Such large scale urbanisation has largely been the result of a changing socio-economic structure. Unfortunately, this migration also fuelled an already existing housing crisis, creating massive demands for affordable, yet good quality housing in the metropolitan and suburban areas of India.
To tackle this situation, the Government of India introduced several schemes to provide affordable housing to the economically weaker section of the community. These range from credit linked subsidy schemes to discounted housing units.
Such government housing schemes are beneficial mostly for individuals hailing from lower and middle-income group.
Different government-backed housing schemes available right now
Some of the popular government housing schemes are mentioned below -
Pradhan Mantri Awas Yojana Gramin (PMAYG)
PMAYG is a flagship central government housing scheme, offering subsidised home loans under its Credit Linked Subsidy Scheme as well as providing low-cost residential units to eligible individuals.
Under this scheme, beneficiaries are categorised according to their annual income. PMAYG recognises 3 different groups of applicants –
MIGs (Middle Income Groups, whose annual household income should be a maximum of Rs.6 lakh to Rs.8 lakh).
LIGs (Lower Income Groups, whose annual household income should be a maximum of Rs.3 lakh to Rs.6 lakh).
EWS (Economically Weaker Sections, whose annual household income should be a maximum of Rs.3 lakh).
HUDA housing Scheme
This Government housing scheme is extended by Haryana Urban Development Authority (also known as HUDA), which provides ownership of freehold residential and commercial plots to families whose annual income is within Rs.3 lakh. A participation charge has to be paid while applying under this scheme. Applicants are selected through a lottery system operated by the state government.
Maharashtra Housing and Area Development Authority Scheme
MHADA or Maharashtra Housing and Area Development Authority has allotted multiple ready-to-move residential units to individuals who are in need. Individuals have to participate in a lottery to get the benefit from this government scheme for housing, and the plots are allocated according to one’s income range
Applicants can procure a residential unit depending on their income and requirement. One should also compare the cost of living of their city to understand how much to invest in real estate.
Kerala Housing Board Housing Scheme
The primary housing project undertaken by the Kerala Government includes building residential units with a floor area of 500 sq. ft. each, costing approximately Rs.4 lakh each.
A total of 513,000 individuals have been identified as beneficiaries of this scheme (as of 2018), of which approximately 75,000 belong to the Scheduled Caste category, 14,000 to Scheduled Tribe, and 6,000 are fishermen.
Prospective homebuyers can avail a home loan from one of the several Housing Finance Company to finance their purchase.
The company also brings pre-approved offers that simplify the application process and help save time. Individuals can check their pre-approved offers online by sharing only some essential details like name and contact information.
These government housing schemes primarily operate in a joint venture between a state and the centre. These schemes are likely to uplift the real estate market by infusing liquidity from all strata of society.
- What is the best way to avail of an unsecured loan? Before we answer this question, let us first understand the basics of loans and how they work.