Home Loan Subsidy by Government in 2025 – Eligibility and Rules

Table of Contents

• Credit-Linked Subsidy Scheme Helpline Number
• PMAY Home Loan Subsidy 2025 Categorization
• PMAY Home Loan Subsidy
• Pradhan Mantri Awas Yojana(PMAY) 2025
• Home Loan Subsidy Eligibility Criteria
• Who Can Apply for a Home Loan Subsidy Under PMAY?
• Application Process for Home Loan Subsidy
• How to Apply for a Home Loan Subsidy
• Documents Needed & Subsidy Disbursement Timeline
• Why Opt for a Home Loan Subsidy under PMAY?
• What is the Credit-Linked Subsidy Scheme (CLSS)?
• PMAY-CLSS Scheme
• PMAY Subsidy Calculator
• How Do I Check the Status of the PMAY Subsidy?
• CLSS Revival for MIG Homebuyers
• PMAY‑CLSS Explained: Eligibility, Subsidy & Loan Cap
• How to Apply for PMAY CLAP Home Loan Subsidy Online
• State-Wise Portals & Supplementary Schemes
• Sample Saving Scenarios: EWS vs. MIG-I Savings Over 20 Years
• 10 Banks Offering Govt Subsidy on Home Loan by the Government in 2025

Credit-Linked Subsidy Scheme Helpline Number

For assistance or inquiries about the Credit-Linked Subsidy Scheme under PMAY, beneficiaries and applicants can contact the helpline number provided by the Ministry of Housing and Urban Poverty Alleviation.

PMAY Home Loan Subsidy 2025 Categorization

MIG II

Under the MIG II category, an individual can avail of a housing loan subsidy on a maximum loan amount of ₹12 lakh, with the subsidy inteOwning a home is now within reach for many Indian families, thanks to the Pradhan Mantri Awas Yojana (PMAY). As of 2025, more than 1.5 crore households have benefited from government-backed home loan subsidies. The updated PM Awas Yojana Urban 2.0 scheme provides eligible applicants with a subsidy of up to ₹2.67 lakh, and the 2.67 lakh subsidy on home loan last date to apply is 31 December 2025. With these initiatives, affordable home loans are helping families finally secure their dream homes, making housing more accessible than ever.

PMAY Home Loan Subsidy

The Pradhan Mantri Awas Yojana (PMAY), also known as प्रधानमंत्री ग्रामीण आवास योजना, offers a subsidy on home loans by the government 2025 to make affordable housing accessible across different economic sections of society. This initiative is part of the government’s broader effort to achieve “Housing for All by 2022.” Under the scheme, eligible applicants receive an interest subsidy on housing loans for the acquisition or construction of houses. 

The program aims to provide housing for everyone by facilitating affordable loans for weaker sections through the Credit-Linked Subsidy Scheme (CLSS). The subsidy varies based on the applicant’s income category and can substantially reduce the cost of borrowing by directly lowering the principal amount, which in turn reduces the EMI.

Pradhan Mantri Awas Yojana(PMAY) 2025

Suggested read: PMAY Online Application Form

Here’s the information regarding the Pradhan Mantri Awas Yojana (PMAY) 2025, organized into a tabular format for a quick view:

Home Loan Subsidy Eligibility Criteria

To understand who is eligible for the 2.67 lakh subsidy, please refer to the table below outlining the income categories and eligibility criteria under PMAY.

In addition to the income-based categories listed above, the following applicants are also eligible under the PMAY scheme:

1. Individuals belonging to the ST, SC, and OBC communities.

2. Women applicants under the LIG and EWS income groups can avail of a home loan subsidy in their name.

3. Applicants who wish to determine eligibility quickly can use a home loan eligibility calculator for the PMAY scheme.

Who Can Apply for a Home Loan Subsidy Under PMAY?

