Home Loan Subsidy by Government in 2024 - Eligibility and Rules

In the past decade or so, there has been an upswing in the demand for home loans across the country. One of the reasons for it could be attributed to the fact that today all major banks and financial institutions are offering affordable housing loans. Looking at this positive trend and in order to further aid home buyers, the Government of India launched a home loan subsidy scheme called the Pradhan Mantri Awas Yojna (PMAY) in 2015. Under this scheme, the government had aimed that every household in India must have a pucca house by 2022; however, the timeline of this home loan subsidy scheme has now been extended up to 2024. You can use a PMAY subsidy calculator to check the exact 2.67 lakh subsidy on home loan in 2024 that you get under the PMAY subsidy scheme.

Table of Contents

• PMAY Home Loan Subsidy
• Pradhan Mantri Awas Yojana 2024
• Credit Linked Subsidy Scheme
• Credit Linked Subsidy Scheme (PMAY-CLSS) Details
• Credit Linked Subsidy Scheme Helpline Number
• Home Loan Subsidy Eligibility Criteria
• PMAY Home Loan Subsidy 2024 Categorization
• Why opt for a Home Loan Subsidy under PMAY?
• Who can apply for a home loan subsidy under PMAY?
• How to use Pradhan Mantri Awas Yojana (PMAY) Subsidy Calculator
• How do I check the status of the PMAY subsidy?
• 10 Banks Offering Govt Subsidy on Home Loans in India

PMAY Home Loan Subsidy

The Pradhan Mantri Awas Yojana (PMAY) offers a Home Loan Subsidy to make affordable housing accessible to various economic sectors of society. This initiative is part of the government's effort to ensure "Housing for All by 2022." The scheme offers an interest subsidy on housing loans for the acquisition/construction of houses. The intent is to provide housing to all by facilitating affordable loans for the weaker sections through a Credit Linked Subsidy Scheme (CLSS). The subsidy depends on the income category of the applicant and can significantly reduce the cost of borrowing by directly subsidizing the principal amount and, consequently, reducing the EMI.

Pradhan Mantri Awas Yojana(PMAY) 2024

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Here's the information regarding the Pradhan Mantri Awas Yojana (PMAY) 2024 organized into a tabular format for a quick view:

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

1. Website for Urban Applicants: PMAY Urban Official Site
2. Website for Rural Applicants: PMAY Gramin Official Site

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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 the home loan interest under the PMAY subsidy scheme is provided under the Credit Linked Subsidy Scheme (CLSS), which is one of the parts of the PMAY. The CLSS scheme offers govt 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) Details

Under the PMAY-CLSS, beneficiaries can avail of an interest subsidy of up to 6.5% on a principal component of up to ₹6 lakhs, depending on their income category. This scheme is categorized into different groups:

1. EWS (Economically Weaker Section): Families with an annual income up to ₹3 lakh.
2. LIG (Low Income Group): Families with an annual income between ₹3 lakh and ₹6 lakh.
3. MIG I (Middle Income Group I): Families within the annual income bracket of ₹6 lakh to ₹12 lakh can avail of a subsidy of 4% on a loan up to ₹9 lakh.
4. MIG II (Middle Income Group II): Families that earn between ₹12 lakh and ₹18 lakh annually can avail of a subsidy of 3% on a loan up to ₹12 lakh.

The duration for the subsidy can extend up to 20 years or the tenure of the loan, whichever is lower. The subsidy will be credited upfront to the loan account of beneficiaries through lending institutions resulting in reduced effective housing loans and Equated Monthly Installments (EMI).

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Credit Linked Subsidy Scheme Helpline Number

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

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Home Loan Subsidy Eligibility Criteria

In addition to these, individuals belonging to ST, SC, and OBC categories are also eligible under this scheme. Further, there is a provision for subsidy on home loans for ladies under this scheme, in case they fall under LIG and EWS income groups. Individuals can also use a home loan eligibility calculator to simply check their eligibility for the PMAY scheme.

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PMAY Home Loan Subsidy 2024 Categorization

MIG II

Under the MIG II category, an individual can avail housing loan subsidy on a maximum loan amount of ₹12 lakh with the subsidy interest being 3% p.a. The maximum term of a loan 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 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 calculation of 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 home loan. The maximum loan term on which the house loan interest rate subsidy is being offered is 20 years. 

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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.

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 in 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 can be in the name of the male member.

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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:

Find a Calculator Online: You can access a PMAY subsidy calculator through various financial service providers or on the official PMAY site. One such calculator can be found on websites like BASIC Home Loan or other housing finance company websites.

Enter Your Details

1. Annual Family Income: Input the total annual income of your household.
2. Loan Amount: Enter the amount of the home loan you wish to take.
3. Loan Tenure: Specify the duration over which you intend to repay the loan.
4. Interest Rate: Provide the interest rate expected on the home loan.
5. Submission: After entering all the necessary details, submit the information in the calculator.

The calculator will display how much subsidy you are eligible for under the PMAY scheme, which will help you understand the reduced effective interest rate and how much you will save on your monthly EMIs.

Using the PMAY subsidy calculator will give you a clear idea of the financial benefits you can avail of under this scheme, making it easier to plan your finances when purchasing a new home. Make sure to use an updated and accurate calculator to get the best estimates.

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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, on the PMAY website, go to the 'Track Your Assessment Status' section.
• 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.

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10 Banks Offering Govt Subsidy on Home Loans in India

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

So if you planning to avail best housing loans in India and you fall under either EWS/LIG/MIG I/MIG II income categories, you can easily get an interest subsidy on your house loan under the PMAY scheme of the Government of India, quite easily.

FAQs About Home Loan Subsidy