Government Schemes for Affordable Housing: A Home Loan Guide

4 minutes, 38 seconds Read

The Indian government promised to provide housing for everyone by the end of 2022. In this pursuit, some housing programs were introduced by various state governments. Along with increasing availability for low and moderate-income households, these programs also seek to simplify the home-buying experience for consumers. This article highlights some of the best-known Federal and State Housing programs that offer homeownership opportunities for the everyday American at an affordable price. Consider purchasing a new home. It might just be the right point in time for you to apply for a mortgage. It could be time to apply for home loan.

State And Federal Government Housing Programmes

To promote affordable housing throughout the nation, both the federal government and the state governments administer several housing programs:

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 will now review the salient characteristics and prerequisites for these government-sponsored housing programmes. An individual can easily apply for home loan because the banks are providing various schemes for it.

Pradhan Mantri Awas Yojana (PMAY)

The national government introduced the PMAY housing programme in 2015. By the end of 2022, the programme hopes to have “Housing for All”. Individuals in the Lower Income Groups (LIG), Economically Weaker Sections (EWS), and Middle Income Groups (MIG) have access to inexpensive housing under PMAY. The Pradhan Mantri Awas Yojana is one of the most significant government initiatives for decent housing. ‘Housing for All’ is the goal of this effort, and it is set for 2022. Financial aid is offered under PMAY for building new homes or renovating existing ones. The PMAY programme has two parts, Urban and Gramin, which serve the needs of the urban and rural populations, respectively. Some of the criteria for applying for a home loan are mentioned below:

Income Criteria as per PMAY:

One must fall into one of the following income levels to profit from the PMAY programme: The economically disadvantaged up to 3 lakhs, Lower-Income Group (LIG) between 3 and 6 lakhs, Middle-Income Group-I (MIG-I) between 6 and 12 lakhs, and Middle-Income Group-II (MIG-II) between 12 and 18 lakhs. If you are planning to get a house? Apply for home loan.

Eligible loan amount and subsidy under PMAY

A person’s eligibility for credit under the PMAY scheme may vary depending on the income bracket they fall into. To gain an estimate of how much loan one is entitled to, see the following table: Lower-Income Group Up to $65,000, Economically Weaker Section Up to $65,000, Middle-Income Group-I Up to $95,000, and Middle-Income Group-II Up to $125,000. You may save a significant amount of money throughout the loan by negotiating a reasonable home loan interest rate.

Rajiv Awas Yojna (RAY)

The Rajiv Awas Yojana (RAY) urges the states and union territories to put all unauthorised structures under a formal framework and anticipates an India free of slums. The centre has authorised the Affordable Housing in Partnership (AHP) initiative to be a component of RAY to promote accessible housing under the programme. For the economically weaker sections (EWS), the Rajiv Awas Yojana also offers help for $75,000 and dwelling units (DUs) that range in size from 21 to 40 square metres. The plan has so far cost more than 1,398 crores and produced close to 46,000 homes. If one needs money, one can easily apply for home loan. Looking for a place to call home? Now is the time to apply for home loan.

Maharashtra Housing and Area Development Authority Scheme (MHADA)

MHADA manages a housing programme to make housing more accessible to everyone. A lottery mechanism is used to run the scheme. These residences, which range in price from $15.35 lakh to $1.42 crore, are offered in neighbourhoods including Borivali, Ghatkopar, Mulund, Mankhurd, Goregaon, and Vikhroli. Looking at that ideal home? It’s time to apply for home loan and take ownership.

Although everyone is eligible for the MHADA housing programme, a specific number of homes are set aside for members of the Low Income Group (LIG), Economically Weaker Section (EWS), and middle-middle-income group (MIG). The low home loan interest rate by the bank delivered a pleasant surprise to me.

Delhi Development Authority Housing Scheme (DDA)

Residents in Delhi’s NCT have access to cheap homes under the Delhi Development Authority (DDA) homes Scheme. The programme is connected to the PMAY Credit Linked Subsidy Programme. In March, the DDA 2019 programme launched and provided 18,000 apartments in Vasant Kunj and Narela. In addition to categorising applicants based on income, the programme explicitly reserves flats for SC/ST, handicapped, and war widows. Your monthly payments might be significantly impacted by securing a favourable home loan interest rate.

Haryana Housing Board Scheme

The state government board has emphasised home development and allocation within the state, especially for the socially and economically poorer segments of society, since the establishment of the Haryana Housing Board Act (Act No. 20 of 1971). The establishment of building divisions, design cells, and other essential committees that oversee the implementation of the various activities linked to affordable housing programmes is the responsibility of the Haryana Housing Board. Before making a choice, it is essential to compare the home loan interest rate offered by several institutions. Once you apply for home loan, your loan will be easily sanctioned.


Government schemes like PMAY CLSS and state-specific initiatives provide affordable housing options. Researching and understanding different systems is crucial for choosing the right one for your needs and budget. However, fluctuating interest rates can make it difficult to plan long-term finances, making it essential to choose a suitable system.

Similar Posts