How to get Home Loan Interest Subsidy upto Rs 2.67 Lakhs under PMAY Scheme?

How to get Home Loan Interest Subsidy of Rs 2.67 Lakhs under PMAY SchemeHow to get Home Loan Interest Subsidy upto Rs 2.67 Lakhs under PMAY Scheme?

Who does not dream to have a beautiful home? However, the real estate prices has been sky rocketing for the past few years. Due to demonetization, real estate prices in some of the cities are stagnant. With Govt. of India initiaitive about “home for all by 2022” and home loan interest subsidy of Rs 2.67 Lakhs, middle-class people can take affordable home loan and buy their dream home. Which are the banks offering home loan interest subsidy under Pradhan Mantri Yojana Scheme? What are the features of Home Loan Interest Subsidy of Rs 2.67 Lakhs given under this scheme? How to avail Home Loan Interest Subsidy under PMAY Scheme?

Also Read: Ways to get Income Tax Benefits on Home Loans in India

Overview about Home Loans Interest Subsidy upto Rs 2.67 Lakh

Under the scheme, Pradhan Mantri Awas Yojana (PMAY) a subsidy is provided against the home loan to the beneficiary. This means that the subsidy amount is credited to the loan account of the beneficiary. This reduces the outstanding principal amount of the loan. The home loan borrower can lower the EMIs or repay the loan at faster pace with original EMI. The subsidy is obtained under Revised Credit Linked Subsidy Scheme (also written as Revised CLSS). For the scheme, the beneficiaries have been divided into two categories-

Low Income Group (LIG) – people with annual income upto Rs. 3 lakh.

Economically Weaker Section (EWS) – people with annual income between Rs. 3 lakh to Rs. 6 lakh.

MIG – The CLSS-MIG will be implemented initially for a period of one year i.e. from 01.01.2017 up to 31.12.2017.     

What is Pradhan Mantri Awas Yojana Scheme?

Inspired by the slogan “housing for all”, Pradhan Mantri Awas Yojana will be providing affordable houses to weaker section of the society. The scheme was launched on 25th June 2015 with an estimated target of constructing 2 crore affordable houses till 2022. 

Which banks are offering Interest Subsidy under PMAY?

The primary lending institutions which include public and private sector banks, non-banking housing finance companies, regional and co-operative banks (a total of 201 banks) have signed with the Central Nodal Agencies to provide housing loans to beneficiaries.       

How to get Home Loan Interest Subsidy upto Rs 2.67 Lakh under PMAY Scheme?

The beneficiaries who are eligible for interest subsidy under the CLSS scheme have to apply to their lenders for availing the subsidy benefit. One can even apply online for this subsidy. The home loans sanctioned after January 1, 2017 are eligible for it. An application cost of Rs.25 will be charged by the applicant. Each application is thoroughly checked and reviewed and accepted only when the candidate satisfies all the terms and conditions attached to it.

What is the interest rate offered by for home loan under PMAY Scheme?

The interest rate offered under the Revised Credit Linked Subsidy Scheme is 6.5% per annum. The tenure of the loan is 20 years or actual tenure whichever is less.

Also Read: Best Mutual Funds which can help you to buy your dream home in medium

What is the home loan amount and Interest offered by under PMAY Scheme?

The home loan and interest rates are as follows:

1) EWS / LIG – Individuals who are earning upto Rs 6 Lakhs per annum are eligible. Loan amount eligible is Rs 6 Lakhs. Subsidy is 6.5% per annum for 20 years and subsidy interest amount upto Rs 2.67 Lakhs.

2) MIG-I – Individuals who are earning upto Rs 12 Lakhs per annum are eligible. Loan amount eligible is Rs 9 Lakhs. Subsidy is 4% per annum for 20 years and subsidy interest amount upto Rs 2.35 Lakhs.

3) MIG-II – Individuals who are earning between Rs 12 Lakhs and Rs 18 Lakhs  per annum are eligible. Loan amount eligible is Rs 12 Lakhs. Subsidy is 3% per annum for 20 years and subsidy interest amount upto Rs 2.3 Lakhs.

Currently, MIG-I and MIG-II interest subsidy is given for home loans approved during 1-Jan-2017 to 31-Dec-2017.However for EWS / LIG, the home loans approved upto 2022, the interest subsidy would be given.  

Who is eligible for Credit Linked Subsidy Scheme for Rs 2.67 Lakh from SBI?

There are certain eligibility criteria that the applicants need to meet in order to avail this scheme like:

1) The beneficiary family should not own a pucca house under his name or any member of the family (here family means husband, wife and unmarried children) in any part of India.

2) The ownership of the house should in the sole name of the female member of the household or joint ownership with her. However, this condition is not mandatory in case of existing plot or extension or renovation of existing kuccha house.

3) The carpet area of house under this scheme should be not more than 30 sq mts. for EWS beneficiary and 60 sq. mts. for LIG beneficiary.

4) The maximum term loan for which the subsidy is available is 20 years.

What is the scope of Home Loan under PMAY Credit Linked Subsidy Scheme?

4315 statutory towns and the concerned planning area will be covered under this scheme. It is expected that millions of people will be benefitted by it.

Also Read: How to choose a good home loan suitable to you?

Should you opt for Home Loan interest subsidy under PMAY Scheme?

This is an incredible initiative taken by the government of India to provide their own homes to the weaker segment of the society. If all the conditions are met, one should definitely avail this facility of home loan interest subsidy which can reduce your home loan burden. If you are in MIG-I and MIG-II or EWS/LIG and eligible to take home loan, you should definitely opt for this interest subsidy.

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How to get Home Loan Interest Subsidy upto Rs 2.67 Lakhs under PMAY Scheme

Suresh KP


  • Jm

    I and my daughter bought jointly home loan of 50 lacs from SBI in March 2017. But till date I have not received pmay of 2.67 lacs. From my bankers. We are jointly paying the emis as well and we both are Co owner s in everything from society maintenance, loan repayment, etc. Are we eligible separately for the same. Bank is not responding nor advising inspite of several requests, bank manager is interested only in selling mutual funds. I took some amount for repayment but he insisted to buy mutual fund. Otherwise not entertaining. Advise please.

  • Janardhana

    Hi I taken home loan in APEX bank Bangalore on may 2018 how can I get subsidy

  • kuldip kamlesh bhai patel

    dear sir,

    last September 2017 my home loan started. but still now i am not get 2.67 lakh subsidy, so i need help for where i need to check for that.

    kuldip patel


    Dear Suresh

    Is this applicable to existing HOME-LOANS as well?

    in my case. had availed a home laon in september 2013.


    Suraj Shetty


    • You should go thru the process before availing the loan. However, pls check with your bank in case you are eligible and by any chance your loan is falling in the category.

  • Nitin Ramapure

    I am planning to buymy first resale home with 67sq mtr area. I fall under MIG-I category. I will add wife as co-applicant. Does this deal will come under PMJYA?

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