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.
The union, as well as the state governments, run various housing schemes to facilitate affordable housing in the country:
Pradhan Mantri Awas Yojana (PMAY)
Rajiv Awas Yojana (RAY)
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.
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).
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 |
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% |
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 |
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.
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 (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 |
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.
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% |
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%.
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 |
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.
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.
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.