Elimination of slums and providing affordable housing for the residents is a crucial part of the development schemes in India. The central government rolls out various programmes to provide housing for the citizens, from time to time. They have ambitious plan of providing housing for all by 2022 and making the efforts to boost construction activities. However, some states have their own housing schemes too.

If you have been looking forward to purchasing a house, it will help you know about these housing schemes.

Different housing schemes in India

  • Pradhan Mantri Awas Yojana (PMAY)

PMAY was launched in 2015 under the leadership of Prime Minister Narendra Modi. Its goal is to provide 20 million houses by March 2022. It is divided into two parts: PMAY Gramin and PMAY urban. As the name suggests, there are separate housing schemes for urban and rural areas of the country under PMAY. Under this scheme, the beneficiaries will get subsidies on home loan interest rates of up to 6.5% for purchasing or constructing their first house.

  • Rajiv Awas Yojana

Rajiv Awas Yojana (RAY), named after the former prime minister of India, Rajiv Gandhi, was launched to provide affordable housing to slum-dwellers. It aimed at providing legalised alternatives to slums-dwellers in the form of comfortable houses. RAY also provided basic civic amenities and infrastructure in the existing slums to improve the quality of life of the people. With a vision of “Slum Free India”, RAY encourages people of lower-income groups to leave slums and shift in legal habitations.

Some state run schemes include:

  • Tamil Nadu Housing scheme

Tamil Nadu Housing Board Scheme started in 1961 to provide shelter to various income groups. Under this scheme, the residents of Tamil Nadu can get affordable good quality homes. The beneficiaries can get the ownership by paying initial deposit and furnishing application form.

  • DDA housing scheme

This affordable housing scheme is offered by the Delhi development authority (DDA). Delhi was the first state to have its own housing scheme with the DDA housing scheme. This housing scheme provides apartments to homebuyers of low, medium and high-income brackets within city limits. It provides affordable housing to the economically weaker section (EWS). Houses under this scheme are available in areas like Dwarka, Vasant Kunj, Jasola, Rohini, Manglapuri, Narela, etc.

To be eligible for this scheme, you must be an Indian resident and have a PAN card. You must be at least 18 years old

  • NTR Housing scheme

This housing scheme is for the residents of Andhra Pradesh. Under the NTR housing scheme, the beneficiaries would only need to pay one-third of the home loan principal amount. The remaining two-thirds amount would be borne by the state and central government. To be eligible for this scheme, you should be a resident of Andhra Pradesh, should not own any plot or pucca house under any government schemes, and should have a ration card of below poverty line (BPL) card.


It is a lottery scheme for residents of Maharashtra wherein affordable homes are allotted to various income groups based on the draw. You can apply for this scheme by submitting an online application.

With these housing schemes, it is easy to get your own house at affordable rates. If you are looking for competitive home loan interest rates and better features, you can apply for a home loan with Kotak Mahindra Bank today.

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Disclaimer: This Article is for information purpose only. The views expressed in this Article do not necessarily constitute the views of Kotak Mahindra Bank Ltd. (“Bank”) or its employees. Bank make no warranty of any kind with respect to the completeness or accuracy of the material and articles contained in this Newsletter. The information contained in this Article is sourced from empaneled external experts for the benefit of the customers and it does not constitute legal advice from Kotak. Kotak, its directors, employees and the contributors shall not be responsible or liable for any damage or loss resulting from or arising due to reliance on or use of any information contained herein.