{"id":341,"date":"2023-07-25T12:31:31","date_gmt":"2023-07-25T12:31:31","guid":{"rendered":"https:\/\/dev.basichomeloan.com\/blog\/?p=341"},"modified":"2026-07-15T16:35:34","modified_gmt":"2026-07-15T16:35:34","slug":"home-loan-subsidy","status":"publish","type":"post","link":"https:\/\/www.basichomeloan.com\/blog\/home-loans\/home-loan-subsidy","title":{"rendered":"Home Loan Subsidy by Government in 2026 – Eligibility and Rules"},"content":{"rendered":"
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If you\u2019re a <\/span>home loan<\/b><\/a> applicant, you would be delighted to know about home loan subsidy schemes. Under affordable housing schemes, the Government of India offers various subsidies, making buying your dream home more plausible. These home loan subsidy schemes by the government guarantee fund assistance for buying or constructing a Pucca home.\u00a0<\/span><\/p>\n

Under the \u201cPradhan Mantri Awaas Yojna\u201d (PMAY) subsidy on home loan, the government ensures that the PMAY subsidy benefits applicants living in both urban and rural areas. In this blog, we are going to discuss various PMAY subsidies, their eligibility, and the essential rules.<\/span><\/p>\n

Credit-Linked Subsidy Scheme Helpline Number<\/b><\/h2>\n

If beneficiaries have any enquiries about the Credit-Linked Subsidy Scheme under PMAY subsidy schemes, please contact the Ministry of Housing and Urban Poverty Alleviation.<\/span><\/p>\n\n\n\n\n\n
NHB<\/span><\/td>\n1800-11-3377<\/span>, 1800-11-3388<\/span><\/td>\n<\/tr>\n
HUDCO<\/span><\/td>\n1800-11-6163<\/span><\/td>\n<\/tr>\n
SBI<\/span><\/td>\n1800-11-2018<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

PMAY Home Loan Subsidy 2026 Categorisation<\/b><\/h2>\n

Under the government’s home loan subsidy, the PMAY subsidy is designed to cater to people from various categories. People may get a subsidy on a home loan based on which category they belong to.\u00a0<\/span><\/p>\n\n\n\n\n\n\n\n
Category<\/b><\/td>\nInterest Subsidy<\/b><\/td>\nMaximum Loan for PMAY Subsidy<\/b><\/td>\n<\/tr>\n
EWS (Economically Weaker Section)<\/b><\/td>\n6.50% p.a.<\/span><\/td>\n Up to \u20b96 Lakhs<\/span><\/td>\n<\/tr>\n
LIG (Low Income Group)<\/b>\u00a0<\/span><\/td>\n6.50% p.a.<\/span><\/td>\n Up to \u20b96 Lakhs<\/span><\/td>\n<\/tr>\n
MIG-1 (Middle Income Group 1)<\/b><\/td>\n4.00% p.a.<\/span><\/td>\nUp to \u20b99 Lakhs<\/span><\/td>\n<\/tr>\n
MIG-2 (Middle Income Group 2)<\/b><\/td>\n3% p.a.<\/span><\/td>\nUp to \u20b918 Lakhs<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

EWS (Economically Weaker Section)\u00a0<\/b><\/p>\n

If your household income is less than Rs. 3 Lakhs annually and you don\u2019t have a Pucca house, you can avail PMAY Subsidy for constructing a permanent house. The interest rate subsidy is <\/span>6.50% p.a., and the subsidy on home loan is <\/span>\u20b96 Lakhs.<\/span><\/p>\n

LIG (Low Income Group)<\/b><\/p>\n

Those who apply under the LIG category for PMAY Subsidy must have annual household earnings in the range of \u20b93 Lakhs & \u20b96 Lakhs. The interest rate subsidy is the same as LIG (Low Income Group), which is <\/span>6.50% p.a. You can avail the subsidy on home loan up to<\/span> \u20b96 Lakhs if you don\u2019t own a Pucca House.\u00a0<\/span><\/p>\n

MIG (Middle Income Group 1)<\/b>
\n<\/b><\/p>\n

People from MIG can avail a home loan subsidy of up to \u20b99 Lakhs at <\/span>4.00% p.a. For MIG 1 categories, the annual household income of the applicant should be between <\/span>\u20b96 Lakhs and \u20b912 Lakhs. If you or your family member doesn\u2019t have any Pucca house, you are eligible for home loan subsidy under PMAY subsidy scheme.<\/span><\/p>\n

