Government Schemes to Help the Average Indian Homeowner in 2024

You might not have read this in the headlines, but recently, 1.73 lakh residential houses were sold from January to June 2024. While this is great news, it shows you one side of the picture. 

Be it increasing inflation rates or soaring real estate prices, buying a house is not easy for an average Indian. That’s why you must take a smart approach and turn your dream home into a reality with smart financial decisions. There’s nothing to worry about, as government schemes will provide the right financial assistance to make your dream a reality.       

However, the primary question is which government scheme will help you as an Indian homeowner in 2024. This blog will explore some of these schemes for you, so read it until the end!   

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1. Pradhan Mantri Awas Yojana (PMAY)

The Pradhan Mantri Awas Yojana (PMAY) has been around since 2015. The main aim of this scheme revolves around providing everyone with affordable housing. The scheme has two primary components: PMAY-Rural deals with rural housing, while PMAY-Urban deals with urban areas by 2022. 

However, the government extended the scheme with the first cabinet decision from the Narendra Modi 3.0 cabinet. They approved assistance from the government to construct 3 crore more rural and urban houses under the same scheme.  

PMAY is about providing financial assistance for housing to three primary groups in modern Indian society. These groups include the low-income groups, economically weaker sections, and middle-income groups.        

What are the Eligibility Criteria for PMAY?

The government cannot afford to be handing out scheme benefits to everyone. This is why we have some predetermined eligibility criteria for the PMAY to ensure the benefit reaches the right people. It means you must meet the following criteria to access the benefits of this scheme:

• Annual income: The first criterion deals with your income, and you must prove that your annual household income falls into the MIG, LIG, or EWS categories. 

• Location: The second criterion requires that your house’s location is in any statutory town recognized by the government. 

• First-Time Homebuyer: The final and very important criteria require you to be a first-time homeowner. This means neither you nor your family should not own any pucca house in India.            

2. Pradan Mantri Gramin Awaas Yojana (PMGAY)

Then we have the Pradhan Mantri Gramin Awaas Yojana (PGAY) to make pucca housing more accessible in rural areas. Few might remember the scheme as the Indira Awaas Yojana since it has been renamed. The only catch here is the benefits of these schemes are limited only to rural areas. But even so, this has helped many secure a roof over their heads. 

People who meet all the criteria for this scheme can get financial assistance to construct and upgrade their houses. After you apply, the government will use the data from the 

Socio-Economic Caste Census (SECC) to determine your eligibility.      

Upon identification, the government will give you a financial grant of ₹1.2 lakh to construct your house in plain areas. But if you live in the hilly regions of the country, you will get ₹1.3 lakh to construct or upgrade your house.   

Another great thing about this scheme is the additional benefits that come with it. You will get additional support to construct toilets under the Swachh Bharat Mission. Then you will also get the benefits of the Ujjwala Yojana, which gives you a free cooking gas connection.    

3. Housing Schemes for Salaried and Middle-Income Homebuyers 

Apart from uplifting the poorer sections of society, the government has also devised schemes to benefit salaried and middle-income Indians. So, if you fit into this category, you must check the following incentives out:  

• Waivers on Registration Fee and Stamp Duty: A few state governments provide either complete or partial waivers. The condition here generally requires you to be from a middle-income group and a first-time home buyer. 

• Tax Deduction: The next incentive here is deductions on the income tax you pay. You can claim a deduction of 2 lakh per annum for self-occupied properties. You can also claim some benefits on the home loan interest as per the Income Tax Act.    

• GST Reduction: The government has lowered the GST charged on under-construction properties to make houses more affordable. If your under-construction property is part of any affordable housing project, you only need to pay a GST of 1%.   

State-Level Subsidies for Average Indian Homeowners

Apart from the Union Government, even certain State Governments are trying to uplift the average Indian homeowner with some subsidies. Some of the most popular of these schemes include:   

• Tamil Nadu Housing Board Schemes: This scheme was first started in 1961 with a goal to make housing affordable for the state’s urban population. This also has many sub-schemes under it that make the scheme more accessible across different regions.

• NTR Housing Scheme: The NTR Housing Scheme was started in 2016 in the state of Andhra Pradesh. The scheme aims to make housing affordable for the state’s residents as long as the applicant has a BPL card and does not own any property. 

• Delhi Development Authority Housing Scheme: This is a relatively new state-level housing scheme that was introduced in late December 2021. The scheme offers more than 18,000 flats at discounted prices in localities like Rohini, Dwarka, and Jasola. 

• Maharashtra Housing and Area Development Authority Lottery Scheme: This scheme offers 13,000 low-cost houses to the state’s residents. The income criteria for this lottery scheme is 25,000 to 75,000, depending on the flat’s category.             

//Before this section – can we have one section that just mentions the various state-level subsidies in brief?

In Conclusion 

It is no news that housing is not a luxury but a basic necessity like clothing and food. Everyone deserves to own a house after a certain age and secure the roofs over their heads. Then, this hassle of increasing rents makes it even more rewarding to build a house for your family. 

If you are someone with the ambition to build the house of your dreams, ensure to make the most of all the schemes and incentives mentioned above. Besides that, you must leverage platforms like Credit Dharma to make smarter investment and borrowing decisions.