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Top Government Schemes for Home Loan

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October 11, 2022


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Do you dream of owning a home soon? Thanks to various government housing loan schemes in India — your dream can become a reality! With soaring real estate prices, these schemes provide a lifeline to those from different socio-economic backgrounds. This blog explores the top government schemes promoting affordable housing, from the Pradhan Mantri Awas Yojana (PMAY) at the national level to state-specific initiatives such as the Kerala Housing Board Scheme. Discover how these schemes offer subsidies, financial assistance, etc.

Central Government Schemes For Home Loan

Pradhan Mantri Awas Yojana (PMAY)

'Housing for All' is the Pradhan Mantri Awas Yojana campaign theme. It's a government scheme for home loan subsidies to accomplish this for rural & urban populations. PMAY provides affordable housing for lower-income, economically weaker-segment, and middle-income consumers.

In addition to providing an amount — as the scheme has a budget up to ₹32k crore — for the construction or acquisition of the property, basic amenities like electricity, gas, and water supply are provided.

Rajiv Awas Yojna (RAY)

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

Additionally, the Rajiv Awas Yojana offers ₹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 ₹1,398 crores and has produced close to 46,000 homes.

State Government Schemes for Home Loan

Kerala Housing Board Housing Scheme

Established in 1971, to meet the housing needs of the economically weaker sections, the board has many house financing and construction schemes:

Innovative Housing Scheme

Residential apartments will be built on public property for displaced workers from economically weaker social sections living in urban areas.

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The plan allows for the conversion of outdated twin houses into single units and the reconstruction of single homes. The government will also provide a subsidy amount of up to 50% of the cash needed to rebuild your house.

Suraksha Housing Scheme

In urban and rural areas, those who belong to the Economically Weaker Section (EWS) can receive financial aid for self-building a home (if they own at least two cents of land).

New Suraksha Housing Scheme

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

Delhi Development Authority Housing Scheme

Only citizens of Delhi are provided housing through the Delhi Development Authority (DDA) Housing Scheme. This home loan scheme is connected to the PMAY Credit Linked Subsidy Program. The 2019 version of the DDA scheme provides 10k flats across Delhi (Vasant Kunj, Rohini sector-34, and Kalkaji). You must be over 18 years & fall under the EWS, LIG, MIG, or HIG category to be eligible for the government scheme for home loan subsidy.

Maharashtra Housing & Area Development Authority Scheme (MHADA)

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 get distributed to purchasers who fall into various income levels. These residences, which range in price from ₹15.35 lakh to ₹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).

Tamil Nadu Housing Board Scheme (TNHB)

The Tamil Nadu government manages the TNHB housing scheme to give state people access to inexpensive housing. Residential and business units are the two categories into which the properties are under this scheme. A set of these homes have also been assigned to the state's police force. People with disabilities are also given a reservation under the plan.

NTR Urban Housing Scheme

The Nandamuri Taraka Rama Rao (NTR) Housing Plan was launched to assist Andhra Pradesh's poor population in acquiring inexpensive homes. You must have a BPL or white ration card to apply for the NTR housing scheme. You would receive a subsidy of ₹2.5 lakh under this scheme. Under the Pradhan Mantri Awas Yojana (PMAY) and NTR (Urban) Nagar schemes, the government of Andhra Pradesh distributed 15,091 homes in 2018–19.

Haryana Housing Board Scheme

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, especially for the socially and economically poorer segments of society, since the establishment of the (Act No. 20 of 1971).


The government of India, along with state governments, has launched various housing loan schemes to address the affordability challenges faced by citizens. These initiatives, such as PMAY, RAY, and state-specific schemes like the Kerala Housing Board Scheme, aim to provide subsidies, financial aid, and housing options to the economically weaker sections. By availing yourself of these schemes, you can turn your dream of owning a home into reality.

Frequently Asked Questions

1. Are women eligible for housing schemes in India?

Yes, women are eligible for housing schemes in India. Schemes like PMAY make 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.

3. What is the central government scheme for home construction?

The central government scheme for new house construction is the Pradhan Mantri Awas Yojana (PMAY) or the Prime Minister's Housing Scheme.

4. Is Pradhan Mantri Awas Yojana available now?

Yes, the Pradhan Mantri Awas Yojana (PMAY) is currently available. It is an ongoing initiative by the Indian government aimed at providing affordable housing to eligible beneficiaries.

5. How do I get a government scheme for home (PMAY)?

To avail the benefits of the Pradhan Mantri Awas Yojana (PMAY):

  1. Check eligibility.
  2. Apply online or offline.
  3. Submit required documents.
  4. Application verification.
  5. Approval and allotment.
  6. Receive loan subsidy (if applicable).Stay updated with government guidelines for specific details.


Investment and securities are subject to market risks. Please read all the related documents carefully before investing. The contents of this article are for informational purposes only, and not to be taken as a recommendation to buy or sell securities, mutual funds, or any other financial products.
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