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.
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.
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.
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:
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.
Here are the benefits of RAY:
Here are the eligibility Criteria for RAY:
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.
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.
The eligibility criteria for the scheme are as follows:
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 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 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 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.
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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