Top 6 Prominent Housing Finance Schemes in India

• An affordable housing scheme is the government’s initiative to assist people in getting a home in a budget-friendly manner.
• Several such schemes offer various benefits, including subsidised housing that reduces the overall cost of home ownership.
• Some prominent schemes include Pradhan Mantri Awas Yojana —Urban, Pradhan Mantri Awas Yojana—Gramin, and the Maharashtra Housing and Area Development Authority Lottery Scheme.

Buying a home requires a significant monetary investment, and soaring property prices make it even more challenging. However, the government launched affordable housing schemes to increase homeownership.You may wonder what an affordable housing scheme is and how it is beneficial.In this blog, you will learn about prominent affordable housing schemes that aim to improve home affordability.

An affordable housing scheme is the government’s initiative to assist people in getting a home in a budget-friendly manner. Several such schemes offer various benefits, including subsidised housing that reduces the overall cost of a house.

Let’s take a look at some prominent affordable housing schemes.

Pradhan Mantri Awas Yojana - Urban (PMAY-U)

PMAY - U was launched with the mission of facilitating ‘Housing for All’.Under this affordable housing scheme, the ministry provides central assistance to states/union territories to address the housing requirements of slum dwellers and others in urban areas. Its key features include:

• This affordable housing scheme is designed for the EWS (economically weaker section), LIG (low-income group), and MIG (middle-income group).
• It comprises four verticals - Beneficiary-led individual house construction or enhancement, affordable housing in partnership with the public or private sector, ISSR (‘In-situ’ slum redevelopment), and CLSS (credit-linked subsidy Scheme).

Pradhan Mantri Awas Yojana - Gramin (PMGAY-G)

This affordable housing scheme was launched with the objective of ‘Housing for All’ with a special focus on rural areas. Here are its important features:

• It aims to provide a pucca house with basic amenities to the homeless and those living in kutcha and dilapidated houses.
• It aims to ensure the safety, hygiene and social inclusiveness of eligible beneficiaries.

Delhi Development Authority (DDA) Housing Scheme

The DDA constructs houses addressing the needs and purchasing capacity of the different strata of society. To date, it has launched over 50 housing schemes for various categories of flats. Below are some relevant points for your reference:

• The allotment takes place completely online.
• Physical visits to the DDA offices are required only for flat possession and conveyance deed execution.

Tamil Nadu Housing Board (TNHB) Scheme

Tamil Nadu Housing Board (TNHB) was established under the Tamil Nadu Housing Board Act, 1961, to meet the growing housing demand across the state. It focuses on:

• Achieving inclusive growth through projects for EWS (Economically Weaker Sections), LIG (Low Income Group), MIG (Middle Income Group), and HIG (Higher Income Group).
• Allotting plots, flats, and houses to the general public transparently.

Maharashtra Housing and Area Development Authority (MHADA) Lottery Scheme

MHADA aims to provide affordable houses through initiatives like the lottery scheme. This is another affordable housing scheme that allows people to buy properties at subsidised rates, i.e. costs lower than those offered by private builders. The following are key points to note:

• MHADA usually launches a lottery scheme every year, which is likely to increase in future.
• The lottery scheme offers an equal opportunity to all applicants and fosters trust and transparency among the home buyers through public draws.

A.P. State Housing Corporation Limited (APSHCL) Housing Scheme

APSHCL was incorporated to assist BPL (Below Poverty Line) families, financially and technically, for pucca house construction. It is the nodal agency for implementing centrally assisted housing and state-sponsored schemes. It aims to:

• Reduce homelessness, overcrowding, and housing instability to promote social equity.
• Propagate cost-effective and eco-friendly building components/technologies along with a supply of construction materials to the beneficiaries at the discretion of the beneficiaries.

Also Read: Home Loan Process - Step-by-Step Procedure to Get a Home Loan

Homeownership becomes more accessible when you have financial help. It is always a good idea to stay informed about various government initiatives and know the ones applicable to you. Another source of such financial help is a home loan that reduces your financial burden while giving a flexible repayment option.If you are curious to know more about how you can accommodate a home loan in your current financial budget, consult an Aditya Birla Capital representative today.