Synopsis: This article covers schemes that provide financial assistance for a variety of reasons such as housing, education, EVs, rooftop solar, etc. through subsidies and loans for individuals.
Many people may have to invest a lot of money to buy a house, go to college, buy an e-vehicle, or a rooftop solar. To make these targets affordable, the Government of India has come up with various schemes to provide interest support, financial assistance, low-interest loans, and subsidies. Below are the major government schemes in 2026 that can help individuals and families save money and invest in their future.
Housing Schemes
1. PMAY-U 2.0 (Pradhan Mantri Awas Yojana- Urban 2.0)
The scheme aims to enable one crore urban families to buy, build or rent affordable houses. Under Interest Subsidy Scheme (ISS), Interest subsidy of up to ₹1.80 lakh on eligible home loans. Eligible households under EWS, LIG and MIG categories with an annual income of up to ₹9 lakh, property value up to ₹35 lakh and loan amount up to ₹25 lakh.
The subsidy provides ₹8 lakh loan amount which will be subsidized at 4% with a Loan term of 12 years. First time home buyers (no pucca house) are also eligible and it covers construction, purchase and affordable rental housing.
2. PMAY-G (Pradhan Mantri Awas Yojana – Gramin)
The scheme aims to make basic services available to eligible rural households in permanent houses with financial assistance of ₹1.20 lakh per house on plain land and ₹1.30 lakh per house on North-Eastern and hilly states. Additional Benefits include 90-95 days wages under MGNREGS for construction, Toilet construction under Swachh Bharat Mission with ₹12,000 assistance.
3. Credit Linked Subsidy Scheme (CLSS)
The scheme aims to lower the interest rate of home loans with subsidies on interest up to ₹2.67 lakh for eligible beneficiaries in the previous PMAY framework. Key features include Direct subsidy to loan accounts (lowering EMIs). This applies to EWS, LIG, MIG-I and MIG-II.
Also read: ITR Filing 2026: Fixed Deposit Interest Is Fully Taxable – Here’s How to Report It Without Mistakes
Electric Vehicles (EV) schemes
1. PM E-DRIVE Scheme (PM Electric Drive Revolution in Innovative Vehicle Enhancement)
The scheme aims to accelerate the EV market and fortify the electric mobility ecosystem in India. Benefits include a discount on front purchase of qualified electric two-wheelers, three-wheelers, e-ambulances, e-trucks, and some electric buses. Incentives are calculated directly on the vehicle’s purchase price. The scheme has a ₹10,900 crore outlay. The scheme allocated ₹4,391 crore for over 14,000 e-buses and ₹2,000 crore for nationwide public charging stations.
2. State EV Subsidies
Many states offer other incentives to keep EVs affordable, in addition to central support. Common benefits include road tax exemption, registration fee waiver, purchase subsidy ( varies by state ) and Electric auto-rickshaw, Commercial EV and electric charging station incentives. Some of the states that provide major EV incentives are: Maharashtra, Gujarat, Delhi, Karnataka, Tamil Nadu, Telangana, Kerala, Uttar Pradesh and Madhya Pradesh etc. although these incentives vary from state to state.
Rooftop Solar Schemes
1. PM Surya Ghar: Muft Bijli Yojana
Schemes main aim is to install rooftop solar systems in 1 crore houses throughout India. Scheme Outlay is approx ₹75,021 crore. Subsidy values:
- Up to ₹30,000 for a 1 kW system.
- Up to ₹60,000 for a 2 kW system.
- Up to ₹78,000 for 3 kW and above.
Key Features include 300 units of free electricity per month via solar generation, paid subsidy directly to the bank accounts of the beneficiaries.
2. PM Surya Ghar Solar Loan
The scheme aims to ensure rooftop solar is financially accessible via simple financing. Provides a loan of maximum ₹2 lakh, collateral free at an approx. interest rate of 6.75% through the participating public sector banks.
3. Grid Connected Rooftop Solar Programme (RTS)
The scheme aims to encourage rooftop solar installations, including CFA. Residential consumers who install grid-connected rooftop solar systems at their homes through the National Portal and State DISCOMs will be eligible for the benefit of central subsidy. Eligible individuals can avail subsidies of ₹30,000 per kW up to 2kW and up to ₹78,000 for 3kW and above.
Also read: Top 10 Free Government Schemes Every Indian Should Know About in 2026
Education Loan Schemes
1. PM Vidyalaxmi
The scheme aims to provide meritorious students the opportunity to continue their studies at a higher level without any financial constraint. Students will be provided a loan benefit without a guarantor and without any collateral from the scheduled banks. Education loans to the extent of ₹10 lakh from families with income up to ₹8 lakh will be eligible for 3% education loan interest subvention during the moratorium period. The Government gives 75% credit guarantee support in lending without ensuring any security to the banks for loans up to ₹7.5 lakh.
Students who got admissions to 860+ Quality Higher Education Institutions (QHEIs) like IITs, IIMs, NITs, AIIMS and others are eligible and can be used for technical and professional courses.
Scheme Outlay: ₹3,600 crore (2024–25 to 2030–31).
2. Central Sector Interest Subsidy Scheme (CSIS)
The scheme aims to assist students from economically disadvantaged groups to avail higher education. The government covers the full interest of a loan for eligible Education loans during the moratorium period (course duration+1 year or 6 months after getting a job whichever is earlier).
Students with up to ₹4.5 lakh annual parental income, or students with education loan availed under the Model Education Loan Scheme of the Indian Banks’ Association are eligible. This is applicable for professional and technical courses in recognised institutions in India.
Which Government Schemes should you choose?
Conclusion
The government schemes can help make a life goal more affordable, such as owning a home, higher education, rooftop solar or EV. Subsidies, interest support and financial assistance can help you save a great deal by selecting the right scheme that you are eligible for.
