According to stories published by Live mint, about one out of every six Indian households has moved from non-permanent houses to pucca ones between 2011 and 2016. The reform has been made possible with the introduction of several government housing schemes in India. These schemes provide financial support to individuals belonging to various economic sections of the society through interest subsidies on home loans.
Following is a list of some of the more comprehensive housing schemes introduced by the government to encourage its housing-for-all initiative.
- Pradhan Mantri Awas Yojana (Urban)
The Central Government launched this scheme in 2015 to rehabilitate the urban poor through affordable housing. Under the PMAY Urban scheme, the Centre plans to build about 2 crore homes by 2022 with the financial aid of Rs. 2 Trillion. Four components primarily comprise this mission, namely –
- Redevelopment of slums with participation of the private sector.
- Affordable housing by partnering with the public and private sector.
- Beneficiary-led house.
- Credit linked subsidy scheme (CLSS).
Under the four components, Credit Linked Subsidy Scheme has proven to be extremely beneficial for homebuyers with over Rs. 12,000 Crore worth loan for house in India already disbursed. Those eligible for this scheme can avail home loan from any of the financial institutions like Bajaj Finserv, at a subsidised interest rate.
- Pradhan Mantri Awas Yojana (Gramin)
Among the government housing schemes in India, it is a flagship programme to promote social welfare and provide housing to the rural poor.
Under this scheme for a housing loan, individuals can avail the assistance of up to Rs. 1, 30,000 for house construction. These houses integrate key benefits of the Pradhan Mantri Awas Scheme and come equipped with facilities like electricity, LPG connection, toilet, drinking water, etc.
- Maharashtra Housing and Area Development Authority Scheme
Among the government housing schemes in India, this scheme introduced by the Maharashtra government provides affordable housing to the economically backward strata of society. Houses constructed under this scheme are allotted through a lottery system.
For instance, MHADA in Mumbai has around 1,300 homes for allocation belonging to various price ranges. For the year 2019, 63 out of these 1,300 houses were reserved for the Economically Weaker Section of the society. The lower-income groups and middle-income groups also had respective allocations.
To avail, the benefits of this scheme, individuals need to fulfil the following eligibility criteria –
- A resident of Maharashtra with domicile certificate.
- Be above the age of 18 years.
- Have a steady source of income.
- Possess a PAN card.
Individuals eligible for these government housing schemes in India can apply through the official MHADA website.
- Delhi Development Authority Housing Scheme
It is another one of the state-introduced government home schemes in India and is associated with the CLSS of PMAY.
With this scheme, individuals can avail economical housing in areas like Narela and Vasant Kunj in Delhi as per their income. Besides income-based categories, it also provides provisions for disabled individuals, war widows, individuals belonging to ST/SC categories, etc.
Individuals belonging to income-based categories like EWS, LIG, MIG I and II can avail houses under this scheme which are priced at a range between Rs. 10 Lakh and Rs. 1.73 Crore.
Further, since this scheme is linked to CLSS, individuals can avail interest subsidies on home loans availed under DDAHS and pay lower home loan EMI. However, you must know how much home loan EMI you can afford before you apply for this scheme to maximise your benefits from it.
Apart from these, the government has also introduced schemes like Tamil Nadu Housing Board Scheme, NTR Urban Housing Scheme, etc. to make affordable living a reality for all. Nevertheless, it is pertinent for individuals to look up the requisite eligibility criteria to ensure hassle-free approval.