Get the Right Value of Money by Housing for All Scheme


Summary: You can avail a home loan under the Housing for All or the Pradhan Mantri Awas Yojana and get interest subsidy on it and afford it without hassles. Read on and know more!

Pradhan Mantri Awas Yojana is an extensive scheme launched by the Government of India to help people avail a home loan and get interest subsidy on it. The Central Government also plans to build many affordable homes for Economically Weaker Section, Middle Income Group, and Lower Income Group. They plan to give everyone a home by 2022.   

Buying, or building a home has to be one of the major decisions of life that you will take ever in your life. It’s good if you are financially sound to manage the cost of your home. However, most of the people willing to buy or build a home of their home don’t have enough money as it needs a lot of money.

That’s where the concept of home loans came to help people fund the cost of their homes. People could borrow huge amount as housing loan and repay the money in the form of the EMIs over years.

However, since it also consists of paying some home loan interest rate along with the interest payment, it left people with higher payments. What’s more, home loans run for years and that’s where it is tough for some people to manage the EMIs as it affects it for a long time. Any respite in the subsidy of the home loan would help you save big, right?

The Pradhan Mantri Awas Yojana or Housing for All scheme was launched on 17th June 2015 to offer Credit Linked Subsidy Scheme (CLSS).

For Middle Income Group or the MIG, they will avail the interest subsidy on home loans for either possession or the construction of houses which will also include repurchases.

For Economically Weaker Section (EWS) and Lower Income Group (LIG), they can make the most of the CLSS of the Pradhan Mantri Awas Yojana for home loans on possession and building of homes.

Income Category

Annual Income

Loan Amount

Interest Subsidy

Carpet Area

Maximum Subsidy

Woman Ownership


Up to Rs.6 lakhs

Rs.6 lakhs


60 sq.m

Rs.2.67 lakhs



Rs.6 lakhs – Rs.12 lakhs

Rs.9 lakhs


160 sq.m

Rs.2.35 lakhs

Not Mandatory


Rs.12 lakhs – Rs.18 lakhs

Rs.12 lakhs


200 sq.m

Rs.2.30 lakhs

Not Mandatory

How to avail the subsidy under the Housing for All Scheme

  • The loan application

The first step towards availing the interest subsidy under the PMAY scheme is by applying for a home loan from central agencies where you will get lower rates. These are the National Housing Bank (NHB) and Housing and Urban Development Corporation (HUDCO). They club with lending partners and in turn, help you availing the interest subsidy on the loan.

  • The approval of the loan

Once you have submitted the loan application, the lending service providers will scrutinize your application and forward it to HUDCO or NHB for the final approval.

  • The credit of the subsidy

After your home loan application gets approved by the National Housing Bank (NHB) and Housing and Urban Development Corporation (HUDCO), your desired home loan amount will then be credited with the amount of the interest subsidy. The immediate benefit of availing the Credit Linked Subsidy Scheme (CLSS) will be getting your monthly home loan EMIs to reduce along with the lower interest payments.

  • The Bottom Line

The Pradhan Mantri Awas Yojana or the Housing for All is indeed a beneficial scheme to avail discounts on home loan interest rate. Like this, you can pay lower home loan rates and pay lower EMIs, and save huge money. At the same time, your dream of having your own home will get fulfilled.

Author Bio:

Tarun is a blogger and he passionate about writing on different topics like Insurance, Tech, Automotive, Finance and many others. He has been creating SEO friendly content for more than 5 years. For more info you can visit his blog at Wisdom Ancient.

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