MIG 2 (Middle Income Group 2)<\/b><\/p>\n

To be eligible for the MIG 2 scheme, your household income should be more than \u20b912 Lakhs and less than \u20b918 Lakhs. You can get up to \u20b918 Lakhs of home loan subsidy from the government and 4% interest rate subsidy.\u00a0 This subsidy on home loan ensures that people from the MIG category who don\u2019t have a house can get a permanent home with 200 sq. meter carpet area.\u00a0\u00a0<\/span><\/p>\n

PMAY Subsidy – Home Loan Subsidy by Government\u00a0<\/b><\/h2>\n

Pradhan Mantri Awas Yojna, <\/span>\u092a\u094d\u0930\u0927\u093e\u0928\u092e\u0902\u0924\u094d\u0930\u0940 \u0917\u094d\u0930\u093e\u092e\u0940\u0923 \u0906\u0935\u093e\u0938 \u092f\u094b\u091c\u0928\u093e<\/span> or PMAY, is a home loan subsidy scheme for people who don\u2019t have enough funds to build their home. These PMAY subsidy schemes cover both urban and rural citizens through PMAY-U (Urban) 2.0 and & PMAY-G (Gramin) respectively.<\/span><\/p>\n

PMAY-U (Urban) home loan subsidy by government mainly benefits people of the Lower Income Group (LIG) and the Medium Income Group (MIG). The government identifies potential beneficiaries from LIG and MIG by their annual income and gives a subsidy on the interest rate of up to Rs 1.80 lac.\u00a0<\/span><\/p>\n

Whereas, PMAY-G (Gramin) benefits people living in rural areas by providing financial help for constructing a Pucca house in rural areas.\u00a0<\/span><\/p>\n

Pradhan Mantri Awas Yojana (PMAY) Subsidy Schemes<\/b><\/h2>\n\n\n\n\n\n\n\n\n
PMAY Subsidy – Pradhan Mantri Awas Yojna Schemes<\/b><\/td>\nDetails<\/b><\/td>\n<\/tr>\n
Scheme Name<\/span><\/td>\nPradhan Mantri Awas Yojana (PMAY)<\/span><\/td>\n<\/tr>\n
Started Year<\/span><\/td>\nJune 2015<\/span><\/td>\n<\/tr>\n
Extended Year<\/span><\/td>\nFYI 2025-26<\/span><\/td>\n<\/tr>\n
Benefits<\/span><\/td>\nSubsidy on Two-room pakka residence<\/span><\/td>\n<\/tr>\n
Last Date To Apply<\/span><\/td>\nYet to be Announced for PMAY Urban, March 2029 for PMAY-G (Gramin)<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

There are two Pradhan Mantri Awas Yojana subsidy (PMAY subsidy) for both urban and rural areas. They are –\u00a0<\/span><\/p>\n

PMAY-U (Urban) – A Complete Overview<\/b><\/h3>\n

PMAY-U 2.0, an update to PMAY-U, is designed to cater to housing needs for the homeless or people with kutcha houses in urban settlements. This home loan subsidy by government is ensured by more than \u20b910 lakh crore in funding, in which \u20b92.30 lakh crore comes from government subsidy. The objective is to provide more than 1 crore homes to permanently shelterless residents of urban India.\u00a0<\/span><\/p>\n

How PMAY-U (Urban) 2.0 is Different from PMAY Subsidy 1.0?<\/span><\/h3>\n

Discontinued in 2022, PMAY-U (Urban) 1.0 is the foundation stone for PMAY-U (Urban) 2.0, as they both share a similar vision – \u201chousing for all\u201d. The newer version, i.e., PMAY-U (Urban) 2.0, ensures that the compensation and home loan subsidy scheme is fair and not misused. Some of the key differences between PMAY-U (Urban) 2.0 and PMAY-U (Urban) are as follows:<\/span><\/p>\n

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  1. The newer version increases the home loan subsidy assistance to \u20b92.5 lakh for beneficiary-led construction (BLC) and Affordable Housing in partnership (AHP) projects. In the earlier version of the same program, the maximum financial assistance was \u20b91.5 lakh.<\/span><\/li>\n
  2. PMAY-U (Urban) 2.0 aims to provide affordable house ownership as well as affordable rental housing to people from economic backgrounds. The older PMAY-U focused on providing affordable housing schemes and rebates to people living in slums.<\/span><\/li>\n
  3. PMAY-U (Urban) 1.0 provided a wide range of PMAY subsidies for the medium-income group and capped the maximum annual income to \u20b912 lakh. In newer programs, the medium-income group is only eligible for PMAY subsidy for MIG flats if their net income is lower than \u20b99 lakh annually.\u00a0<\/span><\/li>\n
  4. The newer PMAY-U provides a subsidy on home loan through the Interest Subsidy Scheme (ISS), whereas the older version used the Credit Linked Subsidy Scheme (CLSS). The difference is that in the older version, the home loan subsidy by the government was a lump sum amount, whereas through ISS, PMAY subsidy provides a home loan subsidy on the principal amount. It means that your home loan EMI is less since there is a subsidy of 4% of the principal loan amount up to \u20b98 lac.<\/span><\/li>\n<\/ol>\n

