With the objective of ensuring “Housing for All,” the Central Government is implementing the Pradhan Mantri Awas Yojana (PMAY), offering interest subsidies on home loans for middle- and low-income groups. Eligible beneficiaries can obtain a home loan interest subsidy of up to ₹2.67 lakh, credited directly to their loan account, thereby reducing both the total loan burden and monthly EMIs.
PMAY is implemented through two verticals—PMAY (Urban) and PMAY (Gramin). Under the Credit Linked Subsidy Scheme (CLSS) for urban housing, the government provides interest subsidies on home loans taken from banks or housing finance companies. The subsidy applies only up to a specified loan limit and is calculated upfront and credited in one instalment.
To qualify, the maximum property value must not exceed ₹35 lakh. Applicants must be first-time homebuyers, should not own a pucca house anywhere in India, and must fall within prescribed income limits. In certain cases, female ownership or co-ownership is mandatory. Factors such as income, credit score, existing liabilities, repayment capacity, and age are considered.
More details are available on the official website: pmay-urban.gov.in, or through loan-issuing banks.