Purchasing a dream home is an exciting prospect that many people have been preparing for years. We all want to own a beautiful home in a prime location with the best facilities and amenities.
However, according to a report, there has been a severe shortage of urban housing for the economically weaker sections of society in India. In 2012, the gap between the demand and supply of urban housing was so glaring that the economically weaker sections (EWS) and low-income group (LIG) constituted 96 percent of the total housing shortage in the country.
Keeping this situation in mind, the Government of India and the Reserve Bank of India introduced a range of affordable housing schemes through the launch of new projects in the affordable housing segment between 2016-2017. Here are four well-known government housing schemes in India that one should know about.
1. Pradhan Mantri Awas Yojana
Abbreviated as PMAY, the Pradhan Mantri Awas Yojana was launched by the government of India on June 25, 2015, to offer affordable housing to the Economically Weaker Sections (EWS) of society through an interest rate subsidy on housing loans.
To qualify as a beneficiary under this government home loan scheme, one should be a member of the following authorized sections/groups:
- EWS or Economically Weaker Section
- LIG or Low-Income Group
- MIG1 or Middle-Income Group 1
- MIG2 or Middle-Income Group 2
The home loan amount and the home’s size will be determined per the individual’s economic category. The housing scheme also gives special preference to senior citizens and women. For instance, senior citizens will be allotted homes only on the ground floor.
2. Maharashtra Housing and Area Development Authority Scheme (MHADA)
MHADA comprises several schemes wherein a fixed number of homes are constructed and reserved for individuals under this government housing scheme by the state government of Maharashtra. Through a lottery-like system, the houses will then be allotted based on one’s income.
The scheme serves to provide affordable housing across the cities of Mumbai and Pune across the Economically Weaker Sections (EWS), Low Income Group (LIG), Middle Income Group (MIG), and High-Income Group (HIG). The prices of the residential units are categorized as per the income groups.
Any resident of Maharashtra with a valid AADHAR, PAN (Permanent Account Number), and above the age of 18 years can apply for this scheme through the official MHADA portal by submitting a duly filled application and paying the registration fee online.
3. Tamil Nadu Housing Board Scheme(TNHB)
The TNHB is managed by the government of Tamil Nadu and offers affordable housing to Tamil Nadu residents. One can be allotted a property either under the residential unit category or the commercial unit category.
There are reservations under this government house-buying scheme based on caste and occupation; differently abled citizens also have a reservation.
An individual can purchase a home of their choice either through:
- an outright purchase, wherein they must pay the whole amount to the housing board within 30 days of the allotment.
- a hire purchase, wherein an initial payment must be made within 21 days of receiving the allotment, and the balance can be paid as EMIs between 8 – 15 years, with an interest rate of between 12% – 18%.
4. Delhi Development Authority Housing Scheme (DDA)
The Delhi Development Authority (DDA) Housing Scheme is among the better-known affordable housing schemes in India since it is associated with the Pradhan Mantri Awas Yojana Credit Linked Subsidy Scheme.
Aiming to offer affordable housing to residents of the National Capital Territory of Delhi, as well as reserving flats for people with disabilities, ex-servicemen, war widows, and SC/ST persons, the DDA scheme was introduced in March 2019 and offered 18,000 flats in the localities of Vasant Kunj and Narela.
To be eligible for the DDA housing scheme, the applicant should:
- Be above 18 years of age
- Don’t have another residential property in Delhi in their name or their children/spouse’s name.
- Not already have a flat allotted under the DDA scheme or any other government scheme.
Apart from making affordable housing available to all, especially for the lower and middle-income groups in the country, these government housing schemes by the central government and different state governments also serve another important purpose. The registration procedure and other steps involved in purchasing a home under these housing schemes in India acquaint individuals with the home-buying process, thereby simplifying it and educating them about the real estate market.
*Disclaimer- This article is based on the information publicly available for general use as well as reference links mentioned herein. We do not claim any responsibility regarding the genuineness of the same. The information provided herein does not, and is not intended to, constitute legal advice; instead, it is for general informational purposes only. We expressly disclaim/disown any liability, which may arise due to any decision taken by any person/s basis the article hereof. Readers should obtain separate advice with respect to any particular information provided herein.