Housing Schemes

Last Updated 10th Jul 2020

Government Housing Schemes in India

Housing Schemes Launched In
Pradhan Mantri Awas Yojana Scheme for Urban Areas launched in 2015
P. M. Gramin Awas Yojana Scheme for Gramin Areas launched in 2015
DDA Housing Scheme Delhi Government Scheme, Recurring Each Year
T. N. Housing Board Scheme Tamil Nadu Government Scheme, Recurring Each Year
Mhada Lottery Scheme Maharashtra Government Scheme, Recurring Each Year
NTR Housing Scheme Andhra Pradesh Govt Sceheme launched in 2016
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Affordable Housing Schemes in India

A number of housing schemes are currently available throughout the country, which has been introduced by the central and state government at various points of time. The government's stand at present for housing is very encouraging has it plans to achieve 'Housing For All' by the end of the year 2022. Given the present situation of real estate in the country, housing for all by 2022 sounds very ambitious. However, there are multiple housing schemes currently in operation to help achieve this.

Pradhan Mantri Awas Yojana (PMAY)

The initiative of 'Housing for All' was implemented on 17th June 2015. Pradhan Mantri Awas Yojana Scheme is the driving force to achieve the desired result in urban areas. It is a type of credit linked subsidy scheme wherein; interest subsidy will be provided on acquisition and construction of the house. The benefit of the program can also be availed to for the addition of rooms, toilet, kitchen, etc.

The amount of subsidy is based upon the income criteria as per the scheme. The key parameters are:

  • Household income (p.a): Upto Rs. 3 Lakhs for Economically Weaker Sections, Rs. 3.01 – 6.00 lakhs for Lower-Income Group, Rs. 6.01 – 12.00 lakhs for Middle-Income Group-I, and Rs. 12.01 – 18.00 lakhs for Middle-Income Group-II.
  • The eligible loan amount for subsidy: Upto Rs. 6 lakhs for EWS and LIG, upto Rs. 9 lakhs for MIG-I, and upto Rs. 12 lakhs for MIG-II.
  • Quantum of interest subsidy: 6.50% for EWS and LIG, 4% for MIG-I, and 3% for MIG-II.
  • Maximum tenure: The maximum tenure of the loan is 20 years for all income groups.
  • Maximum dwelling unit carpet area: 30 sq.m for EWS, 60 sq.m for LIG, 160 sq.m for MIG-I, and 200 sq.m for MIG-II.

Pradhan Mantri Gramin Awas Yojana

In view of achieving 'Housing for All' by 2022, the government of India launched this welfare scheme to provide low-cost housing for people in rural areas. PMAY-G has increased its target to 1 crore homes. Under PMGAY concession of 3% on the interest rate of home loans of upto Rs. 2 lakhs. The concession can be availed for upgrading an existing home or constructing a new house in rural areas.

Some key features of the scheme are:

  • Schedule tribe, schedule casts, free bonded laborers, non SC/ST under BPL category can avail benefit under this scheme.
  • The family must not have a pucca house.
  • The family should only be consisting of a beneficiary's spouse and, or unmarried children.

DDA Housing Scheme

Each year, DDA launches a new scheme to target specific parts of Delhi to provide DDA Housing Scheme for Economically Weaker Sections. For the year 2019, 18,000 flats were targetted in Dwarka, Vasant Kunj, Rohini sector-34, Kalkaji, and South Delhi.

The registration fee for LIG house is Rs. 1 lakh, for MIG and HIG houses it is Rs. 2 lakhs, for Janta flat it is Rs. 10,000, for 1BHK its Rs. 15,000, and for EWS it is Rs. 25,000.

Some of the key eligibility criteria for DDA housing scheme are:

  • The minimum age required is 18 years.
  • The applicant must not own a flat or any other residential property in Delhi on his/her name or the name of spouse or dependent children.
  • In case you have already been allotted any house/flat under DDA or through any other agency, then you are not eligible for the scheme.

The application process of DDA is straightforward;

  • Fill the application form,
  • Provide id proof like Aadhaar card, PAN card, (mandatory)
  • Registration fee as per flats.

Rajiv Awas Yojana

The Rajiv Awas Yojana was launched in 2009 with the aim to bring illegal constructions within the legal framework and encourage slum-free India. The plan under RAY is first to prepare a Slum Free City Plan and then prepare the project of the selected slum.