    PMAY-G (Gramin) – A Complete Overview<\/b><\/h3>\n

    PMAY-G (Gramin), an acronym for Pradhan Mantri Aawaas Yojna, is a rural affordable housing scheme by the Indian government to ensure housing for all. This scheme aims to provide a pucca house to those who can\u2019t afford to build their own house. Through this scheme, the government provides a direct benefit transfer (DBT) of up to \u20b91.20 lac for plain areas and \u20b91.30 lac for hilly areas or areas where construction is slightly harder.<\/span><\/p>\n

    Apart from that, one can also avail a home loan subsidy by government by taking a home loan of up to \u20b970,000 at a lower interest rate. Unlike PMAY-U, there are no changes made in PMAY-G (Gramin), and the government continues to pay the home loan subsidy through the same scheme.\u00a0<\/span><\/p>\n\n\n\n\n\n\n\n
    Component<\/b><\/td>\nDescription<\/b><\/td>\nTarget Group<\/b><\/td>\nKey Documents Required<\/b><\/td>\n<\/tr>\n
    PMAY-G Scheme (Gramin)<\/span><\/td>\nAims to provide permanent homes and subsidies on loans to beneficiaries.<\/span><\/td>\nPeople living without a home or in kutcha ghar.<\/span><\/td>\nAadhaar card, Job card, Income certificate<\/span><\/td>\n<\/tr>\n
    PMAY-U Scheme (Urban) 2.0<\/span><\/td>\nProvides housing via interest subsidies in urban areas.<\/span><\/td>\nHomeless people or people living in kutcha ghar – especially the economically weaker sections<\/span><\/td>\nAadhaar card, Income certificate, Voter ID<\/span><\/td>\n<\/tr>\n
    CLSS<\/span><\/td>\nSubsidies on home loan interest rates for lower-income groups. Discontinued for PMAY-U 2.0<\/span><\/td>\nEconomically Weaker Section (EWS), Low and Middle Income Groups<\/span><\/td>\nAadhaar card, Income certificate, Voter ID<\/span><\/td>\n<\/tr>\n
    ARHCs<\/span><\/td>\nProvides subsidised rental housing for the urban poor and migrants in cities and towns.<\/span><\/td>\nUrban poor, migrants<\/span><\/td>\nAadhaar card, Income certificate, Ration card<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

    Factors that Might Affect PMAY Subsidy<\/b><\/h2>\n

    Several factors may impact the PMAY subsidy status on a home loan for a borrower, and some of them are listed below:<\/span><\/p>\n

      \n
    1. Principal Loan Amount: The higher the principal loan amount, the higher will be the subsidy amount under the PMAY scheme. Under the PMAY scheme, the loan amount eligible for subsidy is capped to ensure that the subsidy benefits reach those who need them the most. The Pradhan Mantri Awas Yojana (PMAY) is a housing scheme for the middle class that includes a stamp duty value of up to Rs 45 lakh. The Credit Linked Subsidy Scheme (CLSS) is part of the PMAY (Urban) Mission and provides an interest subsidy that is directly credited to the beneficiary’s loan account.<\/span><\/li>\n
    2. Annual Income: The lower the annual household income, the higher the PMAY subsidy amount, and vice versa.<\/span><\/li>\n
    3. Applicant\u2019s Creditworthiness: The CIBIL score or the general creditworthiness of the borrowers is another factor that can determine the subsidy on the PMAY scheme home loan.<\/span><\/li>\n
    4. First-Time Homebuyer: Individuals who are purchasing a home for the first time are given priority under the PMAY scheme and are most likely to get higher subsidy benefits.<\/span><\/li>\n
    5. Home Loan Tenure: The higher the home loan tenure, the higher the subsidy amount will be in a housing loan subsidy calculator.<\/span><\/li>\n<\/ol>\n

