- If you want to buy homes at a less price than the market rate, apply for affordable housing schemes
- Check out here the affordable housing schemes of the central government and various state governments.
The Government of India and the State government provide housing schemes to Indian citizens so that they can buy their homes easily. Irrespective of the class or group they belong to, these housing schemes allow the middle and lower income group to buy their own houses in India, which they are unable to do so due to their financial status. A housing scheme helps you avoid costly property purchases and provides you a house at a lower price than the market price. You can apply for the housing scheme from the selected banks in India or Housing Finance Companies (HFCs). Check out some of the government housing schemes from which you can buy a property in India at less cost than the market price.
Pradhan Mantri Awas Yojana (PMAY)
The government of India has a theme ‘Housing for All by 2022. To achieve it, it has introduced the Pradhan Mantri Awas Yojana (PMAY) scheme. PMAY is a Central government affordable housing scheme for Lower Income Groups (LIG) and Economically Weaker Sections (EWS) and Middle Income Group (MIG) consumers. Take a look at the PMAY scheme both urban and rural.
Who is Eligible to Avail Benefits of Pradhan Mantri Awas Yojana (Urban)?
- Economically Weaker Section (EWS) with an annual income up to INR 3 lakh
- Low Income Group (LIG) people whose annual household income is between INR 3 lakh to INR 6 lakh.
- As per Middle Income Group (MIG) 1, a person earning upto INR 12 lakh per year is entitled to avail a 4% subsidy on a loan of up to Rs 9 lakh. A maximum subsidy of INR 2.35 lakh is granted under a credit-linked subsidy scheme (CLSS)
- Middle Income Group (MIG) 2, a person earning upto INR 18 lakh can avail a 3% subsidy on a loan of up to INR 12 lakh. The maximum subsidy amounts to INR 2.30 lakh under CLSS
Interest Subsidy on PMAY
|PMAY Scheme||Interest Subsidy|
|Economically Weaker Section (EWS)||6.40%|
|Low Income Group (LIG)||6.40%|
|Middle Income Group 1 (MIG 1)||4.00%|
|Middle Income Group 2 (MIG 2)||3.00%|
NOTE: You should not own a pucca house anywhere in India, to get the PMAY benefits. The family must comprise a husband, a wife, and unmarried children. If you meet these basic criteria, you can apply for the PMAY CLSS.
Pradhan Mantri Awas Yojana (Rural)
- The beneficiaries are chosen by the Gram Sabha, according to the data collected on the national level Socio-Economic and Caste Census.
- The aim is to draft the list of socially and economically backward masses of the country to categorize the list of beneficiaries under the plan PMAY Rural scheme.
- If the applicant’s name is listed in the released list of the Gram Sabha, he/she is eligible to apply for a home loan under PMAY rural scheme.
Haryana Housing Board Housing Scheme
The Haryana Urban Development Authority (HUDA), which is known as Haryana Shahari Vikas Pradhikaran (HSVP) scheme, is a new housing scheme by the Haryana Housing Board. This scheme offers freehold residential and commercial plots for construction and allotment in the state, primarily for the socially and economically weaker sections of the society.
You will have to participate in a lottery as per the terms and deadlines to get the benefits of the housing scheme. You need to pay a participation fee and your family income should be up to INR 3 lakh. If you win the draw, you will get access to a freehold plot.
Kerala Housing Board Housing Scheme
Kerala State Housing Board was founded in 1971. The board implemented various housing construction schemes and home loan schemes to meet the residential needs of the economically weaker section. Some of the notable housing schemes that the board has undertaken are.
M.N. Laksham Veedu Punarnirmana Padhathi
Under the scheme, you can do a reconstruction of the dilapidated twin houses into single units and reconstruction of single houses. The government also provides a subsidy amount on your home reconstruction. Kerala State Housing Board finances 50% of the subsidy amount while the balance amount is met by the Local Self Government Departments.
|Scheduled Caste (SC)||INR 1,00,000|
|Scheduled Tribe (ST)||INR 1,25,000|
Innovative Housing Scheme
Under the housing scheme, the residential flats will be constructed in the government land for the displaced labourers who belong to the economically weaker section and reside in the urban area. A total of 212 flats have been constructed in the government land available at Poojappura and Thrikkakara under the innovative housing scheme.
Tsunami Rehabilitation Programme
The coastal housing and resettlement programmes (CHRP) construct houses in districts like Trivandrum, Malappuram, Kozhikode, Kannur and Kasargod.
Suraksha Housing Scheme
People coming from the Economically Weaker Section (EWS) in both urban and rural areas can get financial assistance to construct a house by themselves. They need to have at least 2 cents of land. The scheme has an option to associate voluntary agencies and NGOs to assist people in the construction. The government provides a capital subsidy of INR 9,000 per house, the beneficiary will need to make a voluntary contribution of INR 2,000 and there will be a construction loan worth INR 19,000 for a building costing INR 30,000. In case if the voluntary organizations are associated with the scheme, they will provide the entire loan amount or build the structure up to the roof level.
New Suraksha Housing Scheme
In this scheme, the construction cost of a house is taken as INR 1 lakh having a plinth area of 30 square metre against the present loan amount of INR 30,000. And you’ll get the Government Subsidy of INR 25,000 as against INR 9,000.
Schemes such as GrihaSree Housing Scheme, Haritham Apartments & Kowdiar Heights are also implemented by the Kerala State Housing Board.
