Affordable Housing Schemes

Date: 8-January,2019Last Updated: 26-September,2022
+A   -A

Though 'Affordable Housing in India' has been a term which is quite frequented by the populace now and again, it has seldom been used in its right sense. Most people associate the literal meaning to the actual usage formulated by the government and the financial experts. Thus the term Affordable Housing has a different meaning when used by the two sectors.

What is Affordable Housing?

The term refers to the low-cost shelters or housing units that are affordable by the low-income groups of the society whose income falls below the average household income. These units are usually developed by Governmental agencies that are funded under government-sponsored schemes.

However, the term when used by private developers means that the cost of their units falls under the current market prices.

To know more about the affordable range of apartments and other housing projects, Check out the Best Affordable Housing Projects in Bangalore 2020

Types of affordable housing schemes set by both the government as well as the private sector :

  • Governmental Sector

As the population of India continues to thrive against the odds, the lack of shelters for the section below the nominal classes is a serious issue that will drastically affect the entire economic environment of the nation.

Governmental Schemes are often incorporated by the state housing boards of the individual states and metros like DDA, MHADA, and BDA Housing schemes.

The World Bank through its Low Income Housing Finance (LIHF) project which was implemented across 17 states in India catered over 15,000 of the poor settled in Urban areas.

Types of Affordable Housing Schemes in India

1. Pradhan Mantri Awas Yojana

The Pradhan Mantri Awas Yojana is a flagship housing and rehabilitation scheme from the Government of India. In 2015 Prime Minister Narendra Modi launched the Pradhan Mantri Awas Yojana proclaiming housing for all by 2022, in which roughly 20 million houses will be constructed for the homeless. The scheme is further divided into two components depending on urban and rural regions of the country.

2. Pradhan Mantri Awas Yojana Urban (PMAY U)

This scheme mainly caters to the urban areas of the country. It caters to bring affordable housing in India especially for the poor who has settled in Metro cities as well as the slum-dwellers. The female head of the family must be the owner or the co-owner of the pucca houses built under the project. There are 4 base options to choose from this scheme-

  • "In Situ" Slum Redevelopment - Central Assistance of 1 lakh per house for eligible slum dwellers along with land acquisition from private partners.
  • Credit Linked Subsidy Scheme- Assistance up to 2.67 lakh and interest subsidies of 6.5 %, 4% and 3% for amounts of Rs 6, 9 or 12 Lakhs for economically weaker sections(EWS), Low Income Groups(LIG), Middle Income Groups ( MIG) I & (MIG) II.
  • Affordable Housing in Partnership- up to 1.5 Lakh per EWS house in the projects where at least 35% of the houses are reserved for the EWS category and the project has at least 250 houses.
  • Beneficiary-led individual house construction/enhancements (BLC)- EWS can have assistance up to 1.5 lakhs to develop a new house or enhance the existing one if they had not availed any other benefits under the scheme.

3. Pradhan Mantri Awas Yojana Rural (PMAY-R)

Pradhan Mantri Awas Yojana Rural is devoted to the rural regions in the country except for Delhi and Chandigarh. Central Assistance up to 1.2 lakhs in plain areas and 1.3 lakhs for hilly areas. House sizes as of now are to be increased from 20 sqm to 25 sqm and every house will have a toilet. The beneficiary will get 90 days of unskilled labour from MGNREGA.

How to get affordable housing schemes in India through Pradhan Mantri Awas Yojana ?

The eligibility criteria to avail PMAY is as follows-

  • The beneficiary should be a family comprising of parents (husband & wife) and unmarried children.
  • They should not own a pucca house, however, beneficiaries who possess a house under 21 sqm are also considered.
  • An adult earning member irrespective of marital status are also eligible
  • EWS category of beneficiaries is eligible for Assistance in all four verticals of the
  • Missions whereas LIG/MIG category is eligible under only CLSS component of the Mission

The sections who can avail Pradhan Mantri Awas Yojana are as follows -

1. EWS (Economically Weaker Section) - Families whose annual income is lesser than Rupees 3 lakh.
2. LIG ( Low Income Group) - Families whose annual income is between Rupees 3 and 6 Lakhs.
3. MIG - (Middle Income Group)-
a) MIG I -Families whose annual income falls between Rupees 6 and 12 Lakhs.
b) MIG II- Families whose annual income falls between Rupees 12 and 18 Lakhs.
4. Scheduled Castes, Tribes and Other Backward Classes (OBCs).

  • Private Sector

The private realtors and developers are also attracted to the league of building affordable homes. Apart from social responsibility, they too have realized that only by addressing the housing needs of the middle class and lower-income classes can the real estate industry thrive.

Affordable houses or apartments are usually compact compared to the mainstream projects and won't feature the same kind of amenities the later offers. The private sector usually caters to the same in Indian cities rather than the suburbs or the rural areas. But South and East Bangalore have witnessed a rise in the field of affordable housing because of the cheaper land prices and availability of plots for development.

The private sector developers are allowed to build affordable homes for the MIG and the LIG classes at reasonable rates. Along with easier housing finance options and the Pradhan Mantri Awas Yojana in place, this proves to lighten the load for the median income groups. As for the developers, this is a huge boost to the real estate sector.

