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The government of India plans to achieve 'Housing For All' by the end of the year 2022. There are multiple government housing schemes currently in operation to help achieve this ambitious goal. These schemes attempt to not only make housing affordable for citizens in the lower and medium income groups but also simplify the house buying process for the buyers. In this article, we are going to discuss some of the most popular housing schemes run by the central government and the various state governments in the country to make housing affordable for the common man.

Central Government & State Government Housing Schemes

The union, as well as the state governments, run various housing schemes to facilitate affordable housing in the country:

Central Government Housing Schemes:

  • Pradhan Mantri Awas Yojana (PMAY)

  • Rajiv Awas Yojana (RAY)

State Government Housing Schemes:

  • Maharashtra Housing and Area Development Authority Scheme (MHADA)

  • Delhi Development Authority Housing Scheme (DDA)

  • Haryana Housing Board Housing Scheme

  • NTR Urban Housing Scheme

We shall now discuss the key features and the eligibility criteria of each of these government-run housing schemes.

Pradhan Mantri Awas Yojana (PMAY)

PMAY is a housing scheme launched by the central government in the year 2015. The scheme targets to achieve “Housing for All” by the end of the year 2022. PMAY provides affordable housing to individuals in the Lower Income Groups (LIG), Economically Weaker Sections (EWS) and Middle Income Group (MIG).

Income Criteria as per PMAY

In order to avail the benefit of the PMAY scheme one must fall in one of the following income brackets:

Sub-categories

Household income (per annum)

Economically Weaker Sections (EWS)

Up to ₹3 Lakhs

Lower-Income Group (LIG)

₹3 Lakhs - ₹6 Lakhs

Middle-Income Group-I (MIG-I)

₹6 Lakhs - ₹12 Lakhs

Middle-Income Group-II (MIG-II)

₹12 Lakhs - ₹18 Lakhs

 

Eligible Loan Amount and Subsidy under PMAY

The amount of loan one is eligible for under the PMAY scheme depends upon the income group they fall in. You may refer to the following table to get an idea of how much loan amount one is eligible for:

Income Group

Loan Amount

Economically Weaker Section

Up to ₹6 Lakhs

Lower-Income Group

Up to ₹6 Lakhs

Middle-Income Group-I

Up to ₹9 Lakhs

Middle-Income Group-II

Up to ₹12 Lakhs

 

Furthermore, the subsidy on the interest rate also depends upon the income group of the borrower. Refer to the following table for details:

Income Group

Subsidy on Interest Rate

Economically Weaker Section

6.40%

Lower-Income Group

6.40%

Middle-Income Group-I

4.00%

Middle-Income Group-II

3.00%

 

Rajiv Awas Yojna (RAY)

The Rajiv Awas Yojana (RAY) envisions a slum-free India and encourages the states and union territories to bring all illegal constructions under a formal system. To promote affordable housing under the scheme, the centre has approved the Affordable Housing in Partnership (AHP) scheme to be part of RAY. The Rajiv Awas Yojana also provides support of ₹75,000 and Dwelling Units (DUs) of the size of 21 to 40 sqm for the economically weaker sections (EWS). Over ₹1,398 crores have been spent and nearly 46,000 houses have been developed under the scheme so far.

Maharashtra Housing and Area Development Authority Scheme (MHADA)

MHADA runs a housing scheme to facilitate affordable living for everyone. The scheme is operated through a lottery system. A certain number of houses are set aside for the MHADA scheme and loans are allotted for buyers that belong to different income groups, based on lottery draw results. The price of these houses is between ₹15.35 Lakhs and ₹1.42 crore and are available in localities like Borivali, Ghatkopar, Mulund, Mankhurd, Goregaon and Vikhroli.

While the MHADA housing scheme is for everyone, MHADA reserves a certain number of houses for individuals belonging to the Low Income Group (LIG), Economically Weaker Section (EWS) and Middle Income Group (MIG). The income-based classification of the applicants is done as per the following table:

Income Group

Monthly Income

Lower Income Groups (LIG)

₹25,001 to ₹50,000

Middle Income Group (MIG)

₹50,001 to ₹75,000

High Income Groups (HIG)

> ₹75,000

 

MHADA Lottery Scheme Key Eligibility Criteria

In order to be eligible for availing the benefit of the MHADA housing scheme, one must fulfil the following eligibility criteria:

  • The applicant must be at least 18 years of age.

