Home loan subsidies can help reduce our home loan burden. Applying for a home loan subsidy requires certain eligibility criteria to be met. The eligibility criteria may differ from scheme to scheme.
The most popular home loan subsidy scheme in India is the Pradhan Mantri Awas Yojana (PMAY) scheme, which is currently closed to applicants but may be extended. To learn more about the resuming of the PMAY scheme, you can contact a local Common Service Centre.
In the meantime, here are other ways in which you can try applying for a home loan subsidy in India.
Banks and Home Loan Subsidies
It is important to note that banks and other financial institutions do not offer separate home loan subsidies. Most often, these institutions extend partnerships with the government’s primary home loan subsidy program and offer home loans to applicants who qualify under these subsidy schemes. In short, they act as mediators between the scheme offerer and the eligible candidate to disburse the subsidized loan amount.
Some prominent banks and financial institutions that offer subsidized home loans under the PMAY scheme include the following:
Public Sector Banks (PSBs):
- State Bank of India (SBI)
- Bank of Baroda
- ICICI Bank
- HDFC Bank
- Axis Bank
- Bank of Maharashtra
Private Sector Banks:
- ICICI Bank
- HDFC Bank
- Axis Bank
- Kotak Mahindra Bank
- Yes Bank
- IndusInd Bank
Housing Finance Companies (HFCs):
- LIC Housing Finance
- HDFC Ltd.
- Dewan Housing Finance Corporation (DHFL)
- Tata Capital Housing Finance
At times, these banking and financial institutions may also require certain eligibility criteria to be met to qualify for the loan, such as having a monthly income above Rs. 25,000, working in a listed company, and so on.
So, it is essential that you inquire at your preferred financial institution about the eligibility factors required to qualify for a home loan subsidy.
State-Specific Home Loan Subsidy Schemes
The Indian states do not offer separate home loan subsidy schemes besides the central government’s Pradhan Mantri Awas Yojana (PMAY) with the Credit Linked Subsidy Scheme (CLSS).
However, certain state governments offer other initiatives to aid home loan schemes like-
- The Tamil Nadu government’s Affordable Housing in Partnership (AHP) program,
- The government of Kerala’s Grihasree Housing Scheme,
- MN Laksham Veedu Punarnirmana Padhathi, and so on.
To learn about the details of the home loan schemes and other supporting initiatives undertaken by the state governments, visit their official housing or urban development department website or look up news articles and press releases on it.
Home Loan Subsidy Schemes for Government Employees
Central and state government employees can also enjoy home loan subsidy schemes under the PMAY initiative if they meet all the eligibility criteria. However, some government ministries or departments can offer housing schemes for employees like:
- Subsidized land allotment
- Housing projects with benefits
- Collaborations with banks for preferential interest rates
If you require information regarding the housing loan schemes offered by your department, contact the relevant human resources or administrative department.
The PMAY CLSS Scheme
The Pradhan Mantri Awas Yojana (PMAY) scheme is a landmark housing scheme that has extended home loans and loan subsidies to people of different class strata across the country.
The PMAY scheme offers home loans and subsidies under four verticals:
- Beneficiary Led Construction/Enhancement (BLC): For building a new home on one’s land or improving an existing home.
- Affordable Housing in Partnership (AHP): The government collaborates with private developers to construct affordable housing units.
- In-situ Slum Redevelopment (ISSR): Redevelop existing slums with good housing infrastructure.
- Credit Linked Subsidy Scheme (CLSS): This vertical provides subsidies on home loan interests for eligible candidates through participating banks.
The Credit Linked Subsidy Scheme (CLSS) is a home loan subsidy offering scheme. It applies to candidates from the Economically Weaker Section (EWS), Lower Income Group (LIG), and Middle Income Group (MIG).
You can apply for the PMAY CLSS home loan subsidy program through the official website https://pmaymis.gov.in/ if the portal resumes accepting applications. You can also visit the nearby Common Services Centre (CSC) and apply for the PMAY CLSS scheme.
Conclusion
Applying for home loan subsidies can become easier if the candidate meets the required eligibility criteria. Therefore, look into the eligibility criteria required by the financial institution you are approaching to avail of a home loan.
Also, before approaching financial institutions, look for a scheme like the PMAY CLSS that could offer you a home loan subsidy.
If you are unable to access the PMAY CLSS scheme, check whether the organization you work for or your state government has a similar home loan subsidy scheme. You can also inquire about home loan subsidy schemes with different banks and financial institutions.