Also, the Developers of Affordable Housing have access to cheaper sources of funding including external commercial borrowings (ECB’s). Developers will also get an extension of a year to pay tax on notional rental income on completed but unsold units. The tenure for long-term capital gains for affordable housing schemes has been revised from 3 to 2 years. However, the deadline for project completion is increased to 5 years from the current 3 years.

The above mentioned are the types of affordable housing schemes in India which are undertaken by both the public and private sector. Affordable Housing is one of the major factors that will influence the real estate sector as it affects both the private and public sectors. The current trends sound comforting to a large part of our citizens who are homeless, however, "red tape" often enters the scene as the villain. The government should also ensure that the beneficiaries are benefited from this endeavor and affordable housing in India should no longer be a distant dream.

Did we help ?

Post Response



Latest Blogs

Why Read Real Estate Blogs?

Well, we are aware that real estate has never exactly been one of those binge-worthy blog categories. It has neither been the kind of topic you could not get enough of, nor is it half as juicy as celebrity gossip.

However, in India, real estate blogs are starting to get clicks and likes, and it has become one of the trending topics. People worldwide are beginning to realize how real estate as an industry affects the economy and how important it is to understand housing trends to enhance their lifestyle.!

The relevance of informative Indian blogs on real estate and finance are at an all-time high now. The youngsters are bidding big on investment options, and brackets such as realty have proved to be highly dependable compared to others.

The Millennials are flooding in to invest in apartments, plots, and villas, and the earliest members of the Gen-Zs' entering the workforce and looking forward to having their own homes. This has only fuelled the growth of digital real estate blogs to keep up with the tech-savvy generations.

Also, the real estate sector has been proving time and again, how reliable an investment choice it is. So, learning about the sector is the smart way to climb up the ranks, and where else can you learn so much except from real estate Blogs! Real estate is the second-largest contributor to the country's GDP; hence there is no doubt that it affects every one of us, whether we see a future in the Real Estate Industry or not. After all, we all live in our homes, and housing is a significant part of the industry.

What sets India's favorite Blog Posts apart?

We know exactly what you need to know and what you like. We know you want to feel engaged and entertained, and at the same time, hot housing news should be fed to you! We have turned the tables, grab a spoon, and start digging!

And Voilà! We present to you the most Interesting and Informative blogs!

As our name implies, we are not limited to realty alone, granted we do Specialize in it. We are all about Homes, and we are in love with Tech and Innovation! Naturally, our blogs cover a myriad of topics related to real estate and housing from Luxury, Lifestyle, Home Decor, Vastu, Real Estate News, Reviews, Tech & much more!

We make every one of our real estate blogs as interesting as it can get and attach with absolutely unique and accurate images, to provide you a better understanding. Not only do we cover a wide range of topics, but we also cover them at the right time. We update you on our socials such as Facebook, Instagram, Linkedin, Pinterest, and Twitter on every trending topic, so you are never miss anything and worry about being left behind!

However, we never go out of hand with our Indian real estate blogs that our beloved Readers have come to love over the years.

What is the Importance of Real Estate Blogs?

Everything in India is a state of constant flux; maybe that's why we Indians became one of the most adaptable and cosmopolitan people in the world!

If the nation's elements are shifting its focus, how can real estate be any different? Indian Real Estate Sector is perhaps one of the most dynamic ones in the entire world. Since the Real Estate in India is yet to be organized entirely, the variations in one segment affect another in ways difficult to comprehend.

The complexity and nuances can be understood only by reading about what is going on in the sector. Like we mentioned above, it affects every one of us. Hence it is essential to keep up to date.

With its ever-changing shifts and tides, it's virtually impossible to keep track of the sector's latest trends and sink our anchor deep. That's where we come in! We are just one google search away!

We also try to solve every home-related query through our Indian real estate blogs. And that's not all. We provide you insights on technologies that make the modern taste and rate of development possible, detailed analysis on real estate projects, insights on loans and taxes, advice on the home buying process, and articles on health and fitness. We provide you information about the trending topics in the Indian real estate industry.

We also host video podcasts named Expert's Voices, where we discuss with the leading players in the industry about market scenarios, offers, anything and everything related to real estate.

In addition, we host Real Estate News so you can stay updated on the sporadic events that happen around the country concerning Indian Real Estate. We also make short and easy to understand real estate video blogs.

We have got so many topics to read about that even if you have years of experience or are just curious and googling to get some ideas about Indian real estate blogs, you will find the best ones here.

At, we strive to provide you only the best real estate blogs. Our blogs are always entertaining; even the dullest subject we touch upon, we try to make it engaging. We make sure the best of the best is are the only standard we keep ourselves at when it comes to our service or our Indian real estate blogs.

Our team is made of a dynamic group of keen hands-on expert researchers who work tirelessly along with passionate and knowledgeable content writers to bring to your fingertips the world of real estate.

On every one of our real estate blogs, we research vigorously, write creatively, carefully compile, and thoughtfully curate the best real estate blogs, especially for you, from India's best content writers and contributors.