Owning a home is a bucket list item for most families here in India, but the increasing cost of buying a home makes it almost impossible. But the Government of India has introduced numerous schemes in order to ease this burden and provide ease in homeownership. One such is the Pradhan Mantri Awas Yojana (PMAY), which provides for a ₹2.67 lakh subsidy on home loan, which eases the repayment burden. Here’s how you can avail this subsidy and how it works.
What is the ₹2.67 Lakh Subsidy Under PMAY?
PMAY subsidy falls under the Credit-Linked Subsidy Scheme (CLSS), which lets the eligible homebuyers get an interest subsidy on their home loan. You can save up to ₹2.67 lakh on the loan repayment depending on your income category. This benefit is directly credited to your loan account, which reduces the principal. Basically, if you take a loan of ₹15 lakh and get the subsidy, your repayment amount drops, making EMIs smaller and homeownership more affordable.
Who Can Apply for the ₹2.67 Lakh Subsidy on Home Loan?
To qualify for the subsidy, you need to meet the following requirements:
- First-time homebuyer: Your family should not own a house anywhere in India.
- Family: The “family” includes husband, wife, and unmarried children.
Income criteria:
- Economically Weaker Section (EWS) – annual household income up to ₹3 lakh
- Lower Income Group (LIG) – annual household income between ₹3–6 lakh
- Middle Income Group (MIG I) – income between ₹6–12 lakh
- Middle Income Group (MIG II) – income between ₹12–18 lakh
Every group is eligible for varying amounts of subsidies, but the highest benefit stands at ₹2.67 lakh. A key fact to remember here is that although PMAY is only available up to December 31, 2025, the ₹2.67 lakh home loan subsidy under CLSS is not available for fresh applications anymore. But under ISS (Interest Subsidy Scheme) of Pradhan Mantri Awas Yojana-Urban (PMAY-U) 2.0, you are eligible to receive a subsidy of ₹1.80 lakh.
Step-by-Step Process to Claim PMAY Subsidy
Here’s how to apply for the subsidy:
- Apply for your Home Loan
- Apply for a home loan at a bank or housing finance company that’s registered under the PMAY.
- Your vendor will go through your income documentation, Aadhar details, and any other criteria that need to be assessed before granting you eligibility.
- Fill the Subsidy Form
- The lender will guide you through the whole process and then you can complete the necessary forms for getting the subsidy.
- Government Agency Verification
- National Housing Bank (NHB) or Housing and Urban Development Corporation (HUDCO) will scrutinize and inform you whether your claim is sanctioned.
- Subsidy Credited to Your Home Loan Account
- In case of sanction of subsidy, it’ll be credited to your account directly, which will ease the financial burden of paying back your house loan.
Applying for home loan can be overwhelming, but financial Institutions like PNB Housing Finance can help you along the whole process to make it seem less daunting. Apart from the subsidy you can also explore other schemes to get the maximum benefits.
