5 Indian Government Schemes Every Homebuyer Should Know About

Introduction:

As India continues to urbanize rapidly, affordable housing has become a pressing concern for many citizens. Recognizing this need, the Government of India has launched several schemes aimed at providing affordable housing solutions to its citizens. These schemes have helped millions of people achieve their dream of owning a home and have contributed to the overall development of the country’s housing sector. In this blog post, we will discuss five of the most important government schemes that every homebuyer in India should be aware of. Whether you are a first-time homebuyer or an experienced one, understanding these schemes can help you make informed decisions and take advantage of the benefits offered by the government. From interest subsidies to tax benefits, these schemes provide a wide range of incentives that can help you realize your dream of owning a home. So, let’s dive into the details and explore these schemes in more depth.

Pradhan Mantri Awas Yojana (PMAY)

Pradhan Mantri Awas Yojana (PMAY) is a flagship housing scheme of the Government of India, launched in June 2015. The objective of the scheme is to provide affordable housing to the urban poor and help them own a pucca house by the year 2022. The scheme has two components – Pradhan Mantri Awas Yojana (Urban) and Pradhan Mantri Awas Yojana (Gramin).

Under the PMAY (Urban) scheme, eligible beneficiaries can avail credit-linked subsidies on home loans for constructing, purchasing, or renovating their houses. The scheme targets four main categories of beneficiaries, including the economically weaker sections (EWS), the low-income group (LIG), the middle-income group-I (MIG-I), and the middle-income group-II (MIG-II). The subsidy amount ranges from 20% to 6.5% of the home loan amount, depending on the category of the beneficiary.

The PMAY (Gramin) scheme aims to provide financial assistance to rural households for the construction of pucca houses with basic amenities. The scheme provides financial assistance of up to Rs. 1.20 lakh to eligible beneficiaries. The scheme also includes provisions for convergence with other schemes for providing basic amenities like drinking water, sanitation, and electricity.

Overall, the Pradhan Mantri Awas Yojana is a significant initiative towards achieving the goal of “Housing for All” by the year 2022. The scheme provides a boost to the real estate and construction sector, generates employment opportunities, and helps in reducing the housing shortage in the country.

You can find more information about the Pradhan Mantri Awas Yojana (PMAY) on the official website of the Ministry of Housing and Urban Affairs (MoHUA) at https://pmay.gov.in/.

Credit Linked Subsidy Scheme (CLSS)

The Credit Linked Subsidy Scheme (CLSS) is a scheme under the Pradhan Mantri Awas Yojana (PMAY) that aims to provide affordable housing to the economically weaker sections (EWS), low-income groups (LIG), and middle-income groups (MIG) of society. The scheme provides interest rate subsidy on home loans taken by eligible beneficiaries to purchase, construct, or renovate their houses.

The subsidy amount under the CLSS varies depending on the income category of the beneficiary. The scheme provides interest rate subsidy of 6.5% for EWS and LIG beneficiaries with a maximum loan amount of Rs. 6 lakh, and 4% for MIG-I and MIG-II beneficiaries with a maximum loan amount of Rs. 9 lakh and Rs. 12 lakh, respectively. The subsidy is calculated on the basis of the outstanding loan amount and is provided for a maximum tenure of 20 years or the loan tenure, whichever is lower.

The scheme aims to encourage affordable housing and increase the availability of formal credit to the urban poor. It also helps in reducing the overall cost of acquiring a house and makes it more affordable for the eligible beneficiaries. The CLSS has been successful in providing financial assistance to a large number of beneficiaries and has contributed significantly towards achieving the goal of “Housing for All” by the year 2022.

You can find more information about the Credit Linked Subsidy Scheme (CLSS) on the official website of the Ministry of Housing and Urban Affairs (MoHUA) at https://pmaymis.gov.in/. This website provides comprehensive information about the Pradhan Mantri Awas Yojana (PMAY), which is the umbrella scheme under which the CLSS is implemented.

To access information specifically about the CLSS, you can click on the “CLSS” tab on the homepage of the PMAY website. This will take you to a page that provides details about the scheme, including eligibility criteria, benefits, and the application process. The website also provides links to the CLSS guidelines and other relevant documents. Additionally, the website has a frequently asked questions (FAQ) section that can help answer any queries you may have about the CLSS.

Affordable Housing Fund (AHF)

The Affordable Housing Fund (AHF) is a scheme initiated by the Government of India to promote affordable housing for the economically weaker sections (EWS) and low-income groups (LIG) of society. The scheme was launched under the Pradhan Mantri Awas Yojana (PMAY) and is implemented by the National Housing Bank (NHB).

