Home Loan for Disabled Individuals: PMAY Benefits, Eligibility & Rates (2026)

Owning a home is a dream for many. Finding the right financing option to achieve this milestone can be difficult, especially for people with disabilities. This is where a home loan for disabled becomes a suitable solution to ensure specialised assistance. Programs like the Pradhan Mantri Awas Yojana (PMAY) and such targeted financial assistance in India are establishing routes to affordable housing and making it possible for applicants with disabilities to obtain home loans.

In this article, we are going to talk about PMAY benefits, eligibility, rates, and how it provides financial assistance to people with disabilities. 

Government-Backed Support: PMAY Home Loan for Disabled Persons

The Pradhan Mantri Awas Yojana (PMAY), which provides interest subsidies on a home loan for disabled person in order to make affordable housing available to qualified residents, continues to be a flagship government program. Through the Credit-Linked Subsidy Scheme (CLSS) component of PMAY-Urban 2.0, eligible beneficiaries receive interest subsidies that are directly applied to their house loans, thereby lowering EMIs and increasing housing affordability. This benefit also includes people with disabilities, with priority considerations in distribution and accessible design elements.

Note: LTV depends on the RBI guidelines and typically ranges up to 90%. 

Documents Required for PMAY Home Loan for Disabled Applicants

General Documents Required for All Applicants:

• Duly filled home loan application form
• Three recent passport-size photographs
• Identity proof: Aadhaar Card or PAN Card
• Address proof (any one): recent telephone, electricity, water, or piped gas bill, passport, driving licence, Aadhaar Card
• Employer-issued identity card
• Self-declaration submitted under the Interest Subsidy Scheme (ISS)

Property-Related Documents:

• Registered sale deed or stamped agreement to sell, along with title-related documents
• Occupancy certificate
• Share certificate (applicable for properties in Maharashtra)
• Approved layout or building plan copy (xerox/blueprint), conveyance deed, and development agreement (if applicable)
• Latest property tax receipt, maintenance bill, and electricity bill

Income Documents for Salaried Applicants:

• Salary slips or salary certificates for the previous three months
• Form 16 or Income Tax Returns for the last two financial years (with IT Department acknowledgement)
• Bank statements for the past six months

Income Documents for Self-Employed / Non-Salaried Applicants:

• Proof of business address
• Income Tax Returns for the last three financial years
• Balance sheet and Profit & Loss statements for the previous three years
• Business licence details or equivalent registration documents
• TDS certificate (Form 16A), if applicable

Key Benefits of PMAY Home Loan for Disabled Applicants

When considering house loans for people on disability, the following benefits of PMAY can make borrowing more convenient.

1. Interest Subsidy

Interest rate subsidies on qualifying house loans are available to beneficiaries across various income slabs, with rates ranging from 6.50% for the EWS/LIG category to 4% for the MIG-I category and 3% for the MIG-II category.

2. Priority Allocation

To improve mobility and convenience, ground/accessible floor apartments are frequently given priority allocation.

3. Accessible Standards

More and more residences built under PMAY are being planned with disability-friendly features like ramps, wider doors, and accessible restrooms.

4. Subsidy Amount

The maximum interest subsidy benefit under the revised CLSS in 2026 might be up to ₹1.80 lakh, which will be deposited into the eligible home loan for disabled accounts.

5. Fast Track Processing

Fast-track processing ensures quicker review and approval of home loan for disabled applications for disabled beneficiaries. Reduced documentation delays and prioritising verification helps with faster disbursal, making the home-buying process more accessible and less stressful.

Eligibility Criteria for PMAY Subsidy for Disabled Persons

To qualify for PMAY benefits while securing a home loan for disabled, there are group-specific eligibility criteria in addition to common requirements. Make sure you meet the criteria, and if needed, learn how to increase your home loan eligibility.

1. Common Eligibility Criteria

• Applicants must be citizens of India.
• Applicants must not own a house.
• Applicants must also not have received any of the benefits under any other State or Central Government housing scheme.
• Applicants must show proof of disability (of 40% or more)

2. Economically Weaker Section (EWS)

• Annual Household Income: up to ₹3 lakh
• Subsidy Applicable on Loan Amount: up to ₹6 lakh
• Interest Subsidy Rate: 6.50%
• Maximum Carpet Area*: 60 sq. metres

3. Lower Income Group (LIG)

• Annual Household Income: ₹3 lakh to ₹6 lakh
• Subsidy Applicable on Loan Amount: up to ₹6 lakh
• Interest Subsidy Rate: 6.50%
• Maximum Carpet Area*: 60 sq. metres

Note: Applicants under EWS and LIG can avail a maximum interest subsidy of up to ₹1.80 lakh (PMAY-U 2.0).