      Home Loan Subsidy Eligibility Criteria<\/b><\/h2>\n

      In the table given below, you can see the Home Loan Subsidy Eligibility Criteria for various categories based on annual household income.<\/span><\/p>\n\n\n\n\n\n\n\n
      Beneficiary<\/b><\/td>\nAnnual Income<\/b><\/td>\n<\/tr>\n
      Middle Income Group II (MIG II)<\/span><\/td>\n\u20b912 lakh to \u20b918 lakh<\/span><\/td>\n<\/tr>\n
      Middle Income Group I (MIG I)<\/span><\/td>\n\u20b96 lakh to \u20b912 lakh<\/span><\/td>\n<\/tr>\n
      Lower Income Group (LIG)<\/span><\/td>\n\u20b93 lakh to \u20b96 lakh<\/span><\/td>\n<\/tr>\n
      Economically Weaker Section (EWS)<\/span><\/td>\nUp to \u20b93 lakh<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

      Who Can Apply for a Home Loan Subsidy Under PMAY?<\/b><\/h2>\n

      Furthermore, there are several other eligibility criteria you need to meet to ensure that your PMAY subsidy application is approved and the home loan subsidy by government is disbursed.\u00a0<\/span><\/p>\n

        \n
      1. A borrower\/potential beneficiary should belong to the ST, SC, and OBC categories can also avail PMAY subsidy, given they have all the appropriate documents.\u00a0<\/span><\/li>\n
      2. To get home loan subsidy by the government, the house value must not exceed \u20b935 lakh; the maximum loan amount against which you can get home loan subsidy is \u20b925 lakh.<\/span><\/li>\n
      3. One shouldn\u2019t have a pucca house in any part of India. Additionally, their spouse or other family member shouldn\u2019t own a permanent shelter anywhere across the country.\u00a0<\/span><\/li>\n
      4. Only new beneficiaries can avail this home loan subsidy by government; those who have availed this subsidy on a home loan in past aren\u2019t eligible under the scheme.\u00a0<\/span><\/li>\n<\/ol>\n

        Application Process for Home Loan Subsidy<\/span><\/h3>\n
          \n
        1. Visit the official website of PMAY –\u00a0 <\/span>pmaymis.gov.in<\/span><\/a> or <\/span>pmayg.nic.in<\/span><\/a>. There are two separate websites for the rural and urban program. Choose what applies to your region and visit.\u00a0<\/span><\/li>\n
        2. Choose category\/scheme. Select Category.\u00a0<\/span><\/li>\n
        3. Enter the required details. Provide all the information and cross-check it for accuracy.\u00a0<\/span><\/li>\n
        4. Select Category and Scheme: Choose the applicable category<\/span><\/li>\n
        5. Enter Details: Provide all necessary personal details and cross check it for accuracy.<\/span><\/li>\n
        6. Submit Documents: Upload all the required documents mentioned in the section below.\u00a0<\/span><\/li>\n<\/ol>\n

          How to Apply for a Home Loan Subsidy<\/span><\/h2>\n

          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.<\/span><\/p>\n

            \n
          1. Website for Urban Applicants: <\/span>PMAY Urban Official Site<\/span><\/a><\/li>\n
          2. Website for Rural Applicants: <\/span>PMAY Gramin Official Site<\/span><\/a><\/li>\n<\/ol>\n

            Documents Needed & Subsidy Disbursement Timeline<\/b><\/h2>\n

            Typical requirements include:<\/span><\/p>\n

              \n
            1. Identity and address proofs (Aadhaar, PAN, etc.)<\/span><\/li>\n
            2. Income proof (salary slips, tax returns)<\/span><\/li>\n
            3. Property documents (sale agreement, title documents)<\/span><\/li>\n
            4. Loan sanction letter & declaration of no prior pucca house ownership<\/span><\/li>\n<\/ol>\n

              Home loan subsidy by government is sanctioned after you complete all the stages – property verification, claim submission, approval, and transfer. The home loan subsidy by government is initiated in 3 to 6 months from the loan disbursement date.\u00a0<\/span><\/p>\n

              Why Opt for a Home Loan Subsidy under PMAY?<\/b><\/h2>\n

              You must opt for home loan subsidy by government, i.e, PMAY subsidy, if you come from lower- to middle-income families. This subsidy on home loan may give a lot of benefits in terms of financial aid if you are living in a kacha ghar.<\/span><\/p>\n

                \n
              1. It reduces the overall interest burden on the borrower, which can make a significant difference in the total amount repaid over the loan\u2019s tenure.<\/span><\/li>\n
              2. The reduction in EMI can free up monthly income for other household and personal expenses.<\/span><\/li>\n
              3. It facilitates the acquisition of property that may otherwise be financially out of reach, thereby improving the living standards of the family.<\/span><\/li>\n<\/ol>\n

