7 Affordable Housing Schemes by Government in India – Benefits And Eligibility
Several affordable housing schemes in India have been introduced in the past few years with combined efforts of the Central Government and the State Governments. These initiatives aim to achieve the mission, “Housing for All by 2022”. Such housing policies are specifically designed to make the process of buying a house simpler and affordable for lower and middle-income groups of people. These policies provide subsidies on home loan interests to eligible citizens for buying or constructing a house with basic facilities like water, electricity, etc.
Read on to check the list of 7 affordable housing schemes in India, their benefits and eligibility criteria.
List of 7 Affordable Housing Schemes by Government in India
The schemes discussed in this article have gathered the attention of many citizens. This is because the schemes can be segmented depending on the State and Central Government policies.
The Central Government initiatives are discussed in the following sections.
1. Pradhan Mantri Awas Yojana (Urban)
PMAY (Urban) is the most significant urban housing scheme in India, which provides subsidies on house loan interests for the purchase or construction of a house. Under this scheme, GOI aims to construct 2 crore affordable houses by the end of 2022.
The income criteria, eligible loan amount for subsidy, portion of interest subsidy and maximum dwelling unit carpet area for different economic sections of the society are discussed below.
| Household Income | Eligible Loan Amount | Amount of Interest Subsidy | Maximum Dwelling Unit Carpet Area | |
| Economically Weaker Section | Up to Rs. 3 lakh | Up to Rs. 6 lakh | 6.50% | 30 square metre |
| Lower-Income Group | Rs. 3 lakh – Rs. 6 lakh | Up to Rs. 6 lakh | 6.50% | 60 square metre |
| Middle-Income Group I | Rs. 6 lakh – Rs. 12 lakh | Up to Rs. 9 lakh | 4% | 160 square metre |
| Middle-Income Group II | Rs. 12 lakh – Rs. 18 lakh | Up to Rs. 12 lakh | 3% | 200 square metre |
The maximum repayment period for all income groups is 20 years.
2.Pradhan Mantri Gramin Awas Yojana
PMAY has also developed rural housing schemes in India. The PMGAY welfare scheme provides a 3% concession on interest rates of home loans not exceeding Rs. 2 lakh. This benefit can be availed for upgrading an existing home or new construction in rural areas. The eligibility criteria are the same as PMAY (Urban) with a few additional details given below:
- A family availing this scheme should not have a solid house
- The beneficiary of the family should only have a spouse and/or unmarried children
- Scheduled Cast (SC), Scheduled Tribe (ST), non-SC or ST who belong to the BPL category and free bonded labourers can avail benefits of this scheme
3. Rajiv Gandhi Awas Yojana Housing Scheme
The Rajiv Gandhi Awas Yojana or Rajiv Awas Yojana (RAY) was launched by GOI in 2009 under the Ministry of Housing and Urban Property Alleviation (MHUPA). It aims to make India slum-free and bring illegal constructions under formal regulations to improve the standard of living.
Benefits of RAY:
- The scheme follows 2 stage implementation strategies to make the city slum-free and prepare projects for selected slum development.
- States, Union Territories (UTs), Urban Local Bodies (ULBs) and Central Government agencies get benefits of financial assistance from this scheme.
- GOI provide Rs. 75,000 of financial assistance to the Economically Weaker Section for dwelling units of 21 to 40 square metres.
Eligibility Criteria for RAY:
- People dwelling in slum areas within a city (notified or not notified), Central Government and state government properties, autonomous bodies under the Act of Parliament, urban local bodies, and urbanised villages inside the city plan are eligible for the scheme.
- Cities and UTs with a predominance of STs, SCs, minorities and slums get priority under the scheme.
- Cities of historic and heritage importance, tourism industry dominant cities and district headquarters get significant consideration.
The state governments have also introduced various housing policies for the economically and socially weaker sections of the society. These schemes aim to provide housing or plot for allotment or construction along with the basic amenities. Some of the State government housing schemes are discussed below in detail.
4. Delhi Development Authority Housing Scheme
The Delhi Development Authority introduced a new housing scheme on December 23, 2021. 18,335 flats are available for booking and sale at a discounted rate in localities such as Dwarka, Jasola, Rohini, Siraspur, Jahangirpuri, and Narela. The four categories of flats available are Lower Income Group (LIG), Higher Income Group (HIG), Middle Income Group (MIG), and Janta Flats. Over 16,000 applications were received by March 10, 2022.
