Popular Housing Schemes in India By Central Government

Home Improvement

Over the past few years, the affordable housing segment in India has grown significantly, thanks to the efforts of the Indian government to push the segment as one of the primary drivers of the economy. Read on to know more about the popular affordable housing schemes initiated by the Central Government of India.

With the demand for the affordable housing units rising in India, the Central Government of India, over the past few years introduced many affordable housing schemes. The main objective of these scheme is to provide a pucca housing unit for the people from the economically weaker section and provide financial assistance in the form of home loan subsidy. The government has an ambitious plan to provide housing units for all Indians by 2022 under the ‘Housing for All’ plan and is thus making efforts to boost the construction of affordable housing units across different cities in the country.

Some of the popular housing schemes initiated by the Central government are:


The PMAY (U) or the Pradhan Mantri Awas Yojana (Urban) is one of the most talked-about government schemes. Launched in 2015, the scheme aims to provide houses for the homeless by 2022. Under the scheme the central government is offering financial assistance to all the state governments and the union territories to collaborate with the local builders and develop affordable houses. Also, under the CLSS (Credit-Linked Subsidy Scheme), which is a part of the PMAY, the government aims to provide financial assistance to the aspiring first-time home buyers. As per the scheme mandate the home-buyers will get a subsidy on their home loan interest up to 4%.

Another significant feature of the PMAY scheme is that the new homes are build using eco-friendly techniques to promote sustainable development. Also, under the scheme, all the homes are mandated to have electricity supply, clean drinking water and sanitation. Also, with a view to promote home ownership among women, the scheme mandates that the home purchased with the PMAY benefit must be registered under a woman’s name and in case of joint ownership, one of the owners must mandatorily be a woman.

Pradhan Mantri Gramin Awas Yojana

When the Pradhan Mantri Gramin Awas Yojana was first introduced in India, it was known as the Indira Awas Yojana. Under the scheme, the government aims to provide pucca house that has all the basic amenities to the homeless. To help develop the homes, the government provides financial assistance to the state government in the ratio of 60:40 in the plain areas and in the ratio of 90:10 in the hilly region. Also, as per the scheme mandate, the government will provide financial assistance up to a maximum limit of 1.2 lakhs INR to help the destitute, people living on alms, scavengers, tribal groups and bonded labours to get a permanent shelter.

To ensure that the beneficiaries are chosen accurately, modern technology like space technology and information communicated are used. Also, under the scheme, all the beneficiaries will be provided clean fuel for cooking purposes.

Rajiv Awas Yojana

The Rajiv Awas Yojana, which was launched in 2009 aims to make India a slum-free India and encourage all the state governments to bring the illegal constructions under a formal system. To increase the affordable housing units in the country, under the scheme the Central Government of India has approved the Affordable Housing in Partnership (AHP) scheme to part of the Rajiv Awas Yojana. Under the scheme, the government provides 75,000 INR to the beneficiaries from the EWS (Economically Weaker Section) and build dwelling units up to the size of 40 sqm.

With the government aiming to provide housing for all, these housing schemes has gained great significance.