The eligibility criteria for the PMAY CLSS subsidy are fairly straightforward:

1. The beneficiary family should not own a pucca house in any part of India.

2. The family must not have availed of any central/state assistance under any housing scheme from the Government of India.

3. The house to be purchased/constructed should be in the name of the female head of the household or the joint name of the male head of the household and his wife. Only in cases where there is no adult female member in the family, the property is in the name of the male member.

Application Process for Home Loan Subsidy

1. Visit Official Website: Depending on your area (urban or rural), visit pmaymis.gov.in or pmayg.nic.in.

2. Select Category and Scheme: Choose the applicable category

3. Enter Details: Provide all necessary personal and income details.

4. Upload Documents: Submit all required documents as listed above.

How to Apply for a Home Loan Subsidy

To avail the benefits of a home loan subsidy, applicants can opt for the PMAY apply online procedure through the official portals for urban or rural schemes.

1. Website for Urban Applicants: PMAY Urban Official Site

2. Website for Rural Applicants: PMAY Gramin Official Site

Suggested read: Pradhan Mantri Awas Yojana Benefits

Documents Needed & Subsidy Disbursement Timeline

Typical requirements include:

1. Identity and address proofs (Aadhaar, PAN, etc.)

2. Income proof (salary slips, tax returns)

3. Property documents (sale agreement, title documents)

4. Loan sanction letter & declaration of no prior pucca house ownership

Subsidy is credited after all stages—verification, claim submission, approval, and transfer—are completed. It may take 3 to 6 months from the date of loan disbursement.

Why Opt for a Home Loan Subsidy under PMAY?

Opting for a home loan subsidy under PMAY can be extremely beneficial, particularly for lower to middle-income families:

1. It reduces the overall interest burden on the borrower, which can make a significant difference in the total amount repaid over the loan’s tenure.

2. The reduction in EMI can free up monthly income for other household and personal expenses.

3. It facilitates the acquisition of property that may otherwise be financially out of reach, thereby improving the living standards of the family.

Suggested read: PMAY Delhi

What is the Credit-Linked Subsidy Scheme (CLSS)?

The PMAY scheme offers subsidies on home loans by the government to individuals if they meet the requisite criteria. The subsidy on home loan interest under the PMAY subsidy scheme is provided through the Credit-Linked Subsidy Scheme (CLSS), which is a component of the PMAY. The CLSS scheme offers a government subsidy on home loans to applicants who fall under the following income categories:

1. MIG–II (Middle Income Group 2)

2. MIG – I (Middle Income Group 1)

3. EWS (Economically Weaker Section)/LIG (Low Income Group)

4. Revised EWS (Economically Weaker Section)/LIG (Low Income Group)

Pradhan Mantri Awas Yojana – Credit Linked Subsidy Scheme (PMAY-CLSS Scheme) Key Details

The PMAY-CLSS offers interest subsidies on home loans based on income categories, helping reduce EMIs and make housing more affordable. Here’s a quick overview of the benefits:

rest being 3% p.a. The maximum term of a loa,n based on which the subsidy can be calculated, is 20 years. The maximum subsidy amount that is available under this scheme is ₹2.30 lakh.

MIG I

Applicants belonging to the MIG I category can avail of a home loan subsidy at the rate of 4% on a maximum loan amount of ₹9 lakh. The maximum subsidy amount one can get under this category is ₹2.35 lakh. The maximum loan tenure that will be taken into consideration for the calculation of the loan subsidy is 20 years.

EWS/LIG

Those falling under the Economically Weaker Sections (EWS) or Low Income Group (LIG) category can get a subsidy at the rate of 6.50% on a loan amount up to ₹6 lakh. The maximum subsidy loan amount one gets under this category is ₹2.67 lakh subsidy on a home loan. The maximum loan term for which the house loan interest rate subsidy is being offered is 20 years.

