With the combined efforts from State and Central Governments, many affordable housing schemes have been launched in India over the last few years. They aim to make homeownership accessible to all, including the lower and middle-income groups. Eligible citizens can obtain subsidies on their Home Loan interest rates and principal amounts while purchasing or constructing a house.
Read on to check out some ongoing schemes in India, their eligibility criteria, and their benefits.
1. Pradhan Mantri Awas Yojana (Urban)
PMAY (Urban) is a popular, affordable housing scheme in India that has gained the attention of many urban citizens. It provides subsidies on home loan interests for property construction or purchase. The amount of interest subsidy ranges from 3 to 6.50%, varying by the income group, loan amount, household income, and carpet area of the dwelling. Four different types of beneficiaries can avail the benefits of this scheme, including those in the EWS, LIG, MIG-I, and MIG-II sections of society.
2. Rajiv Gandhi Awas Yojana Housing Scheme
The government of India launched the Rajiv Gandhi Awas Yojana in 2009 under the MHUPA (Ministry of Housing and Urban Property Alleviation). Under the scheme, states, union territories, central government agencies, and urban local bodies get financial assistance to work on slum improvement. Its ultimate goal is to make a slum-free India by regulating illegal constructions to improve living standards.
3. DDA Housing Scheme
The DDA (Delhi Development Authority) introduced a new DDA housing scheme in December 2021. It made 18,335 flats available for sale and booking at discounted rates in areas like Rohini, Jasola, Dwarka, Narela, Jahangirpuri, and Siraspur. Available in four categories for Janta, LIG, MIG, and HIG, more than 16,000 people applied for a flat under this scheme by March 2022. Any applicant above 18 years can win a lucky draw and avail of the scheme’s benefits. Veterans, SC/ST, war widows, disabled persons, and EWS individuals are also eligible for a flat under this scheme.
4. Tamil Nadu Housing Board Scheme
Earlier known as the Chennai City Improvement Trust, the Tamil Nadu Housing Board Scheme was launched in 1961. Considering the increasing population and migration to the state, the scheme provides affordable housing to the citizens to stabilise their lives and give them more career opportunities. Sub-schemes like Trichy Housing Division, Thanjavur Housing Division, and Besant Nagar Division are a part of this affordable housing scheme in India.
To qualify for this scheme, an individual should be at least 21 years of age, an original Tamil Nadu inhabitant, and should not own property under any other housing scheme.
5. Pradhan Mantri Gramin Awas Yojana
The government also runs the PMAY housing scheme in the country’s rural areas. The welfare scheme provides a 3% subsidy on Home Loan interest rates not exceeding ₹ 2 Lakh. Eligible beneficiaries can apply for home loan and avail of benefits under the scheme for constructing a new house or upgrading an existing one. The eligibility criteria for urban and rural PMAY projects are almost the same.
6. Lottery Scheme by the Maharashtra Housing & Area Development Authority
The MHADA, or Maharashtra Housing & Area Development Authority, launched this lottery scheme to make low-cost homes accessible to all. The project has 1,300 houses ranging from around ₹ 14.5 Lakh to 5.5 Crore. To qualify for the scheme benefits, an individual should be at least 18 years of age and a native of Maharashtra. The authority has also set minimum income requirements for flats under different categories. For instance, an applicant must earn ₹ 25,000 to 50,000 for a LIG flat and over ₹ 75,000 for a HIG flat.
7. NTR Housing Scheme
The Andhra Pradesh Government launched the NTR Housing Scheme in 2016 to provide affordable homes to people in the state’s rural-urban areas. When people complete the Home Loan application procedure, they get low-interest Home Loans, facilitating affordable home construction and reconstruction through reputable financial institutions. Eligible candidates should be residents of Andhra Pradesh with a Below Poverty Line (BPL) card or white ration card. An individual who already owns a property under a government housing scheme cannot avail the benefits of this affordable housing scheme.
These are some of the most sought-after affordable housing schemes that help people own a house with concessions on housing loans or interest rate subsidies. Compare their benefits and eligibility requirements, and opt for an affordable housing scheme in India to get a home that best fits your needs. Several NBFCs provide affordable housing loans in India at competitive interest rates. Couple it with an appropriate housing scheme to maximise the benefits.