To bridge the massive gap between the demand and supply for housing units in India, the government of India has launched many affordable housing schemes, including the PMAY. Read on to know more about such schemes.
The government of India and its ancillary bodies launch various affordable housing schemes from time to time. Regulated by the central government or the state government, the primary objective of these schemes is to provide affordable housing to the poor and make the home-buying process easy for them.
These schemes also work towards the inclusion of the poor and the lower-income sections of the society and help them realise their dream of becoming a homeowner. Consider the current economic scenario where many people lost their jobs due to the COVID-19 pandemic and the financial instability; the affordable housing schemes come as a major boon for all.
As a potential homebuyer, you can either apply for a home loan under the affordable housing schemes and get an interest subsidy or get a plot or a new home allotted to you. So, without any further ado, let us look at some of the popular, affordable housing initiatives in India.
PMAY – Pradhan Mantri Awas Yojana
The PMAY scheme was launched in 2015 under the ‘Housing for all’ mission. Under this scheme, the government aims to build more than two crore new affordable housing units across cities and rural locations in India by March 2022. With the implementation of the PMAY, the government wishes to eradicate the slums and provide the slum-dwellers and other eligible beneficiaries a new and permanent housing unit.
Apart from building new homes, the government also aims to provide financial aid to the lower-income groups to become homeowners. The aid is offered through subsidy on the home loan interest rate. To ensure that everyone gets maximum benefit from the PMAYscheme, the government has divided the beneficiary into three categories based on their annual income.
The categories include – EWS (Economically Weaker Section), LIG (Lower-Income Group) and MIG (Middle-income Group). The subsidy is decided based on the income category of the beneficiary. Another significant highlight of PMAY is that the houses built under the scheme are made from eco-friendly material and environment-friendly construction technology. Also, all the homes are mandated to have basic facilities like hygienic sanitation, supply for clean water, 24×7 electricity and gas connection.
MHADA – The Maharashtra Housing and Area Development Authority Scheme
To provide affordable housing units to the poor sections in Maharashtra, the state government started the MHADA scheme. Under the scheme, the government allows new homes to the eligible beneficiaries through a lottery system.
A specific number of houses are set aside for the scheme and allotted based on income. For example, the prices for MHADA homes in Mumbai ranges from Rs. 14 lakhs to Rs. 5 crores. In 2019, more than 60 housing units priced from Rs. 20 lakhs to Rs. 30 lakhs were allotted to LIG applicants. And, about 600 lakhs priced at Rs. 60 lakhs were allotted to MIG applicants.
DDAHS – Delhi Development Authority Housing Scheme
Associated with the PMAY’s CLSS (Credit Linked Subsidy Scheme), the DDAHS provides affordable housing to all based on the beneficiary’s income. The scheme was introduced in 2019, and it offers about 18,000 affordable housing units in different locations across Delhi, including Narela and Vasant Kunj. Apart from income-based categorisation, the housing units are also reserved for disabled people, war widows, and ex-servicemen under the scheme.
KHBHS – Kerala Housing Board Housing Scheme
This is another state-government initiative. The Kerala government scheme, the KHBHS, was started in 1971, and under the scheme, the government has constructed several homes and offered home loans to meet the residential needs of the poor in the state.
Apart from the above-mentioned government schemes, many other schemes in India are offered by different state governments. If you are looking to buy a new home or apply for a home loan, it is advisable to do your research about the PMAY scheme and the local state-government housing scheme and take advantage of it.