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Housing Scheme 2021

Government Housing Schemes 2021

Last Updated 27th Nov 2021

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 Scheme launched in 2016
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Affordable Housing Schemes in India

The central and state government has launched multiple house loan schemes from time to time. These affordable rental housing schemes aim to simplify the process of purchasing a house. In addition, the housing schemes also work towards the inclusion of middle class and lower-income groups to avail their dream house. Further, with the rising cost of the property, availing a house becomes challenging without these affordable housing schemes.

Central Government Housing Scheme

The government of India has launched multiple affordable housing schemes that aim to achieve the objective of Housing for All by 2022. The govt housing schemes offer subsidies on home loan interest rates to the eligible individuals to purchase, construct or acquire a pucca house with basic amenities like electricity, water etc.

Pradhan Mantri Awas Yojana (PMAY)

Pradhan Mantri Awas Yojana is an initiative of the government of India under which govt aims to build 2 Crores affordable houses by the year 2022. Affordable housing aims to make ownership of homes a reality for all sections of society, including the lower-income groups. Under this scheme, the central government provides an interest subsidy on the acquisition and construction of the house. In addition, you can also avail the programme's benefit 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 ₹ 3 Lakh for Economically Weaker Sections, ₹ 3 Lakh – 6 Lakh for Lower-Income Group, ₹ 6 Lakh – 12 Lakh for Middle-Income Group-I, and ₹ 12 Lakh – 18 Lakh for Middle-Income Group-II.
  • The eligible loan amount for subsidy: Upto ₹ 6 Lakh for EWS and LIG, upto ₹ 9 Lakh for MIG-I, and ₹ 12 Lakh 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

To achieve 'Housing for All' by 2022, the government of India launched this welfare scheme to provide low-cost housing for people in rural areas.Under PMGAY, the government offers concession of 3% on the home loan rates of home loans of upto ₹ 2 Lakh. The concession can be availed for upgrading an existing home or constructing a new house in rural areas.

  • Schedule tribe, schedule casts, free bonded labourers, non-SC/ST under the 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.

Housing Scheme By State Govt

The state governments have introduced govt home schemes to offer freehold residential and commercial plots for construction and allotment. These affordable housing schemes primarily target the socially and economically weaker sections of the society to meet their housing needs. Some of the govt scheme for house loans are provided below:

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 2019, the government targeted 18,000 flats were targetted in Dwarka, Vasant Kunj, Rohini Sector-34, Kalkaji, and South Delhi.

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

Some of the key eligibility criteria for the 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.
  • If you have already been allotted any house/flat under DDA or through any other agency, you are not eligible for the scheme.

The application process of DDA is simple and you need to follow the steps as mentioned below:

  • 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 to bring illegal constructions within the legal framework and encourage slum-free India.

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 the 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 ₹ 75,000 per dwelling unit of size 21 to 40 sqm.

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

NTR Housing Scheme

The NTR Housing Scheme aims to build around 10 lakhs houses with an expenditure of ₹ 16,000 crores. The second and third phases of the scheme were 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 Andhra government managed to save ₹ 105 crores by inviting contractors for constructing 65,000 houses through reverse bidding. Also, the centre has promised ₹ 1,869 crores under the Pradhan Mantri Awas Yojana along with LIC Housing Finance agreeing for ₹ 5,000 crores.

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

Tamil Nadu Housing Board Scheme

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

  • The Trichy unit of TNHB provides 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 provides flats through a draw of lots in Indira Nagar and Sholinganallur. While applying, you need to deposit 5% of the unit cost.
  • The Thanjavur Housing Unit of TNHB provides units under various schemes such as Tamil University Campus Self Finance Scheme, Pattukottai Self Finance Scheme, Thanjavur Scheme, and Tamil University Campus NH Scheme. To apply, 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, provides 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 ₹ 14 Lakh; price of LIG flat ranges between ₹ 20 Lakh-25 Lakh, the price of MIG flats ranges between ₹ 35 Lakh-60 Lakh and price of HIG apartments range between ₹ 60 Lakh to ₹ 5.80 Cr.

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 filling the form along with the necessary details and documents. The required application fee can be paid through card or NEFT/RTGS transactions.If you want to submit a demand draft, you need to visit a branch of the designated bank along with the print copy of the application form.

FAQs

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 to buy their own house. These affordable housing schemes include Pradhan Mantri Awas Yojana, Pradhan Mantri Gramin Awas Yojana, Rajiv Awas Yojana, etc. In addition, to promote ‘Housing For All’, some state governments have also introduced schemes to help people buy 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. Under these schemes, you can avail of the home loan interest rate subsidy based on your income level. In addition, some state governments also run housing schemes to allot affordable houses to people with different income levels.

Are women eligible for housing schemes in India?

Yes, women are eligible for all the housing schemes in India. However, you cannot avail of the benefits if you own a house or have already availed of the benefit under any similar housing schemes.

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.

How can I get a loan under the government home loan scheme?

To get a loan under the central or state govt home loan scheme, you must meet the eligibility criteria. If you fulfil these criteria, you can apply for a home loan.

Are there any tax benefits in government housing schemes?

Yes, you can claim tax benefits on a home loan availed under govt housing loan schemes. As per Income Tax Act, you can avail of the tax deductions & exemptions on both interest and principal repayment.

How can I apply for an affordable housing scheme?

To apply for an affordable housing scheme, you need to check the eligibility criteria. If you meet the criteria of the housing scheme you wish to apply for, you can get the benefit through the bank or NBFC. In addition, the benefit can be claimed online and offline while applying for a home loan.


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