Eligibility criteria for the scheme are as follows:
- Veterans, war widows, SC/ST, EWS individuals and disabled persons can avail of this scheme.
- The applicant should be of a minimum 18 years old.
- The beneficiary or his/her dependant should not have their own residence of more than 67 square metres in the urban area of New Delhi, Delhi or Delhi Cantonment.
- If husband and wife both apply for the scheme and win in the lucky draw, only one can avail of the benefits of this scheme.
5. Tamil Nadu Housing Board Schemes
The Tamil Nadu Housing Board Scheme, previously known as the Chennai City Improvement Trust, started its operation in 1961. The scheme aims to provide affordable housing to the increasing population due to migration for a better lifestyle and career opportunities in urban areas. The scheme has various sub-schemes like Thanjavur housing Division, Trichy Housing Division, Besant Nagar Division, and others.
One has to satisfy these criteria to be eligible for this scheme:
- The applicant should be an original inhabitant of Tamil Nadu over the age of 21
- A salaried individual who does not own any property under other housing schemes is also eligible to apply
6. Maharashtra Housing and Area Development Authority Lottery Scheme
The Maharashtra Housing and Area Development Authority or MHADA launched a lottery scheme to make residential properties accessible. It has 1,300 low-cost houses under this scheme ranging from 14.6 lakh to 5.8 crore.
The eligibility criteria for this scheme depend on an individual’s income and other parameters mentioned below.
- The applicant should be a native of Maharashtra and more than 18 years old.
- The beneficiary must be a salaried individual and possess a PAN card.
- For LIG flats, monthly income has to be between Rs. 25,001 to Rs. 50,000.
- Monthly income for MIG flats should range between Rs. 50,001 to Rs. 75,000.
- To apply for HIG flats, an applicant’s monthly income should be over Rs. 75,000.
7. NTR Housing Scheme
The Government of Andhra Pradesh introduced the NTR Housing Scheme in 2016 to provide affordable housing to the needful people in rural-urban areas of AP. This scheme organises low-interest housing loans for the poor, which facilitates affordable construction or reconstruction of houses through reputed financial institutions.
To get benefits under the scheme, one has to fulfil the following criteria:
- The applicant must be a resident of Andhra Pradesh
- Having a white ration card or BPL (below poverty line) card is mandatory to apply for this scheme.
- One cannot avail of this scheme if he/she owns the property under any of the other government housing schemes.
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Final Word
The above-mentioned government schemes will help a person own a house by providing concessions on home loans or subsidies on the interest rate of a house loan. So, compare the affordable housing schemes in India in 2022, and choose whichever fits your requirements the best.
FAQs
Ans: Yes, tax deduction facilities are available for home loans taken under any government housing scheme. According to the Income Tax Act, 1961, one can avail of tax benefits on the interest portion and principal repayment of a home loan.
Ans: More than 20 projects have been sanctioned under Rajiv Awas Yojana Scheme so far. The development of these projects is undergoing in three cities — Rajasthan, Karnataka, and Gujarat. This scheme has been highly successful till now, with a success rate of 75%.
Ans: According to Regulation 7 of DDA, only those who did not own a flat or land in the Delhi area and their family members were eligible to apply for this scheme. But as per the latest amendment, individuals and their family members who own an area of less than 67 square metres are eligible for this scheme.
Ans: There are four different categories under MHADA. For the EWS category, the price of the units is under Rs. 20 lakh, for LIG, the price ranges from Rs. 20-30 lakh, for MIG, it is Rs. 35-60 lakh, and for HIG, the price ranges from Rs. 60 lakh to 5.8 crores.
Ans: Houses under the NTR housing scheme are segmented according to their price and area. For example, a 300 sq. ft. house will cost Rs. 5.62 lakh, a 365 sq. ft. house will cost Rs. 6.74 lakh and a 430 sq. ft. house will cost Rs. 7.71 lakh.
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Disclaimer: This article has been prepared on the basis of internal data, publicly available information and other sources believed to be reliable. The information contained in this article is for general purposes only and not a complete disclosure of every material fact. It should not be construed as investment advice to any party. The article does not warrant the completeness or accuracy of the information, and disclaims all liabilities, losses and damages arising out of the use of this information. Readers shall be fully liable/responsible for any decision taken on the basis of this article.
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