Indian Real Estate

LIG Housing in India


10, January 2026

Food, Clothes & Housing...

The three essentials of every individual. But in a nation like India, with a billion-strong populace, the concept of owning a house is still a distant dream.

With the rise of mega smart cities and tier 2 & 3 cities competing with each other for various social infrastructure and developments, the cities are becoming overcrowded and too expensive.

As residential properties spring up like weeds in urban areas, the economically challenged are not able to afford homes. Thus it becomes inevitable that measures are taken in to aid them in getting a roof over their heads. This is where the Government's LIG Housing Schemes come into the picture.

What is the meaning of LIG?

LIG, or Low Income Group, is the economic class of households that has an annual gross income between Rs 3 Lakh - Rs 6 Lakhs.

There are multiple types of LIG Housing in India. The major one is LIG Flats in the urban areas.

What are LIG Flats?

A LIG flat is a flat that caters to the preferences and needs of lower-income group home buyers. LIG Flats are provided to the low-income group and typically have 60 square meters of carpet area within a multi-storey building, with features such as electricity, toilets, steady water supply, etc.

These flats often come in 1 BHK configuration and have well-ventilated rooms. In some rare cases, there will be two bathrooms or even a mini balcony.

GR Sitara - Hosa Road Bangalore

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Major Schemes for LIG Flats in India

LIG Flats is now a popular measure facilitating urban housing for poor and lower-middle-class families. Here are some of the LIG housing schemes in India:

  • Rajiv Awas Yojana(RAY)

  • Delhi Development Authority LIG Flats Scheme

  • MHADA Lottery Scheme

  • CIDCO Affordable Housing Scheme

  • West Bengal Housing Board Scheme

Let's explore them in detail!

1. Pradhan Mantri Awas Yojana(PMAY):

PMAY is one of the premium schemes that help in the construction and distribution of urban housing for the LIG and EWS groups. The scheme was launched in 2015 with an aim to build over 2 lakh pucca houses by 2024.

PMAY is further divided into PMAY - U or urban, focusing on cities, and PMAY - G focusing on rural regions. LIG flats are provided under the scheme of CLSS or Credit Linked Subsidy Scheme at the rate of 6.50%.

2. Rajiv Awas Yojana(RAY):

Named after the former prime minister Rajiv Gandhi, this scheme was started in 2013-2014 and focused on making India completely slum-free. Thousands of housing units for both LIG and EWS beneficiaries were constructed during the tenure of this scheme.

3. Delhi Development Authority LIG Flats Scheme:

Particularly focused on the poor in Delhi and NCR regions, this scheme had built LIG Flats in Siraspur with well-ventilated units with excellent floor plans.

4. MHADA Lottery Scheme:

The Maharashtra Housing & Area Development Authority(MHADA) has introduced a new housing scheme, namely, the MHADA Lottery Scheme. With this housing scheme option, the Lower Income Group(LIG) home buyer can have the benefits of accruing home loans and other benefits for first time home buyers.

5. Tamil Nadu Housing Board Scheme:

The Tamil Nadu Housing Board(TNHB) has come up with a housing scheme for the lower income groups in Tamil Nadu, the Tamil Nadu Housing Board Scheme. People who seeking a LIG flat in Tamil Nadu have to be authorized under the TNHB scheme to acquire a flat.

6. CIDCO Affordable Housing Scheme:

The City and Industrial Development Corporation(CIDCO) Maharashtra has also established a lottery scheme named, COIDCO Affordable Housing Scheme, offering housing options for the LIG home buyers in Maharashtra.

7. West Bengal Housing Board Scheme:

The West Bengal Housing Board has introduced two housing schemes - Gitanjali and Nijashree affordable housing schemes. Through this scheme, the homeless and the LIG are offered free and affordable pucca houses and LIG flats. The eligibility for receiving LIG flats through this scheme is that the yearly family income should not exceed 15,000.

So, there you go!

These are all about the LIG housing in India and some of the major LIG Flats-based housing schemes in India. You can also explore schemes for MIG and HIG flats in India!

FAQs:

Q. Who is eligible for LIG housing?

A. Individuals and families classified as "Low Income Groups" in India are the objectives of LIG housing. This often refers to households having an annual income range between Rs. 3 lakh and Rs. 6 lakh. However, it is crucial to remember that specific income eligibility criteria may differ based on the plan and state rules.

Q. What are the types of LIG housing available?

A. LIG housing schemes come in two types: apartments and plots. The most popular alternative is an apartment in a multi-story building, which provides a small and inexpensive living area. These apartments typically range from 50 to 60 square meters and offer a simple yet functional living space. For individuals seeking greater flexibility, certain LIG schemes may provide plots of land on which beneficiaries can build their own single-unit houses.

Q. What documents are required for application?

A. The documentation required for applying to LIG housing schemes may differ slightly depending on the program. However, some essential files are normally required for most programs. These usually contain proof of income, identification, and residency. Additionally, some schemes may require a caste certificate if applicable.

Q. Is there an income limit for selling an LIG house?

A. While you may eventually sell your LIG home, some schemes include a waiting period after purchase to prevent quick resale for profit. Additionally, resale profit margin restrictions may apply to guarantee that the home remains affordable for future LIG buyers.

Q. What are the eligibility criteria for loan assistance?

A. While LIG housing schemes offer attractive subsidized rates, securing loan assistance involves meeting specific criteria set by participating banks. These criteria typically focus on your financial stability, including your annual income, credit score, and the property's value. For a comprehensive picture of loan eligibility, it's recommended to directly contact the banks involved in the LIG scheme you're interested in.

Related Blogs:

Government schemes FAQ

Major Housing Schemes in Karnataka

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