Shelter along with food and clothing forms part of the most basic needs for a person to lead a decent life. With a developing country like India, a huge part of the population aspires to have homes of their own. Government of India in collaboration with the state governments provide various housing schemes and offer subsidy on loans to its citizens, which help them buy their dream homes, irrespective of their class or group. These schemes help the common man to buy a house at a price lower than the prevalent market rates of the location with the help of various benefits in the form of subsidies. This ensures the inclusion of EWS & LIG segment customers in to the main stream of the society and fulfil their dream to own a house. One can opt for such schemes either directly through the government portals or through selected banks or housing finance companies.
Such affordable housing schemes can be divided into two broad categories as follows:
I. Central government housing schemes
A. Pradhan Mantri Awas Yojana (PMAY)
PMAY was launched by the Government of India under its mission “Housing for All by 2022” in order to provide affordable housing to the EWS, LIG and MIG segment consumers. The main aim of the government was to build 2 crore affordable houses by the year 2022. Under PMAY, the central government provides an interest subsidy on the purchase or construction of such units. Such subsidies majorly depend on the income criteria of the consumer. This scheme is further divided into PMAY – Urban and PMAY – Gramin, depending upon the location of housing units.
Who can apply for PMAY – Urban:
Person from Economically Weaker Section (EWS) with an annual household income of less than Rs. 3 Lakhs and can avail an interest subsidy up to 6.40 percent
Person from Low Income Group (LIG) with an annual household income between Rs. 3 lakhs to Rs. 6 lakhs and can avail an interest subsidy up to 6.40 percent
Person from Middle Income Group (MIG-1) with an annual household income between Rs. 6 lakhs to Rs. 12 lakhs and can avail an interest subsidy up to 4.00 percent with a maximum subsidy of Rs. 2.35 lakhs under a credit-linked subsidy scheme (CLSS)
Person from Middle Income Group (MIG-2) with an annual household income between Rs. 12 lakhs to Rs 18 lakhs and can avail an interest subsidy up to 3.00 percent with a maximum subsidy of Rs. 2.30 lakhs under a credit-linked subsidy scheme (CLSS)
The Government of India has extended the third and final phase for PMAY Urban till March 31, 2022.
Who can apply for PMAY – Gramin:
List of kutcha houses for PMAY-G is prepared & confirmed by village gramsabhas and panchayats
Person or family should not own a pucca house anywhere in the country
Households without any shelter
Primitive tribal groups, free bonded labours, non-SC/ST consumers under BPL category
Under PMAY-G scheme, the beneficiaries can avail a loan up to Rs. 70,000 from financial institutions with an interest subsidy of 3%. Maximum loan amount & subsidy that can be availed is Rs. 2 lakhs and Rs. 38,359 respectively
The Union Cabinet has extended the PMAY Gramin scheme till March 31, 2024.
II. State government housing schemes
1. DDA Housing Scheme
Delhi Development Authority (DDA) through its housing scheme provide affordable housing units to residents of Delhi in association with PMAY Credit Linked Subsidy Scheme. Applications under the same can be done either online through DDA website or through banks listed & associated with DDA. The various categories under DDA scheme are Janta Flats, EWS, LIG, MIG & HIG.
Following are the basic eligibility criteria for application:
Applicant should be at least 18 years of age
Applicant or spouse or dependent children should not own a residential property in Delhi
Applicant should not have been allotted any unit earlier through DDA or through any other government welfare agency.
MHADA housing scheme
Maharashtra Housing & Area Development Authority (MHADA) through its housing scheme provide affordable housing units to residents of Maharashtra. The authority sets aside a number of housing units and allots the same to beneficiaries every year through a lottery system on the basis of their income. Applications under the same can be done either online through MHADA website or through banks listed & associated with MHADA. The various categories under MHADA scheme are EWS, LIG, MIG & HIG.
Following are the basic eligibility criteria for application:
Applicant should be at least 18 years of age
Applicant should be a resident of Maharashtra for at least 15 years
Applicant must possess a valid PAN card.
Tamil Nadu Housing Board Scheme
The Tamil Nadu Housing Board Scheme provides residential and commercial units for sale to EWS, LIG, MIG and HIG customers at an affordable price to the resident of Tamil Nadu. Reservations for different categories are made as per the government order in place. Application can be made directly to local offices of TN Housing Board or through banks associated with them.
To apply for such scheme, the applicant should be at least 21-years of age and should not own any property on his/her name throughout the country.
(Ashish Jain is Managing Director of Star Housing Finance Limited.)