The Maharashtra Housing and Area Development Authority Scheme
Maharashtra Housing and Area Development Authority (MHADA) provides affordable housing schemes. A number of houses are set aside for the scheme and allotted on the basis of the income of an individual. If you are a resident of Maharashtra with a valid domicile certificate and are aged 18 years or above and have a PAN card with regular income, you can apply for a home loan under the scheme.
|Lower Income Groups (LIG)||INR 25,001 to INR 50,000|
|Middle Income Group (MIG)||INR 50,001 to INR 75,000|
|High Income Groups (HIG)||> INR 75,000|
How to Apply for MHADA?
- Visit the official Maharashtra Housing and Area Development Authority
- Fill up the application form and select your income group and the lottery scheme
- Print your application acknowledgment form
- And pay the registration fee for the lottery online
To enhance your affordability for a house you can apply for it through Pradhan Mantri Awas Yojana (PMAY) scheme. You need to submit the following documents.
- Aadhaar card
- Domicile certificate
- Voter’s ID card
- Birth certificate
- Driving license
- School leaving certificate
- PAN card
Delhi Development Authority (DDA) Housing Scheme
Delhi Development Authority (DDA) Housing Scheme provides housing to the residents of Delhi. The scheme is associated with the PMAY Credit Linked Subsidy Scheme. The new DDA scheme, which was rolled out in March 2019, offers 5,000 flats in Vasant Kunj, Rohini sector-34, Kalkaji In South Delhi. To qualify for the scheme, you must be an Indian national, over 18 years of age and should belong to EWS, LIG, MIG and HIG category.
You can apply for the scheme from the listed banks on DDA official website. Log into the DDA portal, fill up the application form then make payment to complete the process. The registration fee varies based on the category you belong to. Check out the table to know the DDA registration fee.
|HIG Flats||INR 2 lakh|
|MIG Flats||INR 2 lakh|
|LIG Flats||INR 1 lakh|
|1 BHK Flats||INR 15,000|
|Janta Flats||INR 10,000|
|EWS Reserved Flats||INR 25,000|
If you win at the draw, you can take possession of the flat quickly. You can complete formalities by submitting the documents such as your PAN card, Aadhaar card, voter’s ID card, bank statements and ITR report.
NTR Urban Housing Scheme
To help the underprivileged population of Andhra Pradesh own affordable houses, the Nandamuri Taraka Rama Rao (NTR) Housing Scheme was introduced in 2016. Andhra Pradesh government allotted 15,091 houses under the Pradhan Mantri Awas Yojana (PMAY) and NTR (Urban) Nagar scheme in 2018-19.
Any citizen of Andhra Pradesh who is not a beneficiary of a government housing scheme can apply for the NTR Urban Housing scheme. You should have the BPL or white ration card to apply for the NTR housing scheme. In this scheme, you will get a subsidy of INR 2.5 lakh. And if you belong to SC or ST beneficiaries, an additional INR 50,000 is given to the consumer.
Tamil Nadu Housing Board Scheme
The Tamil Nadu Housing Board (TNHB) provides affordable housing to all the Tamil Nadu residents. There are two categories in which the allotment is being made in the TNHB housing scheme – ‘residential units’ and ‘commercial units’. Reservations are made for different categories as per the government order.
|Scheduled Caste including the AdiDravidas||18 %|
|Scheduled Tribes (ST)||1%|
|State Government Officials||18%|
|Central Government Officials, Employees of Tamil Nadu Electricity Board and local|
|Defence service personnel including Ex-serviceman and widows of Defence personnel||7%|
|Dhobies & Barbers||4%|
|Language Crusaders and Participants in State Border Agitations||1%|
|Employees of Tamil Nadu Housing Board||2%|
|Differently Abled Person||3%|
An initial deposit should be made within 21 days from the date of receipt of the allotment orders from the Tamil Nadu Housing Board. The Initial deposit is fixed at 40% for HIG, 25% for MIG and 15% for LIG of the selling cost based on the request. You can pay the balance amount in EMI from the repayment schedule of 8 to 15 years with a rate of interest ranging from 12% to 18%.
SC or ST including Adi Dravidars, Dhobi, Barbers and working Journalists are not eligible to apply for the scheme under the outright purchase system. In this, you need to pay the cost in full within 30 days plus a grace period of another 30 days.
How to Apply?
Once you identify a flat and the locality, submit the application form and pay the registration fee. Then, finance your home purchase in any of the two ways: outright purchase or hire purchase, which are mentioned above.
West Bengal Housing Board Scheme
The Government of West Bengal, through the administrative control of the Housing Department, which was started in 1973, has been able to construct a minimum of 35,000 dwelling units for various categories of people of this state. The aim is to develop new Houses and Flats and allot them to the people of West Bengal through a lottery system.
You can visit the West Bengal Housing Board official website to apply for the scheme.
|Category||Household Monthly Income||Maximum Price of House or Flat|
|EWS (Economically Weaker Sections)||Up to INR 10,000||INR 1,75,000|
|LIG (Lower Income Groups)||INR 10,001 to INR 15,000||INR 4,10,000|
|MIG 1 (Middle Income Groups)||INR 15,001 to INR 25,000||INR 9,20,000|
|MIG 2 (Middle Income Groups)||INR 25,001 to INR 40,000||INR 15,00,000|
|HIG (Higher Income Groups)||> INR 40,000||As per the housing department|
How to Apply?
You can apply for the scheme by going to the official website of West Bengal Housing Board. Fill up a form and submit it with your ID, income and address proof. The duly filled-up application form, along with the registration money and required documents are to be submitted at the branch from where the application was obtained.