Subsidised housing is a government initiative aimed at providing affordable and secure accommodation for low-income earners, senior citizens, and people with disabilities. This scheme is overseen and funded by the government to enable individuals and families to live in a stable and comfortable home at a reduced cost. In India, there are various types of subsidised housing schemes that cater to different needs and requirements.
In this guide, we will explore what subsidised housing is, the different types of subsidised housing in India, how to qualify for subsidised housing, the benefits associated with it, and how Bajaj Finance can help you get your dream home with an affordable home loan.
What is subsidised housing?
Subsidised housing, also known as affordable housing, is a scheme initiated by the government to ease the burden of housing finance on low-income earners, seniors, and people with disabilities. This scheme involves providing housing at a reduced cost or subsidised rates to help those who cannot afford to pay regular market rates. Subsidised housing is usually provided in the form of rental housing, housing loans, or grants.
Different types of subsidised housing in India
- Pradhan Mantri Awas Yojana (PMAY) - This is a housing scheme initiated by the Government of India to provide affordable housing to the urban poor. PMAY provides credit-linked subsidies to eligible individuals to purchase, construct, or renovate their homes.
- Affordable Housing in Partnership (AHP) - AHP is focused on promoting public-private partnerships in affordable housing projects. It aims to provide affordable housing to people in both urban and rural areas.
How to qualify for subsidised housing?
Different types of subsidised housing schemes have different eligibility criteria. However, some of the basic requirements include:
- Income - The applicant must be a low-income earner, among other criteria specific to the scheme. Applicants are required to provide proof of income, which must be below a specific limit to be eligible.
- Legal status - Applicants must have the right to live in India and be a legal citizen or permanent resident.
- Property ownership - Applicants should not own any other property in their name or their spouse's name in any part of India.
- Age - Some schemes have age requirements, such as PMAY, which is applicable to individuals between the ages of 21 and 55.
Benefits of subsidised housing
- Affordable housing - Subsidised housing provides affordable housing options, which are much cheaper than regular market rates.
- Security of tenure - Subsidised housing provides a level of security as it offers residents protection against eviction and guarantees residency for the foreseeable future.
- Better quality housing - Subsidised housing in India generally provides quality, safe and comfortable housing.
- Financial relief - Rental fees or mortgage payments associated with subsidised housing schemes are typically significantly lower than market rates, relieving the financial burden.
Subsidised housing schemes in India offer a ray of hope for low-income earners, senior citizens, and people with disabilities to secure an affordable and comfortable home. It is essential to understand the eligibility criteria for each scheme and the different types of housing options available.
For those looking to purchase a home, Bajaj Finance offers a range of affordable home loan with minimal documentation, making the process transparent and stress-free. Consider speaking with a Bajaj Finance customer service representative to discover how they can help you achieve the home of your dreams at an affordable rate.