                What is the Credit-Linked Subsidy Scheme (CLSS)?<\/b><\/h2>\n

                PMAY scheme offers a subsidy on home loan on the basis of CLSS (Credit-Linked Subsidy Scheme). The government pays home loan subsidy on the interest rate directly to the beneficiary account. It means that you get the direct rebate on the principal amount and have to pay EMIs on the basis of the reduced amount. To ensure the fair disbursal of home loan subsidy under CLSS, the subsidy is only given to those who are building a house or buying a new one. The scheme doesn\u2019t give any compensation or rebate to buy a plot.\u00a0<\/span><\/p>\n

                Note: The CLSS is discontinued by the government for PMAY U 2.0 subsidy in 2024.\u00a0<\/span><\/p>\n

                Pradhan Mantri Awas Yojana \u2013 Credit Linked Subsidy Scheme (PMAY-CLSS Scheme) Key Details<\/span><\/h2>\n

                The PMAY-CLSS offers interest subsidies on home loans based on income categories, helping reduce EMIs and make housing more affordable. Here\u2019s a quick overview of the benefits:<\/span><\/p>\n\n\n\n\n\n\n\n\n
                I<\/span>ncome Category<\/b><\/td>\nSubsidy Details<\/b><\/td>\n<\/tr>\n
                EWS\u00a0<\/span><\/td>\nAnnual income less than \u20b93 lakh; interest subsidy up to 6.5% on a loan up to \u20b96 lakh.<\/span><\/td>\n<\/tr>\n
                LIG\u00a0<\/span><\/td>\nAnnual income \u20b93-6 lakh; interest subsidy up to 6.5% on a loan up to \u20b96 lakh.<\/span><\/td>\n<\/tr>\n
                MIG I\u00a0<\/span><\/td>\nAnnual income \u20b96-12 lakh; interest subsidy 4% on loan up to \u20b99 lakh<\/span><\/td>\n<\/tr>\n
                MIG II\u00a0<\/span><\/td>\nAnnual income \u20b912-18 lakh; interest subsidy 3% on loan up to \u20b912 lakh<\/span><\/td>\n<\/tr>\n
                Subsidy Lifespan<\/span><\/td>\nUp to 20 years or the loan tenure, whichever is lower; credited upfront to reduce EMI and adequate loan amount.<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

                The rest is 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 \u20b92.30 lakh.<\/span><\/p>\n

                MIG I<\/b><\/h3>\n

                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 \u20b99 lakh. The maximum subsidy amount one can get under this category is \u20b92.35 lakh. The maximum loan tenure that will be taken into consideration for the calculation of the loan subsidy is 20 years.<\/span><\/p>\n

                EWS\/LIG<\/b><\/h3>\n

                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 \u20b96 lakh. The maximum subsidy loan amount one gets under this category is \u20b92.67 lakh subsidy on a home loan. The maximum loan term for which the <\/span>house loan interest rate<\/span><\/a> subsidy is being offered is 20 years.<\/span><\/p>\n

                How to Use Pradhan Mantri Awas Yojana (PMAY) Subsidy Calculator<\/span><\/h2>\n

                To use a Pradhan Mantri Awas Yojana (PMAY) subsidy calculator, you can follow these general steps:<\/span><\/p>\n\n\n\n\n\n\n\n\n\n\n
                Step<\/b><\/td>\nAction<\/b><\/td>\n<\/tr>\n
                Find a Calculator Online<\/span><\/td>\nAccess a PMAY subsidy calculator like the one provided by BASIC Home Loan.<\/span><\/td>\n<\/tr>\n
                Enter Annual Family Income<\/span><\/td>\nInput your household\u2019s total annual income.<\/span><\/td>\n<\/tr>\n
                Enter Loan Amount<\/span><\/td>\nProvide the home loan amount you wish to take.\u00a0<\/span><\/td>\n<\/tr>\n
                Enter Loan Tenure<\/span><\/td>\nSpecify the duration over which you plan to repay the loan.<\/span><\/td>\n<\/tr>\n
                Enter Interest Rate<\/span><\/td>\nInput the expected interest rate on your home loan.<\/span><\/td>\n<\/tr>\n
                Submit Details<\/span><\/td>\nSubmit the form after entering all required information<\/span><\/td>\n<\/tr>\n
                View Results<\/span><\/td>\nThe calculator will display your eligible PMAY subsidy, reduced effective interest rate, and estimated EMI savings.<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

                How Do I Check the Status of the PMAY Subsidy?<\/span><\/h2>\n

                You can check your PMAY subsidy using the PMAY subsidy calculation in 3 ways.\u00a0<\/span><\/p>\n

                  \n
                1. Online Using Aadhaar or Application ID<\/span><\/li>\n<\/ol>\n