Want a dream home? These govt schemes make it possible
What's the story
The government of India has launched numerous schemes to ensure affordable housing for its citizens.
These programs aim to offer financial support by providing subsidized interest rates on home loans.
This article explores the key government-subsidized housing loan schemes available in India, with the goal of demystifying how they operate and who is eligible to benefit from them.
PMAY
Pradhan Mantri Awas Yojana (PMAY)
The Pradhan Mantri Awas Yojana is a flagship initiative launched by the Indian government to provide affordable housing to the urban poor by 2022.
Under this scheme, beneficiaries can enjoy interest subsidies of up to 6.5% on home loans for a tenure of up to 20 years.
The subsidy is provided based on the income category of the applicant, facilitating easier home ownership for lower-income groups.
CLSS
Credit Linked Subsidy Scheme (CLSS)
A major part of PMAY, the Credit Linked Subsidy Scheme provides an upfront subsidy on home loan interest rates to eligible beneficiaries from Low Income Groups (LIG), Middle Income Groups (MIG), and Economically Weaker Sections (EWS).
The interest subsidy, ranging from 3% to 6.5%, greatly alleviates the EMI burden on borrowers by reducing the effective home loan interest rate.
HFA
Housing for all by 2022
Housing For All By 2022 is a visionary initiative that strives to eliminate slums in urban areas by ensuring the provision of pucca houses equipped with essential amenities to slum inhabitants and urban poor families.
This scheme not only concentrates on constructing new houses but also provides financial aid to facilitate the transformation of existing kutcha houses into pucca houses.
Interest subvention
Interest Subvention Scheme
This scheme provides an interest subsidy of up to ₹2 lakh on housing loans for economically weaker sections and low-income groups.
It reduces the cost of borrowing for house construction or renovation, motivating more applications from these income groups.
By availing these subsidized loans, eligible individuals can attain home ownership without the strain of high financial costs.