Some key objectives of the scheme are:

  • To improve the provisioning of houses, basic civic infrastructure, and amenities in the slum.
  • To facilitate a supportive environment to expand institutional credit linkage for urban poor.
  • Institutionalize the mechanism of preventing slums along with the creation of affordable housing stocks.
  • As part of Rajiv Awas Yojana, on 3rd March 2013, the government introduced the scheme of Affordable Housing in Partnership
  • Support from the central government is provided to EWS/LIG at the rate of Rs. 75,000 per dwelling unit of size 21 to 40 sqm.

In 2015, this scheme was revamped by Central Goverment to Pradhan Mantri Awas Yojana scheme.

NTR Housing Scheme

Through this NTR Housing Scheme, Andhra Pradesh's government aims to build around 10 lakhs houses with an expenditure of Rs. 16,000 crores. The second and third phases of the scheme initiated in January and June 2018, respectively. Under this scheme, 1% of the total urban land will be reversed for housing for the poor. The beneficiary list is expected to be out by December 2019, whereas the housing scheme will get into action on 25th March 2020 on the occasion of Ugadi.

The Andhra government managed to save Rs. 105 crores by inviting contractors for constructing 65,000 houses through reverse bidding. Also, the centre has promised Rs. 1,869 crores under the Pradhan Mantri Awas Yojana along with LIC Housing Finance agreeing for Rs. 5,000 crores.

The scheme is for people who are below the poverty line (BPL) who do not possess any land or house under any government scheme and are also a citizen of the state (A.P).

Tamil Nadu Housing Board Scheme

Through this Tamil Nadu government scheme provides flats for sale to LIG, EWS, MIG, and HIG at affordable prices. The government has launched various projects through the Tamil Nadu Housing Board Scheme, some of them are:

  • Trichy unit of TNHB is providing shops, commercial units, nursery schools, secondary schools, and other public amenities through an auction in areas like Pudukottai, Navalpattu, Manapparai, and Valavanthankottai. The application money for it is 15% of the total price.
  • The Besant Nagar division of TNHB is providing flats through a draw of lots in Indira Nagar and Sholinganallur. While applying 5% of the unit cost needs to be deposited.
  • The Thanjavur Housing Unit of TNHB is providing units under various schemes such as Tamil University Campus Self Finance Scheme, Pattukottai Self Finance Scheme, Thanjavur Scheme, and Tamil University Campus NH Scheme. The applicant should be above 21 years of age and must not have any property throughout the country.

Mhada Lottery Scheme

Maharashtra government, through this Mhada Lottery Scheme, is providing 1384 houses in different categories across Pune, Mumbai, Nagpur, and Aurangabad. The flats are to be allotted through the lottery. The price of EWS flat is Rs. 14 lakhs; price of LIG flat ranges between Rs. 20-25 lakhs, the price of MIG falts ranges between Rs. 35-60 lakhs and price of HIG apartments range between Rs. 60 lakhs to Rs. 5.8 crores.

Key eligibility factors are:

  • The applicant must be of 18 years or above.
  • The applicant should have stayed in Maharashtra for a continuous period of 15 years or more.
  • PAN card is mandatory.

To apply for the Mhada Scheme, you need to register through the online portal by creating an account and then filling the form along with the necessary details and documents. The application fee required can be paid through card or NEFT/RTGS transactions. In case you want to submit a demand draft, then you need to visit a branch of the designated bank along with the print copy of the application form.


What is an affordable housing scheme in India?

The central government of India has introduced various schemes to help people with different incomes avail a home loan or buy their own house like Pradhan Mantri Awas Yojana, Pradhan Mantri Gramin Awas Yojana, Rajiv Awas Yojana, etc. To promote ‘Housing For All’, some of the state governments have also introduced schemes to help people in buying their own house. Some of these schemes are DDA Housing Scheme, Tamil Nadu Housing Board Scheme, etc.

Does the government help first time home buyers?

Yes, the government helps first time home buyers through its affordable housing schemes in which it provides subsidy on the interest rate of the home loan as per the income group and the value of an affordable house. Some state governments also run housing schemes in which the affordable houses are allotted to people with different income levels of the various price range.

Are women eligible for housing schemes in India?

Yes, women are eligible for all the housing schemes in India. However, the schemes exclude those who have already availed the benefit under any similar scheme or already own house.

What are LIG MIG HIG flats?

The government housing schemes have categorized the allotment of benefits based on income levels, which are LIG (Lower Income Group), MIG (Middle Income Group), and HIG (High Income Group). Based on these income groups, each scheme divides the flats to be allotted under the categories of LIG, MIG and HIG flats.

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