The Central Government’s home loan interest subsidy is meant for the soldier families who have paid the heaviest price in the nation’s service — widows of soldiers killed in war, soldiers disabled in war, and families of soldiers who died or were disabled due to service in peacetime. It is run by the Kendriya Sainik Board (KSB) under the Department of Ex-Servicemen Welfare (DESW), Ministry of Defence. Under it, 50% of the interest paid on a home loan taken to build a house is reimbursed — but the subsidy applies only to a loan of up to ₹1 lakh, even if the actual loan is larger.
How much help is given
The subsidy reimburses 50% of the interest charged by a bank or a Government/public sector institution (such as LIC, GIC or HUDCO) on a loan taken for construction of a house. The subsidy is calculated only on interest on a loan of up to ₹1,00,000 — if your loan is bigger than ₹1 lakh, the subsidy still covers only the interest on the ₹1 lakh portion. This is a one-time assistance, not a yearly allowance.
Who is eligible
The help is given only to three categories — War Bereaved families, War Disabled soldiers, and families of Attributable Peace Time Casualties (soldiers killed or disabled in incidents attributable to military service during peacetime). It applies to all ranks. One important point — not every ex-serviceman is eligible for this scheme.
Conditions on the home loan
The subsidy is given only on a home loan taken for construction of a house. The loan must be from a bank or a Government/public sector financial institution. The application must include proof of eligibility — such as proof of being a war widow or a war-disabled soldier — and the bank’s interest certificate. Applications go through the Zilla Sainik Board (ZSB) to the Kendriya Sainik Board, so start the process at the Sainik Board office of your district and take the latest form from there.
Why this scheme matters
In the KSB’s list of welfare schemes, this assistance is kept for families whose breadwinner was lost in war or service. Building a house is one of the biggest needs for such families, and a 50% reimbursement of interest lightens the burden of the loan somewhat. Remember — this is not a general home loan subsidy, and it is not for every ex-serviceman. Before applying, check the scheme’s name and conditions in the KSB welfare schemes list on the DESW website.
Frequently Asked Questions
Q1: How much help is given under the home loan interest subsidy?
A: 50% of the interest paid on the home loan — but the subsidy applies only to interest on a loan of up to ₹1 lakh.
Q2: Who is eligible for this scheme?
A: Only three categories — war bereaved families, war-disabled soldiers, and families of attributable peacetime casualties.
Q3: Does every ex-serviceman get this subsidy?
A: No — it is only for the three categories above. Other ex-servicemen are covered separately under other KSB welfare schemes.
Q4: How do I apply?
A: Contact the Zilla Sainik Board of your district — the application goes through it to the Kendriya Sainik Board.
Useful links
- Department of Ex-Servicemen Welfare — KSB welfare schemes: https://www.desw.gov.in/ksb-welfare-schemes-glance-0
- Home Loan Interest Subsidy on MyScheme: https://www.myscheme.gov.in/schemes/faishl
- List of all 726 Central Government schemes: /english/kendra-sarkar-ki-yojnayen-2/
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