0 hidden charges. 0 forex
No waiting. No paperwork. No questions.

Top Government Schemes for Home Loan

article image

Top Government Schemes for Home Loan

Table of Contents

The Indian population comprises a large number of families who live within a relatively modest income bracket. Owning a home looks next to impossible to most of them, given the skyrocketing price of homes in India. The government of India and the state governments have launched different government home loan schemes for citizens belonging to different financial groups. A govt home loan scheme saves money on expensive real estate investments and offers you a home for less than the going rate. 

You can apply for the housing scheme through certain Indian banks or home finance companies (HFCs). Check out different government housing schemes that can help you buy a home in India and get subsidies.

Top Central Government & State Government Schemes for Home Loan

To promote affordable housing in the country, the union and the state governments have introduced a number of government housing loan schemes. A few of them are discussed below.

1. Pradhan Mantri Awas Yojana (PMAY)

Housing for All by 2022 is the government of India's campaign theme under the Pradhan Mantri Awas Yojana. This government scheme for home loan subsidy was launched in order to accomplish this. PMAY is a central government scheme that provides lower-income, economically weaker-segment, and middle-income consumers with affordable housing.

The housing scheme is available for both urban and rural populations with a few distinctions. In addition to providing an amount for construction or acquisition of the property, basic amenities like electricity, gas, and water supply are provided.

3. Rajiv Awas Yojna (RAY)

The Rajiv Awas Yojana (RAY), which aims to eradicate slums from India, encourages the states and union territories to formally bring any illegal construction under a legal framework. The centre has authorised the Affordable Housing in Partnership (AHP) scheme to be a part of RAY in order to promote affordable housing under the scheme.

Additionally, the Rajiv Awas Yojana offers the help of INR 75,000 and Dwelling Units (DUs) for the economically weaker sections  (EWS) that range in size from 21 to 40 sqm. So far, the plan has cost more than INR 1,398 crores and has produced close to 46,000 homes.

3. Kerala Housing Board Housing Scheme

The Kerala State Housing Board was established in 1971 to satisfy the housing needs of the economically weaker section. The board has established a number of house financing and construction schemes to date.

The following are a few of the board's major housing initiatives.

a. Innovative Housing Scheme

Residential apartments will be built on public property as part of the housing scheme for displaced workers who are from the economically weaker section of society and live in urban areas. As part of the government housing loan scheme, 212 flats have been built so far on the government-owned property at Poojappura and Thrikkakara.

b. M.N. Laksham Veedu Punarnirmana Padhathi

The plan allows for the conversion of outdated twin houses into single units and the reconstruction of single homes. Additionally, the government will provide you with money to rebuild your house. Kerala State Housing Board contributes 50% of the subsidy amount, with the Local Self Government Departments covering the remaining 50%.

c. Suraksha Housing Scheme

Both in urban and rural areas, those who belong to the Economically Weaker Section (EWS) can receive financial aid for self-building a home. They must own at least two cents of land. To help individuals with the building, the plan offers the option to team up with nonprofit organisations and volunteer organisations. 
The government offers a capital subsidy of INR 9,000 per house, the beneficiary is required to make a voluntary INR 2,000 payment, and there is an INR 19,000 construction loan for an INR 30,000 project. If nonprofit groups are involved in the plan, they will either cover the entire loan amount or construct the building all the way to the roof.

d. New Suraksha Housing Scheme

In this plan, a house with a plinth area of 30 square metres is assumed to cost INR 1 lakh to build, with a current loan balance of INR 30,000. On top of the loan amount, you will receive a government subsidy of INR 25,000 rather than INR 9,000.

4. Delhi Development Authority (DDA) Housing Scheme

The Delhi citizens are provided housing through the Delhi Development Authority (DDA) Housing Scheme. This govt home loan scheme is connected to the PMAY Credit Linked Subsidy Program. The new DDA scheme, which launched in March 2019, provides 5,000 flats in South Delhi's Vasant Kunj, Rohini sector-34, and Kalkaji. You must be an Indian citizen over 18 years and fall under the EWS, LIG, MIG, or HIG category in order to be eligible for the government scheme for home loan subsidy.

5. Maharashtra Housing and Area Development Authority Scheme (MHADA)

MHADA conducts a housing scheme to make housing more accessible to everyone. A lottery system is used to run the scheme. Based on the outcomes of a random draw, a specific number of homes are set aside for the MHADA system, and loans are distributed to purchasers who fall into various income levels. These residences, which range in price from INR 15.35 lakh to INR 1.42 crore, are offered in neighbourhoods including Ghatkopar, Borivali, Mulund, Goregaon, Mankhurd, and Vikhroli.

Although everyone is eligible for the MHADA housing scheme, a specific number of homes are set aside for members of the Low Income Group (LIG), Economically Weaker Section (EWS), and Middle Income Group (MIG).

6.Tamil Nadu Housing Board Scheme (TNHB)

The Tamil Nadu government manages the TNHB housing scheme to give state people access to inexpensive housing. Residential units and business units are the two categories into which the properties under this scheme are divided. The scheme includes caste- and occupation-based reservations. People with disabilities are also given a reservation under the plan.

7. NTR Urban Housing Scheme

The Nandamuri Taraka Rama Rao (NTR) Housing Plan was launched in 2016 to assist Andhra Pradesh's poor population in acquiring inexpensive homes. Under the Pradhan Mantri Awas Yojana (PMAY) and NTR (Urban) Nagar schemes, the government of Andhra Pradesh distributed 15,091 homes in 2018–19.

The NTR Urban Housing project is open to all Andhra Pradesh residents who are not recipients of a government housing scheme. To apply for the NTR housing scheme, you must have a BPL or white ration card. You would receive a subsidy of INR 2.5 lakh under this scheme. Additionally, the consumer receives an additional INR 50,000 if they are SC or ST beneficiaries.

8. Haryana Housing Board Scheme

The state government board has prioritised housing development and allotment 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 Haryana Housing Board is in charge of establishing construction divisions, design cells, and other essential committees that oversee the execution of the various activities related to affordable housing plans. A new government housing scheme called the Haryana Board Housing Scheme offers freehold residential and commercial properties.


In order to receive the best government housing loan scheme, apply for any of the government policies online along with necessary documents like Adhaar Card copy, PAN Card copy, etc. However, if you don’t fall in these ca tegories and are still looking for a loan to get a house, then you can check out the Fi home loan calculator which will give you a clear picture of whether or not you can take a loan.


1. Are women eligible for housing schemes in India?

Yes, women are eligible for housing schemes in India. Schemes like PMAY makes it mandatory for women to be an owner or co-owner of the scheme.

2. What is an affordable housing scheme in India?

In general, affordable housing schemes seek to provide more inexpensive housing options for those who cannot afford to buy or rent at market prices.

Time to switch to Fi. Smart banking and only that.
Related Posts
Get the Fi app