Affordable Housing Schemes in India
Affordable housing schemes are launched by state and central governments in India from time to time. These housing schemes aim to provide affordable houses to all and help individuals live with dignity. These housing schemes help citizens purchase affordable homes at a subsidised rate with better basic amenities, such as water, electricity, and sanitation. The interest rate charged on home loans under these housing schemes is considerably lower than the market rates. One can buy affordable houses under these housing schemes by availing subsidised home loans from selected banks or housing finance companies in India. These affordable housing schemes aim to provide financial support to economically poor, backward class, and slum dwellers so that they can avail of subsidies while buying their houses.
Some of the housing schemes in India being run by state and central governments are:
Pradhan Mantri Awas Yojana Urban (PMAYU)
The flagship project PMAYU was launched in 2015 by the central government of India. It proposes “Housing for All” under the Credit Linked Subsidy Scheme (CLSS) by 2022. PMAYU aims to provide affordable housing in over 4000 towns across India. The scheme puts applicants with annual income up to Rs.3 lakh per annum under the Economical Weaker Section (EWS) category. Those with annual income between Rs.6 to Rs.12 lakh or Rs.12 to Rs.18 lakh per annum are put under the MIG(I) and MIG(II) categories. The MIG(I) or MIG(II) categories can avail of a subsidy of 3% and 4% amounting to Rs 2.35 to Rs 2.30 lakh, respectively.
Pradhan Mantri Awas Yojana- Gramin/Rural (PMAY-G)
PMAYG provides affordable housing in rural areas. The scheme aims to provide housing benefits to people residing in rural India. PMAYG was rechristened from Indira Awas Yojana in 2016. All rural areas across India, except for Delhi and Chandigarh, are listed under the scheme “Housing for All”.
The beneficiaries of this project must belong to EWS, LIGs or Below Poverty Line (BPL) categories. The beneficiaries belonging to the PMAY list are eligible for a subsidy of 6% interest rate, amounting to Rs.2.67 lakh for constructing or purchasing a pucca house.
Rajiv Awas Yojana
Rajiv Awas Yojana was launched in 2009. It aims to bring all the illegal housing construction under the aegis of a formal structure. Under this scheme, all the slum areas across India are to be converted into affordable housing stocks through a public-private partnership under the Affordable Housing in Partnership. The EWS and LIG applicants are eligible for a subsidy of Rs.75,000 to own a house of the size of 21 to 40 square meters.
NTR Housing Scheme
The Andhra Pradesh government launched the NTR housing scheme in 2016 to provide affordable housing for underprivileged people in both urban and rural regions in the state. This scheme is a part of the PMAY scheme and has the same objective of “Housing for All”. This housing scheme is solely for economically weaker sections who own a white ration card or a Below Poverty Line (BPL) card. The beneficiaries of the NTR Rural housing scheme and NTR Urban housing scheme can receive subsidy amounts of Rs.1.5 lakh and Rs.2.5 lakh, respectively. The applicant belonging to SC/ST categories are given an additional amount of Rs.50,000 under both urban and rural categories.
The Maharashtra Housing and Area Development Authority Scheme
Maharashtra Housing and Area Development Authority (MHADA) provides an affordable housing scheme for the people of Maharashtra, who are above 18 years and have a regular income. You can apply in the category of your income (LIG, MIG, or High Income Group (HIG)) and choose the lottery scheme. Lots are drawn to choose the beneficiary, for allotting house per the income category. This housing scheme could also be applied through PMAY.
Delhi Development Authority (DDA) Housing Scheme
DDA housing scheme provides affordable houses for the residents of Delhi. To avail of this scheme, one must be a resident of Delhi, must be above 18 years of age, and should belong to any one of the income categories: EWS, LIG, MIG, or HIG. The eligible applicants are allotted houses through drawing of lots. Registration fee is charged per the income category and is refundable.
Tamil Nadu Housing Board (TNHB) Scheme
Tamil Nadu Housing Board provides affordable housing to LIG, MIG, and HIG. This scheme provides reservation to different groups (SC – 18%, ST-1%, state government officials – 18%, defence personnel – 7%, central government officials – 8%, dhobis and barbers – 4%, working journalists – 3%, differently-abled – 3%, language crusaders – 1%, employees of TNHB – 2%, and general public – 38%) in the state. Eligible individuals can apply by identifying the housing society and the locality by paying the registration fees. Once allotted, they can purchase the house by choosing to finance the loan through Outright Purchase or Hire Purchase.