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Banking,Financial Services and Insurance; Housing & Shelter; Social welfare & Empowerment

Financial Assistance as Interest Subsidy on Home Loan

The scheme aims to provide 50% reimbursement of interest on home loans up to ₹1,00,000 for eligible war widows, war bereaved families, war disabled personnel, and attributable peacetime casualties.

Authority

Central

Region

Central Government

Status

Verified 2026

Updated

March 2026

What you get

- Interest Subsidy Amount: 50% of the interest charged on the home loan.- Loan Limit for Subsidy: Up to ₹1,00,000 (even if the loan amount is higher).- Duration: Maximum of 5 years or until loan repayment is completed, whichever is earlier.- Applicable Loan Sources: Banks, Government/Public Sector undertakings, Life Insurance Corporation (LIC), General Insurance Corporation (GIC), and Housing and Urban Development Corporation (HUDCO).

Who can apply

The applicant must be a war widow, war bereaved family member, war disabled personnel, or attributable peacetime casualty (all ranks).; The applicant must have taken a home loan from a bank, government/public sector undertaking, LIC, GIC, or HUDCO.; The loan amount considered for subsidy must not exceed ₹1,00,000, regardless of the actual loan amount.

Required Paperwork

  • Aadhaar Card
  • PAN Card
  • Income Certificate
  • Residence Proof (Domicile)

Common Questions

Is there any restriction on changing repayment terms?

Yes, the repayment schedule must remain unchanged.

Can I claim subsidy for a home renovation loan?

No, it is only for home construction loans.

Who verifies my application?

The Zila Sainik Board verifies before forwarding to KSB.

How is the subsidy amount transferred?

Directly to your bank account via ECS.

Can I apply if I took a loan from a private bank?

No, only loans from approved banks, government/public sector undertakings, LIC, GIC, and HUDCO are eligible.

How often is the subsidy paid?

Every six months (half-yearly).

What is the maximum loan amount eligible for subsidy?

₹1,00,000, even if the loan taken is higher.

What percentage of interest is reimbursed?

50% of the interest charged.

Who can apply for this scheme?

War widows, war bereaved families, war disabled personnel, and attributable peacetime casualties (all ranks).

How long is the subsidy available?

Up to 5 years or until loan repayment is completed, whichever is earlier.