Suggested read: PMAY Gramin

How to Use Pradhan Mantri Awas Yojana (PMAY) Subsidy Calculator

To use a Pradhan Mantri Awas Yojana (PMAY) subsidy calculator, you can follow these general steps:

Suggested read: PMAY Urban

How Do I Check the Status of the PMAY Subsidy?

There are 3 ways by which you can check the status of your Pradhan Mantri Awas Yojana (PMAY) subsidy:

1. Online Using Aadhaar or Application ID

• Visit the official PMAY website (https://pmaymis.gov.in).

• Navigate to the ‘Citizen Assessment’ section and select the relevant category for your application.

• Enter your Aadhaar number or PMAY application ID, then submit the form to view the status of your application

2. Using the Assessment ID

• Similar to the above method, navigate to the ‘Track Your Assessment Status’ section on the PMAY website.

• Enter your Assessment ID and submit to check your subsidy status.

3. Via Toll-Free Number

• Call the PMAY customer service at 1800-11-3377 or 1800-11-3388. You will need to provide your application details over the phone to receive information about your subsidy status.

Budget 2025 Updates: CLSS Revival for MIG Homebuyers

Budget 2025 has revived hopes for the affordable housing segment by reintroducing the Credit-Linked Subsidy Scheme (CLSS) for the Middle Income Group (MIG) of homebuyers. Analysts and industry insiders expect this measure to significantly boost housing affordability and supply in Tier‑1 and Tier‑2 cities.

PMAY‑CLSS Explained: Eligibility, Subsidy & Loan Cap

The PMAY-CLSS provides income-based interest subsidies on home loans to make housing more affordable. The table below summarizes eligibility, subsidy rates, maximum loan amounts, and benefits.

Note: Subsidy calculated based on NPV at a 9% discount rate, with a tenure of up to 20 years or the actual loan period.

How to Apply for PMAY CLAP Home Loan Subsidy Online

To apply for this subsidy:

1. Visit your lender’s PMAY-registered platform or PMAY CLAP (CLSS Awas Portal).

2. Submit your loan application with all supporting documents.

3. On sanction, your Primary Lending Institution (PLI) forwards the subsidy claim to the Central Nodal Agency (e.g., NHB/HUDCO).

4. Once approved, the subsidy is credited upfront to your loan account, lowering the EMI burden.

5. Use the tracking feature on the CLSS Awas Portal to view application status in real time.

State-Wise Portals & Supplementary Schemes

The central PMAY-CLSS scheme is implemented across all states through the PMAY-CLAP portal. Additionally, some states offer supplemental subsidies or matching schemes—check the state housing board or urban development department portals for details and eligibility.

Tax & GST Benefits with Home Loan Subsidy

1. Tax Benefits: Eligible borrowers can still claim deductions under Section 24 (interest) and Section 80C (principal repayment) even after applying CLSS, subject to overall limits.

2. GST Benefits: A Potential reduction in GST burden on affordable or under-construction properties was proposed in Budget 2025 to further lower costs.

Sample Saving Scenarios: EWS vs. MIG-I Savings Over 20 Years

Below is a quick comparison of how PMAY subsidies reduce EMIs and boost savings for different income groups:

10 Banks Offering Govt Subsidy on Home Loan by the Government in 2025

Here is a list of 10 banks in India offering a subsidy on home loans by the government in 2025:

1. State Bank of India

2. Bank of India

3. Bank of Baroda

4. Axis Bank

5. Punjab National Bank

6. IDFC First Bank

7. HDFC Bank

8. Bandhan Bank

9. Canara Bank

10. IDBI Bank

Takeaway

The PM home loan subsidy under PMAY helps EWS, LIG, and MIG families make homeownership affordable. Eligible applicants can get up to 2.67 lakh subsidy on home loan, easing their EMIs and overall loan burden. Check your eligibility, use the PMAY subsidy calculator, and apply before 31 December 2025 to take full advantage of this government benefit. Don’t miss the chance to turn your dream home into reality.

FAQs about Home Loan Subsidy