  • The applicant must have been a resident of Maharashtra for at least 15 years.

  • The applicant must have a valid PAN card.

How to Apply for the MHADA Scheme?

You can apply for the MHADA housing scheme online through the official MHADA website. All you have to do is follow a few simple steps:

  • Visit the official MHADA website.

  • Fill out the application form and select the income group you fall in.

  • Now take a printout of your application acknowledgement form.

  • Complete the registration by paying the applicable registration fee.

For your application to be processed, you will be required to submit the following documents at the time of applying for the MHADA housing scheme:

  • Aadhaar Card

  • Voter ID Card

  • Domicile Certificate

  • Birth Certificate

  • Driving licence

  • Passport

  • School leaving certificate

  • PAN Card

Delhi Development Authority Housing Scheme (DDA)

Delhi Development Authority (DDA) Housing Scheme provides affordable housing to the residents of the NCT of Delhi. The scheme is associated with the PMAY Credit Linked Subsidy Scheme. The DDA 2019 scheme was rolled out in March and offered 18,000 flats in Vasant Kunj and Narela. Apart from the income-based categorization, the scheme especially reserves apartments for war widows, disabled persons, ex-servicemen and SC/ST individuals.

In order to register for the DDA housing scheme, you must apply yourself for the same on the official DDA website. You will also be charged a registration fee as a token amount at the time of registration. The amount of the registration fee charged depends upon the income group you belong to. The following table illustrates the registration fee applicable for individuals belonging to different income groups:

Flat Type

Registration Fee

High Income Group (HIG) Flats

₹2 Lakhs

Medium Income Group (MIG) Flats

₹2 Lakhs

Low Income Group (LIG) Flats

₹1 Lakhs

Economically Weaker Section (EWS) Flats

₹25,000

1 BHK Flats

₹15,000

Janta Flats

₹10,000

 

Key Eligibility Criteria for DDA Housing Scheme

In order to avail the benefit of the DDA Housing Scheme, one must fulfil the following eligibility conditions:

  • The applicant must be at least 18 years of age.

  • The applicant must not own another residential property in Delhi either in their name or under the names of their spouse or dependent children.

  • The applicant is not eligible for the scheme if they have already been allotted a flat under DDA or through any other government welfare agency.

Tamil Nadu Housing Board Scheme (TNHB)

TNHB is a housing scheme run by the government of Tamil Nadu to provide affordable housing to the residents of the state. The properties under this scheme are allotted under two categories- residential units and commercial units. There are caste-based and occupation-based reservations under the scheme. Differently-abled individuals also get a reservation under the scheme. The following table illustrates the various reservations applicable on property allotment under the Tamil Nadu Housing Board Scheme:

Category

Reservation

Scheduled Caste (SC)

18 %

Scheduled Tribes (ST)

1%

State Government Officials

18 %

Central Government Officials, Employees of Tamil Nadu Electricity Board and local bodies

8 %

Defence personnel including ex-servicemen and widows of defence personnel

7%

Dhobies and Barbers

4%

Working Journalists

3%

Language Crusaders and Participants in State Border Agitations

1%

Employees of Tamil Nadu Housing Board

2%

General Public

38%

Differently Abled Persons

3%

 

How to Apply for TNHB Scheme

Applying for a flat/house under the THHB scheme is fairly simple. Select the flat/house of your choice and submit the application form to TNHB. Now there are two methods of making the payment before the allotment is made:

  • Outright Purchase: If you choose to make the payment via this method, you are required to pay the entire amount to the housing board within 30 days of allotment. A grace period of another 30 days is allowed in case the payment is not received within 30 days. SC or ST including Adi Dravidars, Dhobi, Barbers and working Journalists are not eligible for outright purchase.

