In India, buying a new home is considered one of the biggest milestones in life. However, investing in a new property requires a significant investment and sometimes it can cause financial constraints. This is where the different government home loan schemes play a vital role.
These schemes are specially introduced to help people who want to own a home with affordable housing loans. Nowadays, many home lending companies have extended government schemes with subsidised home loan interest rates and flexible repayment terms. If you are looking to purchase a home and need financial support, you can take benefit of the affordable housing loan schemes and make your dream of being a homeowner come true.
Rajiv Awas Yojana (RAY)
The Rajiv Awas Yojana is one of the most popular government schemes for home loans in India. It is a central government of India initiative that was introduced in July 2009. The primary objective of this affordable housing scheme was to help the inhabitants of the slums in the urban areas across India rehabilitate and provide them with a durable and permanent housing structures.
At the core of RAY’s operation lies the development of slums in India and the laying out of a holistic and long-term housing solution for slum dwellers. Some of the other objectives of Rajiv Awas Yojana Include –
- Eliminating the slums from India, and providing the inhabitants in these slum communities a permanent and affordable housing units.
- Provide all the basic amenities in the houses built for the urban dwellers
- Interact with the community members of the slums and engage in the planning and implementation process of building the affordable homes.
Pradhan Mantri Awas Yojana (PMAY)
The PMAY house loan government scheme started in June 2015 to provide an affordable housing unit for all Indian citizens. This initiative was an integral part of the ‘Housing for All’ scheme, which was the government of India’s largest housing scheme to develop new housing units in urban areas across India, and help improve the living conditions of the people, especially those who live in slums and shanties.
Another significant part of the PMAY scheme was to provide to a credit-linked subsidy to the home loan borrowers in India, especially those who belonged to the low and middle income groups and encourage them to be a homeowner.
Some of the most prominent objectives of this scheme are:
- Provide an affordable and permanent housing unit for people living in the slums in the urban region
- Improve the quality of life of the people through the integration of environmental factors while building homes
Suraksha Housing Scheme (SHS)
This government house scheme is launched by the state government of Kerala mainly with an aim to construction new housing units for the people who lost their houses for their houses were affected during natural calamities like landslides or floods.
Through this housing scheme, the Kerala Government aims to demonstrate its willingness and readiness to provide safety coverage for the people who are affected by natural disasters and also provide them with a robust shelter while indulging in the recovery process.
Apart from providing new housing units to the people, under the Suraksha Housing Scheme, the Kerala Government also aims to provide low-interest housing loans to recommended beneficiaries, allowing them to reconstruct their homes. Through these home loans, the government of Kerala offers a chance to the need and the affected victim of the catastrophe to stand on their feet again.
Delhi Development Authority Housing Scheme (DDAHS)
As the name says it all, the Delhi Development Authority Housing Scheme is a housing scheme designed by the Delhi Development Authority, one of the most significant organisation in Delhi. It is responsible for formulating policies and executing housing schemes in the capital city of India.
The Delhi Development Authority Housing Scheme is a housing initiative that is specifically meant for the large populace living in Delhi. It encourages them to avail the benefits of the facility by offering them accommodation units in different categories like LIG (low income group), MIG (middle income group) and HIG (high income group).
It also allocates the housing units through lottery system to ensure that there is complete transparency in the house allocation process. Also, through the Delhi Development Authority Housing Scheme, DDA aims to provide low interest home loans to people from the low income groups and encourage them to purchase a home in Urban Delhi.
To extend the home loan facility, DDA has collaborated with many home loan lending companies and ensure that the rightful beneficiaries of the loan get the best deal on home loans.
Maharashtra Housing and Area Development Authority (MHADA)
Just like the Delhi Development Authority works to provide housing units in Delhi, the Maharashtra Housing and Area Development Authority, better known by its acronym, MHADA, is responsible for bridging the massive gap between the demand and supply for housing units in the state of Maharashtra, especially within the limits of larger cities.
The authority is specially known for implementing the state’s project of building and implementing economical housing units for the low-income groups residing in the state. It also offers a wide range of housing programs for different sectors of the society.
MHADA provides housing units to the eligible beneficiaries through a lottery system, where people can apply for the housing units and get the possession of the same at a very nominal prices, which is much lower than the market value. In addition, MHADA provides housing loan facility at lower interest rates and with flexible repayment tenure for the first-time home buyers in the state.
Final Word
There are many government schemes for affordable home loans in India that you can take benefit of to own a home in India. While there are many such government housing loan schemes, to get the funds through these schemes, you must qualify for the same. And the eligibility criteria can be quite strict.