The Affordable Housing Fund provides a long-term, concessional refinance facility to eligible housing finance companies (HFCs) for extending loans to the EWS and LIG segments for the construction and purchase of houses. The fund is expected to mobilize additional resources for affordable housing and help in reducing the cost of funds for HFCs. The scheme aims to address the issue of lack of affordable housing for the urban poor by providing a stable source of funding for housing finance companies.

The Affordable Housing Fund provides a subsidy of up to 6% on the interest rate charged by HFCs for loans up to Rs. 6 lakh to EWS and LIG segments. The subsidy is available for a maximum tenure of 15 years and is provided to the beneficiaries in the form of upfront discount on the loan amount.

Overall, the Affordable Housing Fund is a significant step towards promoting affordable housing in the country. The scheme provides a stable source of funding for HFCs, makes housing loans more affordable for the EWS and LIG segments, and contributes towards achieving the goal of “Housing for All” by the year 2022.

You can find more information about the Affordable Housing Fund (AHF) on the National Housing Bank (NHB) website at https://nhb.org.in/affordable-housing-fund/. The NHB is the implementing agency for the scheme and the website provides details about the eligibility criteria, subsidy rates, and other guidelines related to the scheme.

Smart City Mission

The Smart City Mission is an initiative of the Government of India aimed at developing 100 smart cities across the country. The objective of the mission is to promote sustainable and inclusive urban development and improve the quality of life of citizens.

The Smart City Mission is based on the principles of citizen participation, area-based development, and the use of smart solutions and technology. The mission is being implemented by the Ministry of Housing and Urban Affairs (MoHUA) in collaboration with state governments and local urban bodies.

Under the Smart City Mission, each selected city receives funding of Rs. 1,000 crore ($150 million) over a period of five years to implement various projects related to urban infrastructure, transportation, housing, and other areas. The mission also focuses on the use of technology to improve the delivery of services to citizens, such as e-governance, online payment systems, and other digital solutions.

The Smart City Mission has been successful in promoting sustainable urban development and improving the quality of life of citizens. It has also created new opportunities for investment and job creation in the country. As of 2021, over 5,000 projects have been completed or are under implementation across the selected smart cities, providing improved infrastructure and services to millions of citizens.

You can find more information about the Smart City Mission on the official website of the Ministry of Housing and Urban Affairs (MoHUA) at https://smartcities.gov.in/. The website provides detailed information about the mission, including the selection process, funding, and various initiatives undertaken by the smart cities. It also provides links to the individual websites of each of the selected smart cities, where you can find specific information about the projects and initiatives being implemented in each city.

Rajiv Awas Yojana (RAY)

Rajiv Awas Yojana (RAY) was a centrally-sponsored scheme initiated by the Government of India in 2009, which aimed to provide housing and basic infrastructure to slum dwellers and the urban poor. The scheme was named after former Indian Prime Minister Rajiv Gandhi.

The objective of the Rajiv Awas Yojana was to encourage slum-free cities in India by promoting the development of affordable housing and improving the living conditions of slum dwellers. The scheme was based on the principle of “people’s participation” and aimed to involve slum dwellers in the planning and implementation of the projects.

Under the Rajiv Awas Yojana, the central government provided financial assistance to state governments and urban local bodies for the development of housing and basic infrastructure such as water supply, sanitation, and roads in slum areas. The scheme also encouraged the use of innovative technologies and approaches for the construction of affordable housing.

In 2015, the Government of India launched the Pradhan Mantri Awas Yojana (PMAY) to replace the Rajiv Awas Yojana. The PMAY is a more comprehensive scheme aimed at providing affordable housing to all sections of society, including the economically weaker sections (EWS), low-income groups (LIG), and middle-income groups (MIG) in both rural and urban areas.

The official website for the Rajiv Awas Yojana is no longer active, as the scheme was subsumed under the Pradhan Mantri Awas Yojana (PMAY) in 2015. However, you can find information about the Rajiv Awas Yojana on the Ministry of Housing and Urban Affairs (MoHUA) website at https://mohua.gov.in/content/rajiv-awas-yojana. The website provides details about the objectives, guidelines, and achievements of the scheme.

Conclusion

In conclusion, the Indian government has launched several schemes and programs to provide affordable housing to citizens. These schemes aim to provide financial assistance, interest subsidies, and other incentives to homebuyers, making it easier for them to purchase their dream home. As a prospective homebuyer, you should research these schemes and see if you are eligible to avail of them.