  • Hire Purchase: Under this method, an initial payment is to be made within 21 days of receipt of the allotment order. The initial deposit is 40% of the selling cost for HIG, 25% of the selling cost for MIG and 15% of the selling cost for LIG applicants. The balance amount can be paid in EMIs with a repayment schedule of 8 to 15 years and a rate of interest ranging between 12% and 18%.

West Bengal Housing Board Scheme

The government of West Bengal runs the West Bengal Housing Board Scheme to provide for the housing needs of the residents of the state. The scheme was introduced in 1973 and over 35,000 houses have been constructed under the scheme. There is a capping on the maximum price of the flat one can be allotted under the scheme based upon the income group they fall in:

Income Group

Household Monthly Income

Maximum Price of House or Flat

EWS (Economically Weaker Section)

Up to ₹10,000

₹1,75,000

LIG (Lower Income Group)

₹10,001 to ₹15,000

₹4,10,000

MIG 1 (Middle Income Group)

₹15,001 to ₹25,000

₹9,20,000

MIG 2 (Middle Income Group)

₹25,001 to ₹40,000

₹15,00,000

HIG 1 (High Income Group)

> ₹40,000

As per the state housing department

 

How to Apply for West Bengal Housing Board Scheme?

You can easily apply for the West Bengal Housing Board Scheme by following the steps mentioned below:

  • Step 1: Visit the official West Bengal Housing Board website.

  • Step 2: Navigate to “Format for Application Form” under the “Housing Estate” menu.

  • Step 3: Download the application form and take a printout of the same.

  • Step 4: Fill in all the required details in the form.

  • Step 5: Now submit the duly filled application form along with the required documents (ID proof, address proof, income proof, etc.) to the local branch office of the West Bengal Housing Board.

Haryana Housing Board Scheme

Since the inception of Haryana Housing Board Act (Act No. 20 of 1971), the state government board has prioritised home construction and allotment within the state, primarily for the socially and economically weaker sections of society. The Haryana Housing Board is responsible for setting up construction divisions, design cells, and other necessary committees that look into the execution of the varied activities related to affordable housing schemes. Haryana Board Housing Scheme is a new government housing scheme that offers freehold residential and commercial plots.

 

Kerala Housing Board Housing Scheme

The Kerala Housing Board Scheme was introduced in 1971. The board implemented various housing construction schemes and housing loan schemes to meet the residential needs of the economically weaker sections of society. Some of the notable housing schemes undertaken by the board are:

  • M.N. Laksham Veedu Punarnirmana Padhathi: This scheme allows the reconstruction of twin houses into two separate single units. The scheme provides concessions on the amount required for reconstruction.

  • Innovative Housing Scheme: Under this housing scheme, the residential flats are constructed on government land for the displaced labourers who belong to the economically weaker sections and reside in the urban areas.

  • Tsunami Rehabilitation Programme: This scheme facilitates the construction of houses in coastal districts like Trivandrum, Malappuram, Kozhikode, Kannur and Kasargod.

  • Suraksha Housing Scheme: Under this scheme, the government provides a capital subsidy of ₹9,000 per house and the beneficiary needs to make a voluntary contribution of ₹2,000 and there is a construction loan worth ₹19,000 for a building costing ₹30,000.

  • New Suraksha Housing Scheme: Under this scheme, the construction cost of a house is taken as ₹Lakhs having a plinth area of 30 sq metres against the present loan amount of ₹30,000. You get the government subsidy of ₹25,000 as against ₹9,000 under this scheme.

NTR Urban Housing Scheme

The NTR Housing Scheme was first introduced in 2016, to help Andhra Pradesh’s underprivileged own a home affordably. During FY 2018–2019, the Andhra Pradesh government sanctioned the allotment of 15,091 houses under the Pradhan Mantri Awas Yojana (PMAY) - NTR (Urban) Nagar scheme. Each house under the scheme costs ₹3.5 Lakhs, the centre offering ₹1.5 Lakhs and the state government offering ₹1 Lakhs under the NTR Housing Scheme. The beneficiaries will be offered a loan amount of ₹75,000 and will only contribute ₹25,000. The state government's objective is to build 13,66,557 houses in the rural areas and 5,39,286 houses in urban areas by making Rs 56,000 crore of investment.