Introduction to Home Loan Schemes for First-Time Buyers

In 2025, home loan schemes for first-time buyers offer affordable financing options to make homeownership accessible. Loanpao guides you through government-backed and bank-specific schemes to secure your dream home. Apply now to start your journey.

Types of Home Loan Schemes for First-Time Buyers

Scheme 1: Pradhan Mantri Awas Yojana (PMAY) - Urban

Offers subsidies up to ₹2.67 lakh for EWS/LIG/MIG, with loans up to ₹50 lakh at 6.5–8% p.a.

Scheme 2: SBI First Home Loan

Provides up to ₹75 lakh at 8.4–9.5% p.a. with low processing fees for first-time buyers.

Scheme 3: HDFC Reach Home Loan

Targets low-income buyers, offering up to ₹35 lakh at 9–10% p.a. with flexible repayment.

Scheme 4: Affordable Housing Loan

Finances homes up to ₹40 lakh at 7.5–9% p.a., with relaxed eligibility for urban buyers.

Scheme 5: Women Home Buyer Loan

Special rates for women, up to ₹60 lakh at 8–9.2% p.a., with incentives like lower EMIs.

Comparison of Home Loan Schemes

Key home loan schemes for first-time buyers in 2025:

Scheme Loan Amount Interest Rate Tenure Key Feature
PMAY - Urban Up to ₹50 lakh 6.5–8% p.a. Up to 20 years Subsidy up to ₹2.67 lakh
SBI First Home Loan Up to ₹75 lakh 8.4–9.5% p.a. Up to 30 years Low processing fees
HDFC Reach Home Loan Up to ₹35 lakh 9–10% p.a. Up to 20 years Low-income focus
Affordable Housing Loan Up to ₹40 lakh 7.5–9% p.a. Up to 25 years Relaxed eligibility
Women Home Buyer Loan Up to ₹60 lakh 8–9.2% p.a. Up to 25 years Special rates for women

Note: Rates, subsidies, and eligibility vary by lender and applicant profile.

Benefits of Home Loan Schemes for First-Time Buyers

These schemes offer:

  • Low interest rates (6.5–10% p.a.).
  • Government subsidies (e.g., PMAY up to ₹2.67 lakh).
  • Long repayment tenures (up to 30 years).
  • Tax benefits under Section 80C and 24(b).
  • Relaxed eligibility for low-income and women buyers.

Tips for Applying for Home Loan Schemes

Maximize your approval chances:

  • Check PMAY Eligibility: Verify income and property criteria for subsidies.
  • Prepare Documentation: Submit KYC, income proof, and property papers.
  • Compare Lenders: Evaluate rates and fees (e.g., SBI vs. HDFC).
  • Use EMI Calculators: Plan repayments with Loanpao’s EMI calculator.
  • Improve Credit Score: A score above 750 ensures better rates.

Frequently Asked Questions

Financing options with subsidies and low rates to help first-time buyers purchase homes.

EWS (income up to ₹3 lakh), LIG (up to ₹6 lakh), and MIG (up to ₹18 lakh) applicants.

Up to 30 years, depending on the lender and scheme.

Yes, women buyers get lower rates (8–9.2% p.a.) and relaxed eligibility.

Submit KYC, income proof, and property details to banks or via Loanpao.