Government Schemes for Home Loans

 

Overview 

Your dream of owning a home is now more accessible! Using the related government schemes, one can fulfill their dream even faster. Owning real estate is an unfulfilled dream of many, and it is a concerning issue. Central and state governments have taken initiatives to provide homes at subsidized rates. This blog is fully dedicated to Government schemes for Home loans that our state and central government ensures. 


The government of India understands that every person has a different socio and economic background. Thus, schemes are launched accordingly. These schemes will help you find affordable housing options. Pradhan Mantri Awas Yojana is one of the biggest government schemes that offer subsidies to rural and urban populations who belong to economically weaker sections of society. To learn more about other government schemes, read the full article. 


Must Read: Best Banks for Home Loans in India




Central Government Schemes 

Primarily, the central government has launched two schemes related to affordable housing. Every person who has Indian citizenship and meets the eligibility criteria can apply under this scheme. The two are discussed below.

Pradhan Mantri Awas Yojana (PMAY)

Pradhan Mantri Awas Yojana, previously known as Indira Awas Yojana, was renamed in 2016. The scheme aimed to provide affordable houses to beneficiaries in rural India (except Delhi & Chandigarh). This scheme provides a separate amount for amenities like electricity, gas and water. 

Who all are eligible for Pradhan Mantri Awas Yojana (PMAY)

The government of India provides home loan subsidies to people belonging to all 3 Income groups. The groups are EWS, LIG (Low-income group) and MIG (Middle-Income group). 

Eligibility criteria for economically weaker sections require a minimum annual income of upto 3 lakhs. 

  • Housing loan amount on which the subsidy is allocated - upto 6 lakhs

  • House carpet area - upto 60 meters 

  • Subsidy’s Interest rate - 6.50%


Do Read: Pradhan Mantri Mudra loan (PMMY) - Loan Types & Eligibility Criteria. 

Rajiv Awas Yojana

Rajiv Awas Yojana envisages the slogan of “Slum free India”, providing facilities of basic civic infrastructure to each and every citizen. It was started with the aim of eradicating Indian slums and bringing illegal construction under the legal framework. The scheme offers an additional Rs 75,000 and dwelling units to people belonging to the EWS category. To date, the scheme has built nearly 46,000 homes.

State Government schemes for Home loans

The different state governments enable housing loan schemes to help underserved and oppressed people to have a roof over their heads. 

Innovative housing scheme

Separate residential apartments are to be built for displaced workers belonging to the EWS category to make a living in the urban areas. 

Kerala Housing Period scheme

Enabled in the year 1971 to meet the housing needs of people belonging to the EWS category. The board has various housing and financing schemes. 

Suraksha Housing scheme

In both rural and urban areas, people who belong to the EWS category can take financial aid to build the home of their dreams. 

New Suraksha Housing scheme

New Suraksha Housing scheme provides financial aid to people belonging to the economically weaker section (EWS) of the society. It is given to those who have 2 cents of land under the new Suraksha scheme; the cost for each house is Rs 1,00,000.  

Delhi Development Authority (DDA) housing scheme 

This scheme is entitled only to the people who are residing in Delhi. This home loan scheme is connected to the Pradhan Mantri Awas Yojana (PMAY) credit-linked subsidy program. The scheme provided nearly 10,000 flats across Delhi in 2019. 

Maharashtra Housing and Area Development Scheme (MHADA)

MHADA scheme happens to be a luck-based scheme; a lottery system is used to run the scheme. Based on a random lucky draw, homes are set aside for the MHADA system. Loans are being distributed to individuals who fall into various income categories. 


Every Individual who proves his eligibility for MHADA housing schemes can apply. Homes are being set aside for low-income groups, economically weaker sections and middle-income groups.  

NTR Urban Housing scheme 

Nandamuri Tamaka Ramarao (NTR) urban housing scheme was launched in the state of Andhra Pradesh to assist a poor population in acquiring homes. One must have a BPL or white ration card to apply for the scheme; one is eligible to receive a subsidy of INR 2.5 lakhs. 

Tamil Nadu Housing Board scheme 

The Tamil Nadu government regulates the Tamil Nadu housing board (TNHB). This scheme enables property in residential and commercial units. People with disabilities and the state police force are considered under this plan.

Haryana Housing Board scheme 

The housing board of Haryana has taken charge of establishing the construction division, design cells, and other amenities. These facilities ease affordable housing plans for socially and economically poor sections of society. 

Conclusion 

The government of India, along with various state governments, have enabled various schemes using which one can avail of affordable housing for them. These schemes diminish the challenges faced by the people and provide them ease in converting their dream of having a home into a reality. Pradhan Mantri Awas Yojana happens to be the most extensive scheme that is entirely focused on the provided affordable houses to the underserved and oppressed people. One gets a subsidy of Rs 2.67 lakhs on the home loan. 


Suggested Read: 

Top MSME Schemes in India 

How to increase CIBIL score 

Different Types of Debt Instruments  

CIBIL Dispute Resolution - Offline & Online 

Government Schemes for Home Loans: Frequently Asked Questions 

Q.1 Who is eligible for the PMAY Yojana?

Any Indian household with an annual income ranging from 3-18 lakhs per annum is eligible under PMAY. 

Q.2 Where can I directly apply for PMAY?

One can directly apply at https://pmaymis.gov.in/.

Q.3 Is Pradhan Mantri Awas Yojana stopped?

No, the Union cabinet has approved continuation for PMAY (urban) till December 2024. 

Q.4 Who is Eligible for the MHADA Mumbai lottery 2023?

One must have a domicile certificate from Maharashtra to show that one has lived for 15 straight years in the state. 18 years or above is required. 

Q.5 Can MHADA flat be rented?

Yes, one can take MHADA flats on rent after taking NOC from authorities.


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