India has always been plagued by a severe housing shortage. The nation stood at a shortfall of almost 24.71 million dwelling units at the end of its 10th Five Year Plan, out of which almost 88.14% (21.78 million) affected the economically weaker section of the community.
The Government of India introduced several housing schemes to address this issue. These schemes were designed to distribute living quarters and habitable accommodation to individuals who belonged to BPL (Below Poverty Level) or LIG (Low Income Group). Government-backed housing schemes in Tamil Nadu, Uttar Pradesh, Maharashtra and other parts of the country helped reduce the number of unsheltered individuals significantly.
List of Housing Schemes
The Government of India encouraged several special housing schemes along with financial support to allow individuals to purchase or build their own residents. These schemes offer large deductions on the price of plot or property, subsidy on home loan interests, and government-backed credit system like the Tamil Nadu Government home loan scheme. These plans are necessary to provide accommodation to the country’s population residing in the rural as well as metropolitan areas by the end of 2022.
1. Pradhan Mantri Awas Yojana –
Pradhan Mantri Awas Yojana, or PMAY, was introduced in 2015. It is a housing scheme aimed to provide living accommodations to every citizen by the end of 2022. PMAY is aimed at both urban and rural populations.
The Central Government will provide assistance in collaboration with State and UTS Governments like the Tamil Nadu Housing Board. Under the urban scheme, applicants buying their first home in urban areas will enjoy home loan interest subsidy of three to four percent on loans of Rs. 9 Lakh and Rs. 12 Lakh.
The rural housing scheme focuses on providing accommodation with basic amenities to families. The government is aiming to build 1 Crore houses by the end of 2022.
However, an applicant will only get the benefits if they avail credits from a lender that complies with assistance from PMAY.
2. Rajiv Awas Yojna –
Rajiv Awas Yojna (RAY) aims to build a slum-free country and bring all illegal constructions within an official system. RAY offers financial support to economically weaker sections of the community to build dwelling units between 21 to 40 sq. Meters. It has benefitted more than 46,000 homes throughout the country.
3. Tamil Nadu Housing Board Scheme –
Tamil Nadu Housing Board Scheme was initiated to provide accommodation to residents of various income groups. TNHB works in collaboration with PMAY, offering accommodation in KK Nagar Division, Ambattur, and MKB Nagar.
Board of Housing Scheme in Tamil Nadu allocates a certain percentage of properties to buyers from LIG and MIG group. These plots usually cost between 9.14 Lakh to 14.29 Lakh and a total of 506 apartments of 2BHK will be available for sale.
4. Maharashtra Housing and Area Development Authority -
MHADA offers affordable houses and land plots to eligible candidates via a lottery draw. It distributes housing units in some of the most densely populated areas in Maharashtra, namely Borivli, Wadara, Andheri, Mulund, etc.
5. Delhi Development Authority Housing Scheme –
Delhi Development Authority distributes residential properties amongst HIG, MIG, LIG, and EWS communities. The latest housing scheme was introduced in 2018, where the beneficiaries can purchase modern 1, 2 or 3 BHK apartments with multiple amenities. DDA’s schemes are also directly linked to PMAY’s credit linked scheme.
Government housing schemes like PMAY aim to create housing solutions for every Indian citizen by the end of 2022. The subsidy, benefits, and features make purchasing such homes easier. Customer-centric financial assistance further helps them pay off the home loan faster.