Government Housing Schemes That Can Help You Purchase A Home In India

The government has its plans to achieve 'Housing For All' by the end of the year 2022. There are multiple govt housing schemes currently in operation to help achieve this. This housing scheme aims to simplify the home buying process; it also seeks to work towards allowing those from the middle and lower-income group in India and help them to fulfil their dream of owning a home. So, let's take a look at these housing schemes which have garnered the attention of many homebuyers:

Income Criteria as per PMAY

Under the PMAY scheme, you must meet the following income criteria:


Household income (per annum)

Economically Weaker Sections (EWS)

Up to Rs. 3 Lakhs

Lower-Income Group (LIG)

Rs. 3 Lakhs - Rs. 6 Lakhs

Middle-Income Group-I (MIG-I)

Rs. 6 Lakhs - Rs. 12 Lakhs

Middle-Income Group-II (MIG-II)

Rs. 12 Lakhs - Rs. 18 Lakhs

The eligible loan amount for subsidy

Economically Weaker Sections

Up to Rs. 6 Lakhs

Lower-Income Group

Up to Rs. 6 Lakhs

Middle-Income Group-I

Up to Rs. 9 Lakhs

Middle-Income Group-II

Up to Rs.12 Lakhs

The maximum loan tenure allowed for every age group is 20 years.

Key Eligibility Criteria for DDA Housing Scheme

The key eligibility criteria for DDA housing scheme are:

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

  • The applicant cannot own another residential property in Delhi either in his/her name or under the names of the spouse or dependent children.

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

MHADA Lottery Scheme Key Eligibility Factors

The key eligibility factors considered for MHADA lottery scheme are:

  • An 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.

Pradhan Mantri Gramin Awaas Yojana (PMGAY)

The PMGAY scheme focuses on providing pucca houses with necessary amenities to homeless families. The objective of the scheme is to build one crore homes of 25 sqm by 2022. The government offers to finance for the cost of construction in the ratio of 60:40 for plain areas and 90:10 for the northeastern and hilly regions. The Pradhan Mantri Gramin Awaas Yojana offers an amount of Rs 1.2 lakh to beneficiaries that belong  to do not have shelter and are living on alms tribal groups and legally released bonded labour.

Pradhan Mantri Awas Yojana (PMAY)

PMAY was initiated to make homeownership affordable for individuals belonging to the Economically Weaker Sections (EWS) category. You get affordability through this scheme via interest subsidy of up to Rs.2.67 Lakhs on your home loan. To avail benefits, you first have to qualify as a beneficiary as per your economic standing. Based on the annual income of your household, you can be eligible as a beneficiary under the Economically Weaker Sections (EWS), the Low-Income Group (LIG) and the Middle-Income Group (MIG) category.

The Maharashtra Housing and Area Development Authority Scheme (MHADA)

MHADA has government housing schemes that are operated through a lottery system; this lottery is launched by MHADA every year. 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. These housing units price range is between Rs 15.35 lakh and Rs 1.42 crore and will be available in localities like Borivali, Ghatkopar, Mulund, Mankhurd, Goregaon and Vikhroli.

Tamil Nadu Housing Board Scheme (TNHB)

The Tamil Nadu Housing Board (TNHB) scheme helps citizens purchase flats economically by constructing and auctioning homes at affordable rates. Upon receiving the applications, TNHB allots flats based on the income and reservation categories the individual belongs to such as the general public, working journalists, and dhobis and barbers, etc. With several apartments in different localities, with varying configurations up for grabs, here’s how you can become a homeowner in Tamil Nadu affordably.

Delhi Development Authority Housing Scheme (DDA)

Associated with PMAY’s Credit Linked Subsidy Scheme, the DDA Housing Scheme provides economical housing to all based on income. 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 specially reserves apartments for war widows, disabled persons, ex-servicemen and SC/ST individuals. Read on to know more.

Rajiv Awas Yojna (RAY)

The Rajiv Awas Yojana (RAY) anticipates a slum-free India and encourages state and union territories (UT) to bring all illegal constructions under a formal system. To increase 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 Rs 75,000 for the economically weaker sections (EWS), Dwelling Units (DUs) of the size of 21 to 40 sqm. Over Rs, 1,398 crores have been spent while nearly 46,000 houses have been developed under the 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 will cost Rs 3.5 lakh, the centre offering Rs 1.5 lakh and the state government offering Rs 1 lakh under the NTR Housing Scheme. The beneficiaries will be offered a loan amount of Rs 75,000 and will only contribute Rs 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.

Haryana Housing Board Housing Scheme

Since the inception of Haryana Housing Board Act (Act No. 20 of 1971), the state government board has prioritized 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 Housing Board Housing Scheme is a new govt housing scheme that offers freehold residential and commercial plots.

Kerala Housing Board Housing Scheme

The Kerala State Housing Board implemented various schemes for construction of houses and home loans schemes to meet the residential requirements of the economically weaker sections. Some of the affordable housing schemes the board has undertaken include the GrihaSree Housing Scheme, Haritham Apartments, and Kowdiar Heights. As these are new housing schemes, the information about these schemes is available on the official Kerala State Housing Board website. So you can go through each one of these details before you proceed to apply.

Further, as a beneficiary, you will have to take a home loan to complete your home purchase. Based on the subsection you qualify under, the loan amount and the size of the house you are eligible to buy is determined. Further, this affordable housing scheme gives preference to women and senior citizens, making allotment of ground floor accommodation compulsory for senior citizens. It is strict about eco-friendly construction too.

These govt housing schemes can help you get the necessary financing to own a home of your own. It would help if you chose a scheme that fits your requirements. Getting a Home Loan at Finserv MARKETS is an ideal way to get loans at low-interest rates. Avail a home loan at Finserv MARKETS at attractive interest rates to meet your financial requirements for your new home without any worry. The home loan eligibility criteria are relatively simple, no collateral required and minimal documentation. With the Finserv MARKETS App, you can apply for a loan online and get pre-approved offers. 

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