily freeze mortgage payments. Thousands of such units are owned by Kushner. Kushner’s family real estate firm would be receiving federal assistance with the mortgage payments, in exchange for not evicting tenants who are unable to pay rent during the current COVID-19 crisis.

Now the question of the hour is, could the son-in-law of the President of the United States himself be taking advantage of this bill?

Keeping in mind that Kushner has not had the best trackroad when it has come to political administration, remind yourself of how he clearly was not of great help during the Israel-Palestine peace talks; or with his own real estate firm as we saw preciously- what is to say that he doesn’t capitalize on the relief bill for the needs of his own firm?

Those are not the only two reasons that plant doubts in the minds of Americans when talking about Kushner- unkept promises is another. As the Senior Advisor at the White House, his promise of implementing a nationwide network of drive-through testing sites did not materialise. His role, therefore, in managing the pandemic crisis is now in jeopardy in the eyes of many.

“Just like his dismal peace-making efforts in the Middle East, Kushner has added another layer of confusion to the muddled White House coronavirus response by, for example, promoting the speedy development of drive-thru nationwide testing sites that still haven’t materialized”, says the National Security Analyst of CNN, Peter Bergen in a report titled “Time To Fire Jared and Ivanka”, which also talks about his lack of responsibility towards the pandemic guidelines, which we will be covering next:


Ivanka Trump and Jared Kushner

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According to an article by The New York Times, Jared Kushner along with his spouse, Ivanka Trump, and his three children travelled to the Trump National Golf Club Bedminster in New Jersey to celebrate the first night of Passover this month. This clearly disregards the clear orders of the Mayor of Washington DC, that stated that all residents of DC (including the couple) are to stay at home unless they are obtaining medical care, are a part of essential functions, or performing small recreational activities, effective from April 1.

Kushner and his wife broke the guidelines against discretionary travel and hypocritically so. Ivanka Trump posted an inspirational message on her twitter urging the importance of social distancing and reassuring citizens that “we are all in this together”- fan of ironies?


Jared Kushner

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 “We don’t live in a monarchy in the United States and it’s long past time for Prince Jared and Princess Ivanka to rejoin the private sector”, says Mr. Peter Bergen from a report I previously mentioned- “as the only constant of the consistently inconsistent Trump is that he will fire pretty much everyone in his orbit, but not members of his own family, no matter how feckless they are.”

Be it the stir against nepotism, his unfair practises through his well-known real estate firm, or his disregard for government-issued guidelines; Jared Kushner paints an image of himself as knowing better than anyone, but does he?

Although he has stated in the past that he has stepped down from the everyday management of his real estate firm, he is still known to receive millions of dollars annually through rent incomes, having the net worth of a whopping $800 million.

Is it the hypocrisy that makes Kushner an unsuitable figure of trust among Americans, or his irresponsibility from unkept promises and insensitive evictions? It is all of this, and possibly  more, that buys him the picture of a villain in sensitive times like these.