4. Medium Income Group I (MIG I)

• Annual Household Income: ₹6 lakh to ₹12 lakh
• Subsidy Applicable on Loan Amount: up to ₹9 lakh
• Interest Subsidy Rate: 4%
• Maximum Carpet Area*: 160 sq. metres

5. Medium Income Group II (MIG II)

• Annual Household Income: ₹12 lakh to ₹18 lakh
• Subsidy Applicable on Loan Amount: up to ₹12 lakh
• Interest Subsidy Rate: 3%
• Maximum Carpet Area*: 200 sq. metres

Note: Applicants from MIG I and MIG II can receive an interest subsidy of up to ₹2.35 lakh.

*Carpet area refers to the net usable floor area within the walls, excluding wall thickness and shared spaces such as staircases and lobbies.

Home Loan Interest Rates for Disabled Applicants (2026)

When securing a home loan for disabled person, interest rates depend on both the lender’s terms and any subsidies received.

Here are the top home loan for physically handicapped interest rates:

PMAY-Subsidy Influence on the Home Loan for Disabled

The benefit of PMAY comes through an upfront interest subsidy. It is credited directly to the loan account. This subsidy reduces the loan principal, even though the original interest rate remains unchanged.

For example, if a borrower takes a home loan from HDFC Bank at 8.00% p.a., the rate stays the same after PMAY approval. However, the subsidy amount is deducted from the loan balance at the start, lowering the outstanding principal. As a result, interest is calculated on a reduced amount, and lower EMIs or reduced total interest over the loan tenure.

PMAY improves affordability not by changing interest rates, but by reducing the loan burden on which interest is charged.

Home Loan for Disabled - Other Financial Support

Apart from PMAY, there are specific financial schemes available to make home loan for handicapped more accessible and affordable:

• NHFDC Concessional Loans: Based on local state plans, the National Handicapped Finance and Development Corporation provides concessional home loan for disabled rates for business endeavors and, in certain cases, house-related financing.
• Special and State-Level Programs: A number of state welfare boards, such as the MerryHome Scheme in Kerala, offer customised subsidised home loan for disabled interest rates for people with disabilities.

Practical Steps to Secure Your Home Loan for Disabled Persons

Here’s a step-by-step approach for someone planning to secure a home loan for disabled with PMAY benefits:

• Get a Disability Certificate: To qualify for priority or concessional consideration where applicable, obtain your disability certificate from the appropriate medical board.
• Check PMAY Eligibility: Use authorised PMAY websites to confirm the income category restrictions and documentation necessary for CLSS.
• Compare Loan Options: Compare the rates and features on My Mudra.
• Apply: Submit your loan application and make sure to also submit the PMAY subsidy application at the same time.
• Use Subsidy: After the home loan for disabled acceptance, your interest subsidy under PMAY will be applied to your loan account, making it easier to pay back.
• Disbursement Tracking: Monitor loan status to ensure seamless processing.

How My Mudra Helps Disabled Home Loan Applicants

My Mudra brings a wide network of banks providing home loans under one platform and makes the entire process of applying for a loan and obtaining the funds easier. 

• Comparison Made Simple: Find home loan offers and the best interest rates from the top banks and compare your options with ease.
• Streamlined Procedure: My Mudra may lessen the administrative load often experienced by individuals applying for a home loan for disabled person by providing online applications, easy paperwork, and quicker approval times.
• Transparency: We maintain absolute transparency from start to end to ensure no unexpected surprises down the line.
• Reliable Customer Support: Skilled experts are here to guide you through each step of the loan application, making it easy and stress-free for those looking for home financing for disabled.

Final Thoughts

Due to progressive government programs and greater financial inclusion, obtaining a home loan for disabled person in 2026 has become more convenient. By providing interest subsidies and priority assistance, initiatives like PMAY have made home loans much easier and more affordable. 

My Mudra adds to the convenience by streamlining applications, increasing transparency, and minimising paperwork.

Also Read:
- Home Loan Balance Transfer Process in India
- Best Home Loan Insurance Policy in India